Telit Communications PLC (LON:TCM) rose on Monday following news the firm has agreed settlement terms with the London Stock Exchange for a public censure and a fine of £350,000, which has been waived in full, relating to breaches of rules 3 and 31 of the AIM Rules for Companies.
The AIM-listed global enabler of the Internet of Things (IoT) pointed out that the events leading up to the censure related to the actions of Oozi Cats, who was the CEO at the time of the company's Admission to AIM up until his resignation in August 2017.
It added that the censure related specifically to the company's failures of disclosure regarding his indictment in the US or previous variations of his name.
Telit said it has subsequently entirely reconstituted its board and as noted in the London Stock Exchange's statement, has fully cooperated in its investigation.
The company noted the Exchange recognised that, in the particular circumstances of this case, the company and its advisers faced real difficulties in being able to reasonably uncover information relating to the former CEO's historical indictment.
Given these specific circumstances, it added, the Exchange decided to waive the fine in full.
In a separate announcement, Telit also said that Marco Patuano, the former CEO of Telecom Italia and of Edizone, has agreed to join its board as a non-executive director - subject to satisfaction of customary regulatory due diligence and disclosures.
The group added that Adam Power, one of its current non-executive directors, has resigned from the board with immediate effect as he is moving to Australia where he will be taking up a new full-time executive role, the terms of which preclude him remaining on the Telit board.
In afternoon trading, Telit shares were 4.3% higher at 166.80p.
-- Adds new director appointment, updates share price --