Sol-Gel Technologies Ltd 6-K, filed Apr 27, 2020
Sol-Gel Technologies Ltd. (SLGL)
6-K
2020-04-27
For: 2020-04-27
View Original
Added on
April 08, 2026
About this 6-K
Sol-Gel Technologies Ltd filed this 6-K on April 27, 2020.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign Private Issuer
Pursuant to Rule 13a-16 or 15d-16
Under the Securities Exchange Act of 1934
For the month of April 2020
Commission File Number 001-38367
SOL-GEL TECHNOLOGIES LTD.
(Translation of registrant’s name into English)
7 Golda Meir Street
Ness Ziona 7403650, Israel
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F ☒ Form 40-F ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule
101(b)(7): ☐
INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K
Attached hereto and incorporated by reference herein are the following documents:
This Form 6-K and related exhibits are hereby incorporated by reference into the Company's Registration Statement on Form S-8
(Registration No. 333-223915) and its Registration Statement on Form F-3 (Registration No. 333-230564).
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
|
|
SOL-GEL TECHNOLOGIES LTD.
|
|
|
|
|
|
|
Date: April 27, 2020
|
By:
|
/s/ Gilad Mamlok
|
|
|
|
Gilad Mamlok
|
|
|
|
Chief Financial Officer
|
2
Exhibit 99.1
SOL-GEL TECHNOLOGIES LTD.
7 Golda Meir St., Weizmann Science Park, Ness Ziona, 7403650, Israel
+972-8-931-3433
________________________________
NOTICE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON MAY 27, 2020
________________________
Dear Sol-Gel Technologies Ltd. Shareholders:
We cordially invite you to attend an Annual Meeting of Shareholders, or the Meeting, of Sol-Gel Technologies Ltd., or the Company, to be held at 11:00 am (Israel time) on
Wednesday, May 27, 2020, at our offices at 7 Golda Meir St., Weizmann Science Park, Ness Ziona, Israel.
The Meeting is being called for the following purposes:
|
(1)
|
To appoint Kesselman & Kesselman, certified public accountants in Israel and a member of PricewaterhouseCoopers International Limited, as the Company’s independent auditors for the year
2020 and for an additional period until the following annual general meeting; and to inform the shareholders of the aggregate compensation paid to the auditors for the year ended December 31, 2019;
|
|
|
(2)
|
To approve the re-election of Ms. Hani Lerman and Dr. Alon Seri-Levy as Class II directors to the board of directors of the Company (the
"Board of Directors"), each for an additional three-year term until the annual general meeting to be held in 2023;
|
|
|
(3)
|
To approve the annual cash bonus plan for 2020 for Dr. Alon Seri-Levy, the Company's chief executive officer; and
|
|
|
|
(4)
|
To approve an amendment to the Compensation Policy of the Company.
|
In addition, shareholders at the Meeting will have an opportunity to review and ask questions regarding the financial statements of the Company for the fiscal year ended
December 31, 2019.
The Company is currently unaware of any other matters that may be raised at the Meeting. Should any other matters be properly raised at the Meeting, the persons designated as
proxies shall vote according to their own judgment on those matters.
Our Board of Directors unanimously recommends that you vote in favor of each of the above proposals, which are described in the attached Proxy Statement.
Shareholders of record at the close of business on Tuesday, April 21, 2020 are entitled to notice of
and to vote at the Meeting.
