In the light of the negative sentiment towards AI-based traffic control technology company Axilion (TASE: AILN), with a stream of negative reports and the collapse of its share price, CEO Oran Dror, who was one of the founders, has decided to step down.
The company's share price has responded with a rise of nearly 20%. The share price has fallen by more than 80% since the beginning of the year.
Dror will leave his post immediately, and will be replaced by VP R&D Danny Bechar, who will serve as acting CEO until a permanent appointment is made. Dror is entitled to six months notice of dismissal, and in that period he will provide consulting services in coordination with the company.
Axilion was floated on the stock exchange towards the end of 2020 through a merger with a stock market shell. Within a few months, amid the huge hype surrounding technology companies that gained momentum in the coronavirus pandemic, its share price rose by more than 2,000%, to give it a market cap of some NIS 1.3 billion at the beginning of this year.
This propelled Axilion onto the Tel Aviv 90 and Tel Aviv 125 lists, and all this despite the fact that the company was reporting quarterly revenue of just a few million shekels.
Recently, however, market sentiment turned against the company, as bad news started to flow, including the cancellation of two pilot schemes the company was due to undertake, in the US and France, the failure to list on Nasdaq, and the departure of key people.
Yesterday, Axilion announced that Satcom Systems chairman Ami Barlev and former Israel Chemicals VP business development Shay Misch were joining its board of directors.
Published by Globes, Israel business news - en.globes.co.il - on June 30, 2021
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