Microbot Medical Announces Settlement and Release Agreement, Effectively Resolving all Associated Legal Matters
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The settlement of the lawsuit involving Microbot Medical Inc. and the aforementioned entities is a significant legal development, as it concludes a dispute that dates back to 2020. The fact that the insurance carrier is covering the cash payable to the plaintiffs indicates that the company had the foresight to secure adequate insurance coverage for such contingencies. This is a prudent risk management strategy that companies often employ to mitigate potential financial liabilities arising from legal challenges.
From a legal perspective, the closure of this case removes a degree of uncertainty and potential distraction for the company's management. It also eliminates the risk of any financial judgment that could have adversely affected the company's financial health, had the insurance not covered the settlement. This resolution allows Microbot Medical to focus on its core business activities without the overhang of litigation.
For investors, the resolution of this lawsuit is a positive development, as it preserves the company's cash reserves and balance sheet integrity. The assurance that the settlement will not impact Microbot's financial position is crucial, as it suggests that the company's operational funding and investment in research and development, such as the LIBERTY® Endovascular Robotic Surgical System, will not be compromised.
Furthermore, the announcement indicates a forward-looking strategy focused on regulatory and clinical milestones, which are critical value drivers in the medical device industry. The upcoming IDE submission and clinical trial commencement are pivotal events that could significantly influence the company's valuation and future revenue potential. Investors typically monitor these developments closely, as they can serve as key indicators of a company's progress and likelihood of commercial success.
From a market standpoint, the resolution of legal disputes can be interpreted as a signal of stability and good governance. For a company like Microbot Medical, which operates in the highly competitive and heavily regulated medical device sector, maintaining a clear focus on product development and regulatory approvals is essential for gaining a competitive edge. The company's ability to navigate through legal challenges without financial repercussions could bolster investor confidence and enhance its reputation in the eyes of stakeholders.
Moreover, by safeguarding its cash position, Microbot Medical ensures that it has sufficient capital to invest in market research, product innovation and expansion strategies. This is particularly relevant as the medical device industry is characterized by rapid technological advancements and the need for continuous investment in innovation to meet evolving healthcare demands.
All of the cash payable to the plaintiffs in the settlement will be covered by Microbot’s insurance carrier and will not impact company's cash position
BRAINTREE, Mass., Jan. 30, 2024 (GLOBE NEWSWIRE) -- Microbot Medical Inc. (Nasdaq: MBOT), developer of the innovative LIBERTY® Endovascular Robotic Surgical System, today announced it has signed a Settlement Agreement and Release with Empery Asset Master Ltd., Empery Tax Efficient, LP, Empery Tax Efficient II, LP, Hudson Bay Master Fund Ltd. that resolves all claims asserted against the Company by these entities in a lawsuit filed in 2020 relating to a June 2017 securities purchase agreement.
All of the cash payable to the plaintiffs in the settlement, representing over half of the settlement amount, will be covered by Microbot’s insurance carrier. This arrangement ensures that the settlement will not impact the company's cash position or its balance sheet.
"We believe that resolving this matter while maintaining our cash position is in the best interest of our shareholders, as it allows us to continue to move forward with focus on the upcoming milestones, including our IDE submission with the FDA and planned commencement of our first in human clinical trial," said Harel Gadot, CEO, President and Chairman of Microbot Medical.
About Microbot Medical
Microbot Medical Inc. (NASDAQ: MBOT) is a pre-clinical medical device company that specializes in transformational micro-robotic technologies, with the goals of improving clinical outcomes for patients and increasing accessibility through the natural and artificial lumens within the human body.
The LIBERTY Endovascular Robotic Surgical System aims to improve the way surgical robotics are being used in endovascular procedures today, by eliminating the need for large, cumbersome, and expensive capital equipment, while reducing radiation exposure and physician strain. The Company believes the LIBERTY Endovascular Robotic Surgical System’s remote operation has the potential to be the first system to democratize endovascular interventional procedures.
Further information about Microbot Medical is available at http://www.microbotmedical.com.
Safe Harbor
Statements to future financial and/or operating results, future growth in research, technology, clinical development, and potential opportunities for Microbot Medical Inc. and its subsidiaries, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Federal securities laws. Any statements that are not historical fact (including, but not limited to statements that contain words such as “will,” “believes,” “plans,” “anticipates,” “expects” and “estimates”) should also be considered to be forward-looking statements. Forward-looking statements involve risks and uncertainties, including, without limitation, market conditions, risks inherent in the development and/or commercialization of potential products, including LIBERTY, the outcome of its studies to evaluate LIBERTY, whether the Company’s core business focus program and cost reduction plan are sufficient to enable the Company to continue to focus on its LIBERTY technology while it stabilizes its financial condition and seeks additional working capital, any failure or inability to recruit physicians and clinicians to serve as primary investigators to conduct regulatory studies which could adversely affect or delay such studies, uncertainty in the results of pre-clinical and clinical trials or regulatory pathways and regulatory approvals, disruptions resulting from new and ongoing hostilities between Israel and the Palestinians, any lingering uncertainty resulting from the COVID-19 pandemic, need and ability to obtain future capital, and maintenance of intellectual property rights. Additional information on risks facing Microbot Medical can be found under the heading “Risk Factors” in Microbot Medical’s periodic reports filed with the Securities and Exchange Commission (SEC), which are available on the SEC’s web site at www.sec.gov. Microbot Medical disclaims any intent or obligation to update these forward-looking statements, except as required by law.
Investor Contact:
Michal Efraty
+972-(0)52-3044404
IR@microbotmedical.com
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