Whether or not you plan to attend the Meeting, it is important that your shares be represented and voted at the Meeting. Accordingly, after reading the Notice of Annual Meeting of
Shareholders and accompanying Proxy Statement, please mark, date, sign and mail the enclosed proxy or voting instruction form as promptly as possible. If voting by mail, the proxy must be received by Broadridge Financial Solutions, Inc. ("Broadridge") or at our registered office at least 48 hours (or such shorter period as the Chairman of the Meeting may determine) prior to the appointed time of the Meeting to be validly included in the tally of
ordinary shares voted at the Meeting. An earlier deadline may apply to receipt of your voting instruction form, if indicated therein. Detailed proxy voting instructions are provided both in the Proxy Statement and on the enclosed proxy card and
voting instruction form. Proxies may also be executed electronically via www.proxyvote.com by utilizing the control number sent to you. Shareholders who hold their shares in street name may be able to utilize the control number sent to them to submit
their voting instruction to their brokers, trustees or nominees by other means, if so indicated on their voting instruction form. An electronic copy of the enclosed proxy materials will also be available for viewing at http://ir.sol-gel.com/.
Sol-Gel Technologies Ltd.
SOL-GEL TECHNOLOGIES LTD.
7 Golda Meir St., Weizmann Science Park, Ness Ziona, 7403650, Israel
+972-8-931-3433
__________________________
PROXY STATEMENT
__________________________
ANNUAL MEETING OF SHAREHOLDERS
This Proxy Statement is being furnished in connection with the solicitation of proxies on behalf of the Board of Directors, or the Board, of Sol-Gel Technologies Ltd., which we
refer to as Sol-Gel or the Company, to be voted at an Annual Meeting of Shareholders, or the Meeting, and at any adjournment thereof, pursuant to the accompanying Notice of Annual Meeting of Shareholders. The Meeting will be held at 11:00 am (Israel
time) on Wednesday, May 27, 2020, at our offices at 7 Golda Meir St., Weizmann Science Park, Ness Ziona, Israel.
This Proxy Statement, the attached Notice of Annual Meeting of Shareholders and the enclosed proxy card or voting instruction card are being made available on or about, April 24,
2020 to holders of Sol-Gel ordinary shares.
You are entitled to receive notice of, and to vote at, the Meeting, if you hold ordinary shares as of the close of business on Tuesday, April 21, 2020, the record date for the
Meeting. You can vote your shares by attending the Meeting or by following the instructions under “How You Can Vote” below. Our Board urges you to vote your shares so that they will be counted at the Meeting or at any postponements or adjournments of
the Meeting.
Agenda Items
The Meeting is being called for the following purposes:
|
(1)
|
To appoint Kesselman & Kesselman, certified public accountants in Israel and a member of PricewaterhouseCoopers International Limited, as the Company’s independent auditors for the year
2020 and for an additional period until the following annual general meeting; and to inform the shareholders of the aggregate compensation paid to the auditors for the year ended December 31, 2019;
|
|
|
(2)
|
To approve the re-election of Ms. Hani Lerman and Dr. Alon Seri-Levy as Class II directors to the board of directors of the Company (the
"Board of Directors"), each for an additional three-year term until the annual general meeting to be held in 2023;
|
|
|
(3)
|
To approve the annual cash bonus plan for 2020 for Dr. Alon Seri-Levy, the Company's chief executive officer; and
|
|
| (4) |
To approve an amendment to the Compensation Policy of the Company.
|
In addition, shareholders at the Meeting will have an opportunity to review and ask questions regarding the financial statements of the Company for the fiscal year ended December
31, 2019.
The Company is currently unaware of any other matters that will come before the Meeting. Should any other matters be properly presented at the Meeting, the persons designated as
proxies shall vote according to their own judgment on those matters.
Board Recommendation
Our Board unanimously recommends that you vote “FOR” each of the
above proposals.
Quorum
On Tuesday, April 21, 2020, we had 22,972,948 ordinary shares issued and outstanding. Each ordinary share outstanding as of the close of business on the record date, Tuesday, April
21, 2020, is entitled to one vote upon each of the proposals to be presented at the Meeting. Under our Articles of Association, the Meeting will be properly convened if at least two shareholders attend the Meeting in person or sign and return
proxies, provided that they hold shares representing thirty three and one-third (33.33%) or more of our voting power. If a quorum is not present within half an hour from the time scheduled for the Meeting, the Meeting will be adjourned for one week
(to the same day, time and place), or to a day, time and place determined by the Board of Directors (which may be earlier or later than said time). At such adjourned meeting the presence of any number of shareholders in person or by proxy (regardless
of the voting power represented by their shares) will constitute a quorum for the business which the original Annual Meeting was called.
