- Medison calls on Knight board of directors and shareholders to demand Goodman nominate someone other than himself to the Medison board to ensure their interests are properly represented
PETACH TIKVA, Israel, August 26, 2019 – Medison Biotech (1995) Ltd. (“Medison”), which together with its affiliates owns more than 10.4 million shares or 7.5% of Knight Therapeutics, Inc. (TSX:GUD) (“Knight” or the “Company”), received a favorable ruling from Israeli courts in response to a frivolous and costly litigation claim brought by Knight CEO, Jonathan Goodman, against Medison in an attempt to silence Medison with respect to Knight’s lack of performance and poor corporate governance.
Jonathan Goodman, who serves as Knight’s representative on Medison’s board of directors, applied to Israeli courts seeking interim injunctions and orders in a self-interested attempt to paralyze Medison’s board of directors. These applications were made as part of a series of frivolous and baseless proceedings initiated by Jonathan Goodman and Knight in Israeli courts against Medison with the intent of stopping Medison from openly criticizing Knight and expressing its deep dissatisfaction as a result of Knight’s failure to create value and poor corporate governance practices.
Yesterday, Israeli courts ruled against Goodman and dismissed his applications without even holding a hearing and ordered Knight to pay Medison’s expenses relating to these proceedings. The Israeli court affirmatively determined that Goodman did not act in good faith in filing the motion for interim injunctions and stated that Goodman’s lack of good faith is one of the reasons Goodman’s motion was dismissed.
Meir Jakobsohn, Medison’s CEO, commented: “Jonathan Goodman continues to spend Knight’s money and waste substantial management resources on bringing frivolous claims in Israeli courts. We would prefer that Jonathan Goodman focus on creating value for shareholders, and to focus his efforts on finally addressing and fixing the conflicts of interest and corporate governance failures. To continue to ignore these issues is detrimental to every shareholder of Knight.”
“The court ruling today confirms that Jonathan Goodman has no interest in working on behalf of Knight shareholders or being a constructive member of the Medison board. It is not surprising that a person who holds a larger stake in Pharmascience, a direct competitor of Knight, while running Knight, also does not understand basic principles of good governance and the rules of managing a conflict. Knight, with its deep conflicts and entrenched board, is a complete reflection of Jonathan Goodman’s disdain as a fiduciary. We are very pleased with the determination by the Israeli courts not to let this nuisance litigation proceed.”
“The court ruling today only emphasizes that Knight’s best interest, although not necessarily Goodman’s best interest, is to nominate an independent nominee to the Medison board of directors, who is not tainted with Jonathan Goodman’s conflicts of interest and lack of strategic focus. We at Medison have done exactly that and appointed a nominee to Knight’s board of directors that is totally independent of Medison and myself.”
Medison has maintained its website, www.NewDayForKnight.com , and encourages shareholders to visit for updates.
Medison is one of the world’s largest commercial partners of leading global biotech companies. Medison is uniquely qualified to provide the complete spectrum of integrated services for international companies looking to enter or expand their presence in selected ROW markets (Israel, Canada and CEE markets). Medison runs a corporate venture arm with a dedicated research and evaluation team boasting deep scientific and commercial backgrounds. Medison also operates a scouting program to cater its partners and is an active investor in life science projects around drug development and digital health.
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