Medigus Receives Nasdaq Letter Regarding Audit Committee Compliance
OMER, Israel, September 15, 2016 — Medigus Ltd. (NASDAQ: MDGS) (TASE: MDGS), a medical device company developing minimally invasive endosurgical tools and a leader in direct visualization technology, today announced that in connection with the previously announced resignation of Mr. Ori Hershkovitz as an external director of the Company on August 15, 2016, the Company has received a letter from The Nasdaq Stock Market dated September 12, 2016, indicating that the Company is no longer in compliance with Nasdaq’s audit committee requirement as set forth in Nasdaq Listing Rule 5605, which requires that the Company’s audit committee be comprised of at least three members, each of whom are independent.
Consistent with Marketplace Rule 5605(c)(4) the Company has until (i) the earlier of its next annual shareholders meeting or August 15, 2017, or (ii) if the next annual shareholders meeting is held before February 13, 2017, then the Company has until February 17, 2017, to name a third director as a member of the audit committee so that the Company regains compliance with the requirements of Nasdaq Listing Rule 5605.
On August 22, 2016, the Company called an annual general meeting of the shareholders to be held on September 28, 2016, the agenda of which included the election of Mr. Eitan Machover as an external director of the Company. Upon his election, Mr. Machover will join the Company’s audit committee, which will then be comprised of three independent directors. As such, the Company expects to fill the vacancy created by Mr. Hershkovitz’s resignation later this month and within the timeframe required by the Nasdaq Listing Rules.