On May 23, RiT Technologies provided a bleak update of the company’s financial status. “No progress was made relating to the collection of the overdue debts of RiT CIS [Russia],” the company said. Further, the company’s request for a $3-million loan from its controlling shareholder Stins Coman “was not fulfilled up to now,” RiT said. “Under the current circumstnaces, the company believes there is a substantial doubt about its ability to continue operations as a going concern,” it said.
In March, RiT warned that it had a negative cash-flow status. At that time the company explained it was experiencing collection problems from its distributor in Russia caused by that region’s financial situation.
On May 23, the company also announced that Hanan Samet had resigned from its board of directors, leaving the board’s chair, Sergey Anisimov, as the only currently serving board member. The company’s president and chief executive officer, Yossi Ben Harosh said, “As reflected in the last business updates, the company is financially struggling and we keep actively looking for financial solutions including M&A.”