Vote Required for Approval of the Proposals
The affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy and voting thereon (which excludes abstentions) is necessary
for the approval of each of the proposals. Apart from for the purpose of determining a quorum, broker non-votes will not be counted as present and are not entitled to vote.
In addition, the approval of Proposals 3 and 4 requires that either of the following two voting requirements be met as part of the approval by an ordinary majority of shares
present and voting thereon:
|
|
●
|
approval by a majority of the votes of shareholders who are not controlling shareholders and who do not have a personal interest in the approval of the proposal that is voted at the Meeting,
excluding abstentions; or
|
|
|
●
|
the total number of shares held by non-controlling shareholders or anyone on their behalf who do not have a personal interest in the proposal (as described in the previous bullet-point) that
is voted against the proposal does not exceed two percent (2%) of the aggregate voting rights in our Company.
|
For purposes of each of the proposals, a “controlling shareholder” is any shareholder that has the ability to direct the Company’s activities (other than by means of being a
director or other office holder of the Company). A person is presumed to be a controlling shareholder if the person holds or controls, alone or together with others, one-half or more of any one of the “means of control” of the Company. “Means of
control” is defined as any one of the following: (i) the right to vote at a general meeting of the Company or (ii) the right to appoint directors of the Company or its chief executive officer.
A “personal interest” of a shareholder, for purposes of each of the proposals, is (1) a shareholder’s personal interest in the approval of an act or a transaction of the Company,
including (i) the personal interest of any of his or her relatives (which includes for these purposes foregoing shareholder’s spouse, siblings, parents, grandparents, descendants, and spouse’s descendants, siblings, and parents, and the spouse of any
of the foregoing); (ii) a personal interest of a corporation in which a shareholder or any of his/her aforementioned relatives serves as a director or the chief executive officer, owns at least 5% of its issued share capital or its voting rights or
has the right to appoint a director or chief executive officer; and (iii) a personal interest of an individual voting via a power of attorney given by a third party (even if the empowering shareholder has no personal interest), and the vote of an
attorney-in-fact shall be considered a personal interest vote if the empowering shareholder has a personal interest, and all with no regard as to whether the attorney-in-fact has voting discretion or not, but (2) excludes a personal interest arising
solely from the fact of holding shares in the Company. A personal interest excludes a personal interest that does not derive from relationship with a controlling shareholder.
2
A controlling shareholder and a shareholder that has a personal interest are qualified to participate in the vote on each of the proposals; however, the vote of such
shareholders may not be counted towards the majority requirement described in the first bullet point above and will not count towards the 2% threshold described in the second bullet point above.
A shareholder must inform our Company before the vote (or if voting by proxy, indicate on the proxy card) whether or not such shareholder is a
controlling shareholder or has a personal interest, and failure to do so disqualifies the shareholder from participating in the vote on Proposals 3 and 4, as the case may be. If you believe that you, or a
related party of yours, is a controlling shareholder or possesses a personal interest and you wish to participate in the vote on either proposal, you should indicate the existence of a personal interest on the enclosed proxy card or on the voting
instruction form (if applicable) and should furthermore contact our Corporate Controller, Eyal Ben-Or, at +972-8-931-3437 or Eyal.Ben-Or@sol-gel.com, who will advise you as to how to submit your vote for that proposal. If you hold your shares in “street name” (i.e., shares that are held through a bank, broker or other nominee) and believe that you are a controlling shareholder or possess a personal interest in the approval
of either proposal, you may also contact the representative managing your account, who could then contact our Corporate Controller on your behalf.
