Benzinga | Oct 22, 2021 09:20AM EDT

My Size 9.99% Shareholder Custodian Ventures Issues Letter Commenting On Lawsuit

Custodian Ventures LLC (together with its affiliates, "Custodian Ventures" or "we"), as the largest stockholder of My Size, Inc. ("MYSZ" or the "Company") (NASDAQ:MYSZ) prior to the Company's recent dilutive transaction, with an ownership interest of approximately 9.99% of the Company's outstanding shares, today commented on the lawsuit filed by MYSZ on October 20, 2021 to prevent Custodian Ventures from nominating director candidates and running an election contest at the Company's 2021 Annual Meeting of Stockholders ("Annual Meeting").



As a reminder, on May 12, 2021, Custodian Ventures nominated four highly-qualified and independent candidates for election to replace all four members of the MYSZ Board of Directors (the "Board") at the Company's next Annual Meeting.

David Lazar, Chief Executive Officer of Custodian Ventures, stated:

"The lawsuit filed by MYSZ is baseless and we intend on vigorously defending ourselves. This action appears to be a blatant entrenchment maneuver intended to disenfranchise Custodian Ventures and insulate Ronen Luzon and his boardroom allies, who have demonstrated a flagrant disregard for stockholders and their rights for years. We contend that the incumbent Board has irreparably impugned its credibility by weaponizing litigation in an attempt to silence a sizable stockholder and undermine corporate democracy. We urge stockholders not to be misled by this latest effort by MYSZ to distract stockholders from the reality that this Board:

* has overseen a Company whose stock price has declined by a staggering 98.7% since MYSZ was listed on Nasdaq in July 2016;

* issued nearly 20% of the Company's then outstanding shares in a dilutive May 2021 transaction that appears to have had no bona fide business purpose other than to "buy the vote" in advance of a potential election contest with Custodian Ventures by putting the shares in the hands of a Shoshana Zigdon, a former insider whose husband Yitzhak Zigdon has been reported as having been closely involved in the business as well and who at one point had an Interpol listing saying he is wanted by the United States on charges of conspiracy to commit securities fraud, wire fraud and mail fraud;1

* refused to produce any documents substantiating the legitimacy of the Zigdon transaction and instead used the Company's finite resources to apparently give the Company's external counsel carte blanche approval to erect roadblocks to our legitimate information requests under Delaware law;2 and

* failed to hold the Annual Meeting within thirteen months of its prior annual meeting and in violation of the Company's historical practice and statutorily required timeframe, forcing Custodian Ventures to file suit in the Court of Chancery of the State of Delaware on September 22, 2021 to protect stockholder rights and compel MYSZ to promptly hold the Annual Meeting for the election of directors.3

We believe stockholders should be equally alarmed that the Board is wasting the Company's finite resources on under-handed efforts to harm Custodian Ventures and thwart a fair, open election contest. Fortunately for stockholders, we will not allow the Board to use scorched-earth litigation and reputational attacks as a means of escaping accountability and remain fully committed to offering stockholders the opportunity to vote for sorely-needed change at this year's Annual Meeting. It is our belief that with a reconstituted and independent Board at the helm, there remains tremendous value that can ultimately be unlocked at MYSZ."

Please visit www.saratogaproxy.com/mysz/to learn more about the Custodian Ventures slate and to share your feedback.