Telit shares plummet as CEO takes leave of absence

Paterniano Del Favero
Agosto 10, 2017

Shares in Telit dived nearly a third to trade around £1.27 at lunchtime on the news. Shares in the company are down 56% since the start of the week.

Telit said in a regulatory statement on Wednesday that it had been made aware of the indictment against CEO Oozi Cats, which was later dismissed, and had appointed a law firm to review the matter, which it said was "unrelated to Telit and significantly pre-date (s) its establishment". Telit's finance director Yosi Fair will run the firm in the meantime.

On Monday, Telit swung to a USD6.7 million loss in the first half of 2017 and, following its USD8.0 million acquisition of GainSpan Corp, said it will not pay a dividend for the period as revenue was lower than expected. The company had a valuation of close to £500m earlier this year.

Telit had previously been riding high on strong investor appetite for internet of things technology, which hooks up everyday devices to the internet so that they can share data and improve performance.

The investigation was triggered by media reports, originating in Italy - where Mr Cats is understood to live - suggesting he was indicted by the district court of MA in 1992.

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