Aeronautics Execs Summoned for a Hearing Following Criminal Investigation
In September 2017, Israeli Police and the country’s Ministry of Defense launched an investigation into a deal the dronemaker signed with a “key customer”
Troubled Israeli dronemaker Aeronautics Ltd. announced on Wednesday it was summoned for a hearing by the Israeli State Attorney in a filing to the Tel Aviv Stock Exchange. The hearing is the next step in a criminal investigation launched in September 2017. An Israeli court issued a sweeping gag order on all information pertaining to the investigation.
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Aeronautics specializes in the development of unmanned aerial vehicles (UAV) for military use and has over 45 customers worldwide.
The investigation was conducted by Israel Police’s unit for serious and international crimes in collaboration with the Israeli Ministry of Defense, and concerns a deal the dronemaker signed with a “key customer.”
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The ongoing investigation has been hampering several of the company’s deals and damaging its performance on the stock exchange. Aeronautics' stock has lost over 61% of its value since the company listed on Tel Aviv in June 2017. The company’s stock is currently down 5.97%.
Earlier this month, Aeronautics announced it is rejecting a $116.6 million (NIS 430 million) offer for its acquisition by Israeli defense technology contractor Rafael Advanced Defense Systems Ltd. and Israeli businessman Avihai Stolero, citing a low valuation.