The company’s chairman and CEO are suspected of concealing the losses and filing false reports.
TRD Instrum Ltd. (TASE:TRD) today notified the Tel Aviv Stock Exchange (TASE) that it lost NIS 20.6 million on NIS 38 million in investments in dollar positions and Tel Aviv 25 index options. The announcement has turned the company’s paper loss into a real one.
TRD controlling shareholders chairman Zvi Davidovich and CEO Israel Ramot, arrested by the Israel Securities Authority, were released on restricted terms. They are suspected of concealing from the public information about the company’s tens of millions of shekels in losses on its investments.
Davidovich and Ramot are also suspected of filing misleading reports in order to mislead reasonable investors. The Securities Authority investigation also found that beginning in late August, the value of TRD’s offering plummeted. The company has lost more than 60% of the NIS 25 million raised in its IPO. As “Globes” first reported, the company only announced the loss in December, and then only at the explicit order of the Securities Authority.
Published by Globes [online], Israel business news - www.globes.co.il - on January 1, 2007
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