Israeli District Court Rules in Favor of Murchinson and Validates Shareholder Vote from the Nano Dimension March 2023 Special Meeting
The Israeli District Court has ruled in favor of Murchinson, validating the March 2023 special meeting results for Nano Dimension (NNDM). The Court confirmed shareholders' proposals to amend company articles, allowing them to fill Board vacancies and remove directors with simple majority. The ruling validates the removal of three directors (Stern, Nissan-Cohen, and Gera) and confirms Kenneth Traub and Dr. Joshua Rosensweig as legitimate Board members. Murchinson, holding approximately 7.1% of NNDM shares, urges the Board to comply with the decision immediately and implement the shareholder-approved changes.
Il Tribunale distrettuale israeliano ha emesso una sentenza a favore di Murchinson, convalidando i risultati dell'assemblea speciale di marzo 2023 per Nano Dimension (NNDM). Il Tribunale ha confermato le proposte degli azionisti di modificare gli articoli aziendali, permettendo loro di riempire i posti vacanti nel Consiglio e rimuovere i direttori con semplice maggioranza. La sentenza valida la rimozione di tre direttori (Stern, Nissan-Cohen e Gera) e conferma Kenneth Traub e il Dr. Joshua Rosensweig come membri legittimi del Consiglio. Murchinson, che possiede circa il 7,1% delle azioni di NNDM, esorta il Consiglio a conformarsi immediatamente alla decisione e a implementare le modifiche approvate dagli azionisti.
El Tribunal de Distrito de Israel ha fallado a favor de Murchinson, validando los resultados de la reunión especial de marzo de 2023 para Nano Dimension (NNDM). El Tribunal confirmó las propuestas de los accionistas para enmendar los artículos de la empresa, permitiéndoles ocupar vacantes en la Junta y destituir directores con una simple mayoría. La decisión valida la remoción de tres directores (Stern, Nissan-Cohen y Gera) y confirma a Kenneth Traub y al Dr. Joshua Rosensweig como miembros legítimos de la Junta. Murchinson, que posee aproximadamente el 7.1% de las acciones de NNDM, insta a la Junta a cumplir de inmediato con la decisión e implementar los cambios aprobados por los accionistas.
이스라엘 지방 법원은 머치슨을 지지하는 판결을 내렸습니다, 2023년 3월 특별 회의 결과를 나노 디멘션(NNDM)에 대해 검증했습니다. 법원은 주주들이 회사 정관을 수정하자는 제안을 확인하여, 이사회 공석을 채우고 단순 과반수로 이사를 해임할 수 있도록 했습니다. 이 판결은 세 명의 이사(스턴, 니산-코헨, 게라)의 해임을 유효하게 하며, 케네스 트라우브와 조슈아 로젠스와이그 박사를 합법적인 이사회 멤버로 인증합니다. 머치슨은 NNDM 주식의 약 7.1%를 보유하고 있으며, 이사회에 즉시 결정에 따르고 주주 승인 변경 사항을 시행할 것을 촉구합니다.
Le tribunal de district israélien a rendu un jugement en faveur de Murchinson, validant les résultats de l'assemblée spéciale de mars 2023 pour Nano Dimension (NNDM). Le tribunal a confirmé les propositions des actionnaires visant à modifier les statuts de l'entreprise, leur permettant de combler les postes vacants au conseil et de révoquer des administrateurs par une simple majorité. Le jugement valide la révocation de trois administrateurs (Stern, Nissan-Cohen et Gera) et confirme Kenneth Traub et Dr. Joshua Rosensweig en tant que membres légitimes du conseil. Murchinson, détenant environ 7,1% des actions de NNDM, exhorte le conseil à se conformer immédiatement à la décision et à mettre en œuvre les modifications approuvées par les actionnaires.
Das israelische Bezirksgericht hat zu Gunsten von Murchinson entschieden und die Ergebnisse der außerordentlichen Hauptversammlung im März 2023 für Nano Dimension (NNDM) bestätigt. Das Gericht hat die Vorschläge der Aktionäre zur Änderung der Unternehmenssatzung bestätigt, die es ihnen erlaubt, vakante Vorstandsposten zu besetzen und Direktoren mit einfacher Mehrheit abzuberufen. Das Urteil bestätigt die Abberufung von drei Direktoren (Stern, Nissan-Cohen und Gera) und bestätigt Kenneth Traub und Dr. Joshua Rosensweig als legitime Vorstandsmitglieder. Murchinson, das etwa 7,1% der NNDM-Aktien hält, fordert den Vorstand auf, umgehend der Entscheidung nachzukommen und die von den Aktionären genehmigten Änderungen umzusetzen.
- Court ruling validates shareholders' rights to fill Board vacancies and remove directors
- Confirmation of two new independent directors to the Board
- Enhanced shareholder rights through simplified director removal process
- Company spent significant funds on litigation against shareholders' interests
- Management attempted to deny ADS holders' voting rights
- Ongoing corporate governance issues requiring shareholder intervention
Insights
This landmark court ruling represents a significant victory for shareholder rights in Israeli corporate governance. The decision validates shareholders' ability to exercise fundamental voting rights through ADSs, rejecting Nano Dimension's attempt to limit voting power to the depositary bank. The ruling upholds three critical changes: allowing shareholders to fill board vacancies, enabling director removal by simple majority and confirming the removal of three directors and installation of two new board members.
