Elbit Systems Announces Resignation of Its External Director, Moshe Kaplinsky

Rhea-AI Summary

On June 17, 2020, Elbit Systems Ltd. (NASDAQ: ESLT) announced the resignation of Mr. Moshe Kaplinsky from its Board of Directors. Elected as an External Director in March 2020, Kaplinsky stepped down to prevent potential conflicts of interest following his recent appointment as CEO of Oil Refineries Ltd. (Bazan). Elbit Systems acknowledged his contributions and confirmed that it will act swiftly to identify a new External Director to maintain compliance with Nasdaq Listing Rule 5605(b)(1), ensuring Independent Directors continue to hold a majority on the Board.

Positive

• Prompt action to find a suitable candidate can ensure quick compliance with Nasdaq requirements.
• Kaplinsky's previous contributions are acknowledged, indicating effective governance practices.

Negative

• Temporary non-compliance with Nasdaq Listing Rule 5605(b)(1) may raise regulatory concerns.
• Concerns about continuity in board governance with Kaplinsky's departure.

HAIFA, Israel, June 17, 2020 /PRNewswire/ -- Elbit Systems Ltd. (NASDAQ: ESLT) (TASE: ESLT) ("Elbit Systems" or the "Company") announced today that Mr. Moshe Kaplinsky, who was elected as an External Director of the Company's Board of Directors in March 2020, has tendered his resignation to the Company. Mr. Kaplinsky indicated that the reason for his resignation was as a matter of caution to avoid any potential conflict of interests due to his recent nomination as the CEO of Oil Refineries Ltd. (Bazan). The Company has accepted Mr. Kaplinsky's resignation and thanked him for his contribution during his tenure. The Company has provided Nasdaq with a notice that it would be temporarily out of compliance with Nasdaq Listing Rule 5605(b)(1) requiring that Independent Directors constitute a majority of the Company's Board. The Company will promptly proceed with the process of identifying a suitable candidate for election as an External Director and convening a shareholders meeting for his or her election, within the periods set forth in the Companies Law and Nasdaq Listing Rules.

About Elbit Systems

Elbit Systems Ltd. is an international high technology company engaged in a wide range of defense, homeland security and commercial programs throughout the world. The Company, which includes Elbit Systems and its subsidiaries, operates in the areas of aerospace, land and naval systems, command, control, communications, computers, intelligence surveillance and reconnaissance ("C4ISR"), unmanned aircraft systems, advanced electro-optics, electro-optic space systems, EW suites, signal intelligence systems, data links and communications systems, radios, cyber-based systems and munitions. The Company also focuses on the upgrading of existing platforms, developing new technologies for defense, homeland security and commercial applications and providing a range of support services, including training and simulation systems. For additional information, visit: https://elbitsystems.com/, follow us on Twitter or visit our official Facebook, Youtube and LinkedIn Channels.

This press release may contain forward–looking statements (within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Israeli Securities Law, 1968) regarding Elbit Systems Ltd. and/or its subsidiaries (collectively the Company), to the extent such statements do not relate to historical or current facts. Forward-looking statements are based on management's current expectations, estimates, projections and assumptions about future events. Forward–looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions about the Company, which are difficult to predict, including projections of the Company's future financial results, its anticipated growth strategies and anticipated trends in its business.  Therefore, actual future results, performance and trends may differ materially from these forward–looking statements due to a variety of factors, including, without limitation: scope and length of customer contracts; governmental regulations and approvals; changes in governmental budgeting priorities; general market, political and economic conditions in the countries in which the Company operates or sells, including Israel and the United States among others; changes in global health and macro-economic conditions; differences in anticipated and actual program performance, including the ability to perform under long-term fixed-price contracts; changes in the competitive environment; and the outcome of legal and/or regulatory proceedings.  The factors listed above are not all-inclusive, and further information is contained in Elbit Systems Ltd.'s latest annual report on Form 20-F, which is on file with the U.S. Securities and Exchange Commission. All forward–looking statements speak only as of the date of this release. Although the Company believes the expectations reflected in the forward-looking statements contained herein are reasonable, it cannot guarantee future results, level of activity, performance or achievements. Moreover, neither the Company nor any other person assumes responsibility for the accuracy and completeness of any of these forward-looking statements. The Company does not undertake to update its forward-looking statements. 

Elbit Systems Ltd., its logo, brand, product, service and process names appearing in this Press Release are the trademarks or service marks of Elbit Systems Ltd. or its affiliated companies.  All other brand, product, service and process names appearing are the trademarks of their respective holders.  Reference to or use of a product, service or process other than those of Elbit Systems Ltd. does not imply recommendation, approval, affiliation or sponsorship of that product, service or process by Elbit Systems Ltd. Nothing contained herein shall be construed as conferring by implication, estoppel or otherwise any license or right under any patent, copyright, trademark or other intellectual property right of Elbit Systems Ltd. or any third party, except as expressly granted herein.

 

Contacts:

Company Contact:          Joseph Gaspar, Executive VP & CFO Tel:  +972-4-8316663 j.gaspar@elbitsystems.com   Rami Myerson, Director, Investor Relations Tel: +972-77-2948984 rami.myerson@elbitsystems.com   David Vaaknin, VP, Head of Corporate Communications Tel: +972-77-2946691 david.vaaknin@elbitsystems.com

IR Contact:    Ehud Helft Gavriel Frohwein GK Investor Relations Tel: 1-646-201-9246 elbitsystems@gkir.com

 

 

 

 

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SOURCE Elbit Systems Ltd

FAQ

Why did Moshe Kaplinsky resign from Elbit Systems' Board of Directors?

Moshe Kaplinsky resigned to avoid potential conflicts of interest due to his recent appointment as CEO of Oil Refineries Ltd.

What impact does Kaplinsky's resignation have on Elbit Systems' Board composition?

Kaplinsky's resignation temporarily disrupts compliance with Nasdaq's requirement that Independent Directors constitute a majority on the Board.

What steps will Elbit Systems take following Kaplinsky's resignation?

Elbit Systems will promptly seek a suitable candidate to fill the External Director vacancy and plans to convene a shareholders meeting for their election.

When did Moshe Kaplinsky join the Board of Elbit Systems?

Moshe Kaplinsky was elected as an External Director in March 2020.