How You Can Vote
You can vote your shares by attending the Meeting or by completing and signing a proxy card or voting instruction form. If you are a shareholder of record, that is, your shares
are registered directly in your name with our transfer agent, American Stock Transfer & Trust Company, these proxy materials are being sent directly to you. The form of proxy card that has been sent to you can be completed, signed and returned in
the envelope that was enclosed with it, or executed electronically via www.proxyvote.com by utilizing the control number sent to you. This provides the primary means for authorizing the voting of your ordinary shares without attending the
Meeting in person. You may change your mind and cancel your proxy card by sending us written notice, by signing and returning a proxy card with a later date, or by voting in person or by proxy at the Meeting. We will not be able to count a proxy card
unless we receive it at our principal executive offices at 7 Golda Meir St., Weizmann Science Park, Ness Ziona, 7403650, Israel, or Broadridge receives it in the enclosed envelope, not later than 4:59 pm (Israel time) on Tuesday, May 26, 2020 or such
shorter period prior to the Meeting as the Chairman of the Meeting may determine.
If your ordinary shares are held in a brokerage account or by a trustee or nominee, you are considered to be the beneficial owner of shares held in “street name,” and these
proxy materials are being forwarded to you together with a voting instruction form by the broker, trustee or nominee or an agent hired by the broker, trustee or nominee. Please follow the instructions provided by your broker, trustee or nominee to
direct them how to vote your shares. Shareholders who hold their shares in street name may be able to utilize the control number appearing on their voting instruction form to submit their voting instruction to their brokers, trustees or nominees by
other means, if so indicated on their voting instruction form. All votes should be submitted by 4:59 pm (Israel time) on Tuesday, May 26, 2020 (or such other deadline as may be indicated on the voting instruction form) in order to be counted towards
the tally of ordinary shares voted at the Meeting (unless the Chairman of the Meeting extends that deadline). Alternatively, if you wish to attend the Meeting and vote in person, you must obtain a “legal proxy” from the broker, trustee or nominee
that holds your shares, giving you the right to vote the shares at the Meeting.
If you provide specific instructions (by marking a box) with regard to the proposals, your shares will be voted as you instruct. If you sign and return your proxy card without
giving specific instructions with respect to a particular proposal, your shares may be voted in favor of the proposal, in accordance with the recommendation of the Board. However, if you are a beneficial owner of shares and do not specify how you
want to vote on your voting instruction form, your broker will not be permitted to instruct the depositary to cast a vote with respect to that proposal (commonly referred to as a “broker non-vote”). In that circumstance, the shares held by you will
be included in determining the presence of a quorum at the Meeting, but are not considered “present” for the purpose of voting on the relevant proposal. Such shares have no impact on the outcome of the voting on such proposal. If your shares are held
of record by a bank, broker, or other nominee, we urge you to give instructions to your bank, broker, or other nominee as to how your shares should be voted so that you thereby participate in the voting on these important matters. In all cases, you
must remember to indicate in writing and/or contact the Company if you are a controlling shareholder or have a personal interest in the approval of Proposals 3 or 4, respectively. If you sign and return your proxy card or voting instruction form, the
persons named as proxies will vote in their discretion on any other matters that properly come before the Meeting.
3
Who Can Vote
You are entitled to receive notice of the Meeting and to vote at the Meeting if you are a shareholder of record at the close of business on Tuesday, April 21, 2020. You are also
entitled to notice of the Meeting and to vote at the Meeting if you held ordinary shares through a bank, broker or other nominee that is one of our shareholders of record at the close of business on Tuesday, April 21, 2020, or which appear in the
participant listing of a securities depository on that date.
