A U.S. criminal investigation has led the company chairman Pomwm The trader in Tel Aviv resigned immediately, after less than a year in office. PomWom reported to the stock exchange that its chairman, Ryan Shapiro, “is involved in a criminal investigation into alleged unrelated US securities trading. For the benefit of the company, Mr. Shapiro has decided to resign immediately from his position at the company. His tenure has no effect on its business and / or operations. “
Shapiro joined the company’s board of directors in February this year, andin May Appointed to the position of chairman of the board, about two and a half months after Pomwom was issued on the stock exchange. A new rabbi in place of Shapiro.
“Material information not in the public’s possession”
A statement issued by the Massachusetts State Attorney’s Office nearly two weeks ago addresses the issue, according to which Shapiro and another person, Chris Bortanowski, were arrested for questioning on suspicion of trafficking in inside information. According to the announcement, the suspicion is that their activity generated them profits of at least $ 4 million. The announcement states that “From August 2017 to November 2021, Chris Bortenowski, financial advisor, and Shapiro, entrepreneur and founder of two private companies, conspired to trade in a number of shares of public companies, based on material information not held by the public, regarding financial statements and results of mergers and acquisitions. The same companies. ” According to the suspicion, in many cases Bortenowski and Shapiro received the joint information that was close to the officers in these companies. The announcement further states that the law stipulates in such cases a penalty of up to 5 years in prison and a fine of $ 250,000.
“Choose this step for the benefit of the company”
PomWom has developed a system that enables the provision of digital photography services based on facial recognition software and artificial intelligence, which is intended for use in amusement parks, sports events and concerts. Shapiro is one of the company’s investors even before its IPO on the local stock exchange, and before the IPO he owned through Everglades Capital Holdings about 9% of the fully diluted Pomwom shares. He currently owns about 6.9% of the company’s shares, whose current value is NIS 17.5 million.
PomWom was issued in March when it raised NIS 38 million in Tel Aviv at a value of NIS 135 million (after the money). Its current market value reaches NIS 254 million.
From PomWom it was stated in response that “the company Was informed of Mr. Shapiro’s resignation and reported in accordance with the provisions of the law. In the circumstances of his resignation, there is no connection to the company and its activities, and he chose this step in favor of the company. “