NEW YORK and LONDON, May 1,
2020 /PRNewswire/ -- Akazoo S.A. (NASDAQ: SONG)
("Akazoo" or the "Company") today announced that its Board of
Directors (the "Board") has appointed Michael Knott as the Company's interim Chief
Executive Officer, effective immediately. This follows the decision
by the Board to terminate Apostolos N.
Zervos as Chief Executive Officer for cause. The Board has
also requested that Mr. Zervos resign as a member of the Board.
As previously announced on April 22,
2020, Akazoo formed a special committee of independent
directors (the "Special Committee") to conduct an investigation
into allegations in a report released by Quintessential Capital
Management (the "QCM Report"). As part of the investigation, the
Special Committee found evidence of conduct that the Special
Committee believed to be inconsistent with the Company's policies,
including a lack of cooperation in the investigation. The Board's
decision to terminate Mr. Zervos was made following a
recommendation from the Special Committee in light of these
findings. The appointment of Mr. Knott will help facilitate the
continued operations of the Company while the Special Committee
completes its work.
Michael Knott is a Senior
Managing Director in the Corporate Finance division at FTI
Consulting and is based in London.
Mr. Knott leads the Telecom, Media and Technology (TMT) practice in
Europe, the Middle East and Africa (EMEA). He is an experienced telecom,
media and technology advisor with 30 years of experience in
transaction advisory, strategy and business consulting, performance
improvement and business transformation.
Update on Special Committee Investigation; Non-Reliance on
Previously Issued Financial Statements
As part of the ongoing investigation, the Special Committee has
been unable to verify certain operational and financial information
previously reported by the Company. Accordingly, the following
financial statements should no longer be relied upon due to the
possibility that such financial statements contain material
errors:
- The financial statements of Akazoo Limited for the years ended
December 31, 2018, 2017 and 2016 (and
any interim periods therein) audited by the Company's former
independent registered public accounting firm included or
incorporated by reference in the Company's Shell Company Report on
Form 20-F filed with the U.S. Securities and Exchange Commission
(the "SEC") on September 17,
2019;
- Akazoo Limited for the three- and six-month periods ended
June 30, 2019 and 2018 included in
the Company's Report on Form 6-K furnished to the SEC on
September 27, 2019; and
- The Company for the three- and nine-month periods ended
September 30, 2019 and 2018 included
in the Company's Report on Form 6-K furnished to the SEC on
December 9, 2019.
As a result, the Company was unable to file its Form 20-F for
the year ended December 31, 2019, by
April 30, 2020, without unreasonable
effort or expense.
The Company will provide additional updates regarding these
matters in due course.
Forward-Looking Statements
This release contains certain forward-looking statements within
the meaning of the "safe harbor" provisions of the Private
Securities Litigation Reform Act of 1995, as amended, based on the
current expectations, estimates and projections of the Company
about its operations, industry, financial condition, performance,
results of operations, and liquidity. Forward-looking statements
can be identified by the fact that they do not relate strictly to
historical or current facts. Statements containing words such as
"may," "improve," "could," "believe," "anticipate," "expect,"
"intend," "plan," "project," "projections," "business outlook,"
"guidance," "estimate," or similar expressions constitute
forward-looking statements. Forward-looking statements represent
management's current expectations or predictions of future
conditions, events or results. These forward-looking statements
include, but are not limited to statements about, or are based upon
assumptions regarding, the Company's strategies and future
financial performance; reliance on its previously issued financial
statements; expectations or estimates about future business plans,
corporate governance, growth, or other objectives. You are
cautioned not to place undue reliance on these forward- looking
statements, which reflect management's good faith beliefs,
assumptions and expectations only as of the date hereof. Any such
forward-looking statements are not guarantees of future performance
or results and involve risks and uncertainties that may cause
actual performance and results to differ materially from those
predicted, many of which are beyond the Company's control. Reported
results should not be considered an indication of future
performance. Except as required by law, we undertake no obligation
to publicly release the results of any revision or update to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
Media Contacts
Joele
Frank, Wilkinson Brimmer Katcher
Greg Klassen / Allison Sobel
212-355-4449
Related Links
http://www.akazoo.com
View original
content:http://www.prnewswire.com/news-releases/akazoo-appoints-michael-knott-as-interim-ceo-301050976.html
SOURCE Akazoo S.A.