Revocation of a Proxy
Shareholders may revoke the authority granted by their execution of proxies at any time before the effective exercise thereof by filing with us a written notice of revocation or
duly executed proxy bearing a later date, or by voting in person at the Meeting. Unless otherwise indicated on the form of proxy, shares represented by any proxy in the enclosed form, if the proxy is properly executed and received by the Company at
least 48 hours (or such shorter period as the Chairman of the Meeting may determine) prior to the Meeting, will be voted in favor of the proposal and any other matters that may be presented to the Meeting, as described above.
Solicitation of Proxies
Proxies are being distributed to shareholders on or about Friday, April 24, 2020. Certain officers, directors, employees, and agents of the Company, none of whom will receive
additional compensation therefor, may solicit proxies by telephone, email, or other personal contact. We will bear the cost for the solicitation of the proxies, including postage, printing, and handling, and will reimburse the reasonable expenses of
brokerage firms and others for forwarding material to beneficial owners of shares. In addition, we have retained The Proxy Advisory Group, LLC to assist in the solicitation of proxies.
Voting Results
The final voting results will be tallied by the Company’s Corporate Controller based on the information provided by the Company’s transfer agent or otherwise, and the overall
results of the Meeting will be published following the Meeting in a report on Form 6-K that will be furnished to the U.S. Securities and Exchange Commission, or the SEC.
Availability of Proxy Materials
Copies of the proxy card, the notice of the Meeting and this Proxy Statement are available at the “Investor Relations” portion of our Company’s website, http://ir.sol-gel.com/.
The contents of that website are not a part of this Proxy Statement.
4
PROPOSAL NO. 1
APPOINTMENT OF AUDITORS
Under the Israeli Companies Law (the “Companies Law”) and the Company’s Amended and Restated Articles of Association (the “Articles”), the shareholders of the Company are authorized to appoint the Company’s independent auditors. Under the Articles, the Board of Directors or a committee of the Board of Directors if such determination
was delegated to a committee, is authorized to determine the independent auditors’ remuneration. In addition, the Listing Rules of The NASDAQ Stock Market (“Nasdaq”) require that the Company’s audit committee
approve the re-appointment and remuneration of the independent auditors.
At the Meeting, shareholders will be asked to approve the re-appointment of Kesselman & Kesselman, certified public accountants in Israel and a member of
PricewaterhouseCoopers International Limited, as the Company's auditors for the year ending December 31, 2020 and for an additional period until the next annual general meeting. Kesselman & Kesselman has no relationship with the Company or with
any affiliate of the Company except to provide audit services and tax consulting services.
Information on fees paid to the Company's independent auditors may be found in the Company's Annual Report on Form 20-F filed with the Securities and Exchange Commission.
It is proposed that the following resolution be adopted at the Meeting:
“RESOLVED, that Kesselman & Kesselman be, and hereby is, appointed as the independent auditors of the Company for the year 2020 and
for an additional period until the next annual general meeting.”
The affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy and voting thereon (excluding abstentions) is required to
adopt the proposed resolution.
The Board of Directors and audit committee recommend that the shareholders vote “FOR” the proposed resolution.
PROPOSAL NO. 2
RE-ELECTION OF MS. HANI LERMAN AND DR. ALON SERI-LEVY AS CLASS II DIRECTORS
According to the Articles, the Company's non-external directors are divided into three classes with staggered three-year terms. Each class consists, as nearly equal in number as
practicable, of one-third of the total number of directors constituting the entire Board (other than the external directors). The term of one class of directors expires at each annual general meeting, at which each of the successors elected to replace the directors of the class whose term expired at such annual general meeting shall be elected to hold office until the third annual general meeting next succeeding his or her election and until
his or her respective successor has been elected and qualified.
At the Meeting, the terms of the Company’s two Class II directors, Ms. Hani Lerman and Dr. Alon Seri-Levy, expire, and the Board of
Directors has nominated each of Ms. Hani Lerman and Dr. Alon Seri-Levy to be re-elected as a director for an additional three-year term.
