Bethel Finance: Lifewave fails to make reduced payments to senior managers

www.bethelfinance.com
Wound treatment technology company LifeWave Hi-Tech Medical Devices Ltd. (TASE:LIFE), which suffers from severe cash flow difficulties, has failed to meet a payment due to company chairman Haim Ramon, CEO Michel Afargan, and CFO Gal Peleg, even after they forewent part of their salaries and agreed to defer some of the payments to July.

The failure to abide by the amended agreement means that it becomes void, and the three senior managers can again demand their full salaries from the company. In 2010, Ramon’s salary cost totaled about NIS 1 million (mostly in options), while Afargan and Peleg were entitled to salaries costing NIS 1.54 million and NIS 475,000 respectively.

Lifewave, which had only NIS 3,000 cash at the end of the third quarter of 2011, awaits two injections of cash: NIS 900,000 from controlling shareholder RLB Investments, owned by Yitzhak Kaufman and Reuven Shulman, and NIS 170,000 from an unnamed investor.

The company has already granted several extensions to the two investors, but has not yet received the full amounts that they undertook to invest. At the end of March, Lifewave is due to repay a loan of NIS 1 million Even if it makes the payment, it is not clear how it will finance its continued activity. The company is traded on the Maintenance List, at a market cap of NIS 9 million.