Oozi Cats, the chief executive of Telit Communications Plc (LON:TCM), has resigned from his position with immediate effect following a recent internal investigation into alleged historical indictments.
Reports last week alleged that Cats had been on the run from US law enforcement since the early ‘90s after skipping a plea hearing.
Last Wednesday Telit confirmed it had hired a law firm to assess whether or not Oozi and his wife were connected to the Uzi and Ruth Katz named in the court papers.
The Internet of Things (IoT) enabler has said today that said Cats had “knowingly withheld” the indictments from the company.
“It is a source of considerable anger to the board that the historical indictment against Oozi Cats was never disclosed to them or previous members of the board and that they have only been made aware of its existence through third parties,” a statement said.
Yosi Fait will continue as interim chief executive officer while three independent non-executive directors are expected to be appointed “as soon as possible” to reinforce the board.
One of those new additions will become chairman of the group and all will be UK-based with previous PLC board experience, Telit said.
Telit remains on track to hit recent full-year guidance
The AIM-quoted firm told investors that the drama had not affected its underlying business and that it still expects to post adjusted underlying earnings for 2017 of between US$47mln and US$60mln on revenues of between US$400mln and US$430mln.
Fait is conducting a preliminary review of the company’s activities and cost base and an update on this as well as the general business performance is expected next month.
Telit added that there is “no substance” to recent speculation surrounding its financial position and trading performance.
There was also a mention of BAMES, the Italian electronics manufacturer that collapsed in 2013.
Should any charges be levelled against the group or its associates in relation to that collapse, Telit said it would “defend its position vigorously and considers that any action would be without merit”.
Shares were up 3.6% to 138p in early afternoon trading.
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