Proxies (other than those directing the proxy holders not to vote for the listed nominees) will be voted for the re-election of each of the nominees to hold office until the 2023
annual general meeting, or such earlier time as each may resign or be removed from the Board of Directors pursuant to the terms of the Articles. The Company is not aware of any reason why any of the nominees, if elected, should not be able to serve
as a director.
Each of Ms. Hani Lerman and Dr. Alon Seri-Levy has attested to the Board of Directors and to the Company that he meets all the
requirements in connection with the election of directors under the Companies Law, per the statement substantially in the form attached hereto as Appendix A.
5
The nominees to serve on the Board of Directors are below and the following information with respect to the nominees is supplied based upon the information furnished to the Company by the nominees:
|
|
Name
|
Age
|
Position
|
|
|
Hani Lerman
|
47
|
Director
|
|
|
Alon Seri-Levy
|
58
|
Chief Executive Officer and Director
|
Ms. Hani Lerman became a member of our Board
immediately following pricing of our initial public offering. Ms. Lerman has served as chief financial officer at Arkin Holdings since 2015. From 2010 until 2014, Ms. Lerman served as chief financial officer of Sansa Security (f/k/a Discretix
Technologies), and from 2006 until 2010, she served as chief financial officer of Storwize, which was acquired by IBM in 2010. She serves as a board member of Exalenz Bioscience and of Sphera Global Healthcare. She holds a Master's degree in
business administration with a major in finance from Tel-Aviv University, Israel, and a B.A. in economics and accounting from Tel-Aviv University, Israel.
Dr. Alon Seri-Levy co-founded Sol-Gel and has served
as our Chief Executive Officer since our inception in 1997 and as a member of our Board of Directors until 2014. Prior to founding Sol-Gel, Dr. Seri-Levy established the computer-aided drug design department at Peptor Ltd., an Israeli research and
development company that specialized in the development of peptide-based drug products. Dr. Seri-Levy holds a Ph.D. in Chemistry (summa cum laude) from The Hebrew University of Jerusalem, Israel, and conducted his post-doctoral studies at Oxford
University, United Kingdom. Dr. Seri-Levy was appointed to our Board immediately following the pricing of our initial public offering.
It is proposed that the following resolution be adopted at the Meeting:
“RESOLVED, that Ms. Hani Lerman and Dr. Alon Seri-Levy be, and each of them hereby is,
elected to hold office as a director of the Company for an additional three-year term until the annual general meeting to be held in 2023.”
The affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy and voting thereon (excluding abstentions) is required to
adopt the proposed resolution.
The Board of Directors recommends that the shareholders vote “FOR” the proposed resolution.
PROPOSAL NO. 3
APPROVAL OF ANNUAL CASH BONUS PLAN FOR 2020 FOR DR. ALON SERI-LEVY OUR CHIEF EXECUTIVE OFFICER
APPROVAL OF ANNUAL CASH BONUS PLAN FOR 2020 FOR DR. ALON SERI-LEVY OUR CHIEF EXECUTIVE OFFICER
Annual cash bonuses are intended to promote the Company’s work plan and business strategy by rewarding officers for the achievement of the Company’s business and financial goals
through teamwork and collaboration.
Consistent with the Company’s compensation policy and subject to the limitations set forth therein, the Company may determine with respect to each year, target and maximum annual
cash bonuses as well as the related objectives and related weights, including applicable thresholds and the formula for calculating the annual cash bonuses to be granted to the Company’s chief executive officer. The compensation committee and the
Board have approved, and are recommending that the shareholders approve, the following annual cash bonus plan for 2020 for Dr. Alon Seri-Levy, the Company’s chief executive officer.
Eligibility
Dr. Seri-Levy would be eligible to receive the annual cash bonus for the year 2020, without the need for further shareholder approval, subject to the following: (i) continuous
employment of Dr. Seri-Levy at the Company through December 31, 2020; (ii) achievement of the Company objectives described below; (iii) all other terms of the bonus plan as set forth below; and (iv) the limitations of the compensation policy and
applicable law.
