Todos Medical Ltd (OTC:TOMDF) Stock Falls 25%: Here is Why
As another trading week continues, it may be a good time for companies to take a look into companies that have come into the news cycle in recent days. One such company is the innovative healthcare solutions firm Todos Medical Ltd. (OTC:TOMDF). On December 22, the company entered the news cycle after it announced that it had appointed a new trustee.
The appointment had been made in relation to an insolvency order that had been issued to Todos Medical in Israel. That had been a response to the request for liquidation that had been filed by Rami Zignod, the founder of Todos Medical and its former President, Chief Executive Officer, and Director.
In the annual report that had been filed on July 17, 2023, by the company for 2022 with the OTC Market, Zigdon had filed a lawsuit against Todos Medical. The lawsuit had been for unpaid wages that had originated from the time when Zigdon had been the president, CEO, and a director at Todos Medical.
Eventually, the company went into a settlement agreement with the former CEO for $120,000 in the fourth fiscal quarter of 2022. The sum of money would be paid in three installments. At the time, the company had been making preparations for the listing of its ordinary shares on the NYSE American exchange.
Due to certain unforeseen circumstances, including some setbacks and tough market conditions, Todos Medical failed to complete the listing. After having made some payments towards the $120,000, $79,500 remained unpaid, and despite making attempts to secure the funding, Todos Medical was not given additional time to complete the payment.
The company suffered considerable financial hardships owing to the war in Israel as well. The Court of Insolvency in Israel appointed a trustee in December 2023 to manage the liquidation of Todos Medical. However, the company submitted a plan of reorganization to the trustee so that the liabilities could be satisfied without the liquidation of the company.
