Todos Medical Announces Insolvency Proceedings in Israel

NEW YORK, NY, ALPHARETTA, GA and TEL AVIV, Israel, Dec. 22, 2023 (GLOBE NEWSWIRE) -- via NewMediaWire -- Todos Medical, Ltd. (OTCQB: TOMDF), an innovative healthcare solutions company, today announced that a trustee was appointed (the “Trustee”) with respect to an insolvency order that was issued with respect to the Company in Israel related to a request for liquidation filed by the Company’s Founder and former Director, President & CEO Rami Zigdon.

As disclosed in the Company’s 2022 annual report filed with OTC Markets on July 17, 2023, the Company’s former CEO Rami Zigdon filed a lawsuit in Israel against the Company for unpaid wages stemming from the period of time when Mr. Zigdon was Director, President & CEO of Todos Medical. The Company entered into a settlement agreement with Mr. Zigdon for $120,000 in the fourth quarter of 2022, to be paid in three installments, as the Company was preparing to list its Ordinary shares onto the NYSE American stock exchange and effect a related public offering originally filed on Form S-1 in July 2022. Due to unforeseen setbacks and adverse market conditions during the listing process, the Company was unable to effect the NYSE American and related public offering. The Company made the first payment, of $24,000, to Mr. ZIgdon in January 2023. In August 2023, the Company entered into a revised settlement agreement with Mr. Zigdon for $110,000, above and beyond the $24,00 already paid, following a hearing with the Court of Insolvency to be paid in two installments: 1) $28,500 in September 2023 and 2) $79,500 in November 2023. The Company paid the $28,500 in September 2023. Unfortunately, despite the Company making every attempt to secure funding to make the $79,500 payment, the Company was unable to timely complete the settlement and was not granted additional time by the Court to make the payment, despite suffering significant operational, financial and capital raising hardships as a result of the Israel-Hamas war that began following the Hamas terrorist attacks of October 7, 2023. In December 2023, a trustee was appointed by the Court of Insolvency to oversee the liquidation of Todos Medical Ltd. in Israel. The Company has submitted to the trustee a summary plan of reorganization to satisfy its liabilities without the Company going through liquidation.