6
Company Objectives
The compensation committee and the Board determined certain clinical and regulatory quantifiable performance indicators as the Company’s goals for 2020 (the "Company's 2020 Objectives"). Similar to the terms of the cash bonus plan approved by the compensation committee and the Board for other officers of the Company for 2020, Dr. Seri-Levy shall be entitled to annual
cash bonus for 2020 pro rata based on the percentage of the Company's 2020 Objectives achieved by December 31, 2020.
Target Annual Cash Bonus
The target annual bonus for Dr. Seri-Levy, which is the annual cash bonus amount that Dr. Seri-Levy will be entitled to receive upon achievement of the Company's 2020 Objectives as
described under "Calculation of Bonus" below (pro rata based on percentage of the Company’s Objectives satisfied) will be up to six monthly salaries (the "Target Bonus"). Dr. Seri-Levy's monthly salary is NIS
90,000.
Calculation of Bonus
The total amount to be paid to Dr. Seri-Levy, out of the Target Bonus, shall be calculated as follows:
|
•
|
80% of the Target Bonus shall be paid upon achievement of the Company's 2020 Objectives to be paid pro rata based on percentage of the Company’s Objectives satisfied.
|
|
•
|
20% of the Target Bonus shall be paid at the recommendation of the Chairman of the Board and approval of the compensation committee and Board of Directors at their discretion taking into
account his performance for the year.
|
It is proposed that the following resolutions be adopted at the Meeting:
“RESOLVED, to approve the annual cash bonus plan for Dr. Seri-Levy, the Company’s chief executive officer, as described in
the Proxy Statement.”
The affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy and voting thereon (excluding abstentions) is required to
adopt the proposed resolution. In addition, the approval of the proposal requires that either of the following two voting requirements be met:
|
|
●
|
approval by a majority of the votes of shareholders who are not controlling shareholders and who do not have a personal interest in the approval of the proposal that is voted at the Meeting,
excluding abstentions; or
|
|
|
|
|
|
|
●
|
the total number of shares held by non-controlling shareholders or anyone on their behalf who do not have a personal interest in the proposal (as described in the previous bullet-point) that
is voted against the proposal does not exceed two percent (2%) of the aggregate voting rights in our Company.
|
The Board and the compensation committee recommend that the shareholders vote “FOR” the proposed resolution.
7
PROPOSAL NO. 4
APPROVAL OF AN AMENDMENT TO THE COMPANY’S COMPENSATION POLICY
Under the Companies Law, the terms of employment and service of officers and directors of public companies, such as the Company, must be determined in accordance with a directors
and officers compensation policy (the “Compensation Policy”) (except in limited circumstances set forth in the Companies Law). All companies subject to the Companies Law are required to review and re-approve their Compensation Policy based on the
guidelines specified in the Companies Law every three years.
On March 23, 2020, following the recommendation of the compensation committee, the Board of Directors approved an amendment to the Compensation Policy to increase the maximum
annual premium that may be paid by the Company for D&O liability insurance policies and to increase the maximum deductible amount per claim.
The Compensation Policy currently provides that the maximum premium that may be paid by the Company for D&O liability insurance policies is US $750,000 annually and a maximum
deductible amount per claim of US $1 million. In recent years, there have been significant changes in the D&O insurance policy market, in particular due to continued increase in class action lawsuits filed against companies traded on the U.S.
public markets. These changes have caused numerous traditional leading D&O insurance providers to limit their exposure to claims, leading to significantly increased premiums for D&O insurance policies, and in particular for companies in the
life science sector. As a result, the Company's compensation committee, followed by the Board, approved an amendment to the Compensation Policy to increase the maximum annual premium for D&O liability insurance policies from US $750,000 to US
$1.5 million and to increase the maximum deductible amount per claim from US $1 million to US $5 million.