The court's validation of the March 2023 EGM results effectively restructures Nano's board composition and strengthens shareholder rights. This sets an important precedent for other Israeli companies with ADR programs and reinforces protections for international investors. The immediate impact includes the confirmed removal of CEO Yoav Stern from the board, along with two other directors, potentially signaling a significant shift in corporate governance and strategy.
This ruling addresses fundamental corporate governance deficiencies at Nano Dimension. The previous structure, which restricted shareholders' ability to influence board composition and required special majorities for director removal, was notably shareholder-unfriendly. The 7.1% stakeholder Murchinson's success in implementing these changes could catalyze improved oversight and accountability.
The company's aggressive legal stance against its own shareholders, particularly the argument that ADS holders lack rights, raises serious governance concerns. The upcoming December 6 annual meeting becomes particularly significant as it may further reshape the board's composition. Investors should monitor the implementation of these changes and any potential resistance from current management, as it could impact corporate strategy and capital allocation decisions.
Court’s Decision Rejects Nano’s Shameless and Desperate Attempt to Disenfranchise Shareholders By Claiming ADS Holders Have No Rights
Murchinson is Pleased with the Court’s Ruling and Will Continue its Efforts to Improve Nano’s Broken Corporate Governance, Halt the Pattern of Hypocritical Actions and Protect All Shareholders’ Interests Through Current Proxy Contest
Murchinson Urges Nano’s Board to Comply with the Court’s Decision Immediately and Avoid Costly Legal Maneuvers or Other Attempts to Evade Implementing What Shareholders Voted For
At the March 2023 EGM, shareholders overwhelmingly supported all of Murchinson’s proposals to:
- Amend the Articles of Association of Nano to allow shareholders to fill vacancies on the Board of Directors (the “Board”). This right was previously available only to the Board.
- Amend the Articles of Association of Nano to allow shareholders to remove directors from the Board at any general meeting and via a simple majority. Previously, shareholders had no such right to hold directors accountable between annual meetings and could only do so with a special majority.
- Remove four then-serving directors: Yoav Stern, Yoav Nissan-Cohen, Oded Gera and Igal Rotem. Notably, Mr. Rotem has since resigned from the Board, but Messrs. Stern, Nissan-Cohen and Gera continued to serve on the Board.
- Install two independent and highly-qualified professionals on the Board: Kenneth Traub and Dr. Joshua Rosensweig.
The Court’s decision confirms that Mr. Traub and Dr. Rosensweig are full members of the Board, and that Messrs. Stern, Nissan-Cohen and Gera were lawfully removed from the Board at the March 2023 EGM.
Murchinson commented:
“We are pleased that the Court has validated the results of the shareholder vote that took place at the March 2023 EGM. Fellow shareholders should be reminded that Nano, at Mr. Stern’s direction, spent millions of dollars on this litigation to fight its shareholders, taking the position that holders of American Depository Shares (ADS) – which are the securities that we all own and are the only listed securities of the Company – do not have any rights. In fact, Nano went as far as claiming that the Company had only one shareholder, the ADS depository (the Bank of New York Mellon), and that the bank was the only one that had all the rights afforded to shareholders under the law. This fundamentally flawed argument and the massive legal effort and cost Murchinson was forced to take on in order to dispel it, further demonstrates what by now should be clear: Nano is run by a CEO and Board that have no regard for the rights and interests of shareholders.
We urge Nano’s Board to break its pattern of worst-in-class governance by immediately complying with the Court’s ruling and engaging in good faith to implement the decision and conduct an orderly transition of the Board seats to Mr. Traub and Dr. Rosensweig. Resorting to further costly legal maneuvers or other attempts to evade the Court decision and the clear will of shareholders would be a dereliction of the Board’s fiduciary duties to shareholders.
Unfortunately, given Nano’s track record, there remains an urgent need for independent voices in the Nano boardroom now. We call on our fellow shareholders to bring this sorely needed change to fruition by supporting our proposals and highly-qualified nominees at the upcoming annual general meeting scheduled for December 6, 2024. Together, we can save Nano Dimension.”
About Murchinson
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This press release contains forward-looking information within the meaning of applicable securities laws. In general, forward-looking information refers to disclosure about future conditions, courses of action, and events. All statements contained in this press release that are not clearly historical in nature or that necessarily depend on future events are forward‐looking, and the use of any of the words “anticipates”, “believes”, “expects”, “intends”, “plans”, “will”, “would”, and similar expressions are intended to identify forward-looking statements. These statements are based on current expectations of Murchinson and currently available information. Forward-looking statements are not guarantees of future performance, involve certain risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove to be accurate. Murchinson undertakes no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable securities legislation.
Disclaimer
The information contained or referenced herein is for information purposes only in order to provide the views of Murchinson and the matters which Murchinson believes to be of concern to shareholders described herein. The information is not tailored to specific investment objections, the financial situations, suitability, or particular need of any specific person(s) who may receive the information, and should not be taken as advice in considering the merits of any investment decision. The views expressed herein represent the views and opinions of Murchinson, whose opinions may change at any time and which are based on analyses of Murchinson and its advisors. In addition, the information contained herein is being publicly disclosed without prejudice and shall not be construed to prejudice any of Murchinson’s rights, demands, grounds and/or remedies under any contract and/or law.
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Okapi Partners LLC
Bruce Goldfarb / Chuck Garske
212-297-0720
info@okapipartners.com
Longacre Square Partners
Ashley Areopagita
murchinson@longacresquare.com
Source: Murchinson Ltd.
FAQ
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