It is proposed that the following resolutions be adopted at the Meeting:
“RESOLVED to approve an amendment to the Compensation Policy for the Company's directors and officers to increase the maximum premium for
D&O insurance policies to US $1.5 million annually and to increase the maximum deductible amount per claim to US $5 million.”
The affirmative vote of the holders of a majority of the voting power represented at the Meeting in person or by proxy and voting thereon (excluding abstentions) is required to
adopt the proposed resolution. In addition, the approval of the proposal requires that either of the following two voting requirements be met:
|
|
●
|
approval by a majority of the votes of shareholders who are not controlling shareholders and who do not have a personal interest in the approval of the proposal that is voted at the Meeting,
excluding abstentions; or
|
|
|
|
|
|
|
●
|
the total number of shares held by non-controlling shareholders or anyone on their behalf who do not have a personal interest in the proposal (as described in the previous bullet-point) that
is voted against the proposal does not exceed two percent (2%) of the aggregate voting rights in our Company.
|
The Board and the compensation committee recommend that the shareholders vote “FOR” the proposed resolution.
OTHER MATTERS
Our Board does not intend to bring any matters before the Meeting other than those specifically set forth in the Notice of Annual Meeting of Shareholders and knows of no matters to
be brought before the Meeting by others. If any other matters properly come before the Meeting, it is the intention of the persons named in the accompanying proxy to vote such proxy in accordance with their judgment and based on the recommendation of
the Board.
ADDITIONAL INFORMATION
The Company’s annual report on Form 20-F, filed with the SEC on March 24, 2020, is available for viewing and downloading on the SEC’s website at www.sec.gov as well as
under the Investor Relations section of the Company’s website at http://ir.sol-gel.com.
The Company is subject to the information reporting requirements of the Securities Exchange Act of 1934 (the “Exchange Act”) applicable to
foreign private issuers. The Company fulfills these requirements by filing reports with the SEC. The Company’s SEC filings are also available to the public on the SEC’s website at www.sec.gov. As a foreign private issuer, the Company is exempt
from the rules under the Exchange Act related to the furnishing and content of proxy statements. The circulation of this Proxy Statement should not be taken as an admission that the Company is subject to those proxy rules.
Ness Ziona, Israel
April 24, 2020
8
Appendix A - Form of Statement of a Candidate to Serve as a Director
The undersigned, ____________________, hereby declares to Sol-Gel Technologies Ltd. (the “Company”), effective as of ____________________________, as follows:
I am making this statement as required under Section 224B of the Israeli Companies Law, 5759-1999 (the “Israeli Companies Law”). Such provision requires that I make the statements
set forth below prior to, and as a condition to, the submission of my election as a director of the Company to the approval of the Company's shareholders.
I possess the necessary qualifications and skills and have the ability to dedicate the appropriate time for the purpose of performing my service as a director in the Company,
taking into account, among other things, the Company's special needs and its size.
My qualifications were presented to the Company. In addition, attached hereto is a biographical summary as contained in the Company's most recent Form 20-F, which includes a
description of my academic degrees, as well as previous experience relevant for the evaluation of my suitability to serve as a director.
I am not restricted from serving as a director of the Company under any items set forth in Sections 2261, 226A2 or 2273 of the Israeli Companies
Law, which include, among other things, restrictions relating to the appointment of a minor, a person who is legally incompetent, a person who was declared bankrupt, a person who has prior convictions or anyone whom the administrative enforcement
committee of the Israel Securities Law 5728-1968 (the “Israel Securities Law”) prohibits from serving as a director.
I am aware that this statement shall be presented at the Annual General Meeting of Shareholders of the Company in which my election shall be considered, and that pursuant to
Section 241 of the Israeli Companies Law it shall be kept in the Company’s registered office and shall be available for review by any person.
Should a concern arise of which I will be aware and/or that will be brought to my attention, pursuant to which I will no longer fulfill one or more of the requirements and/or the
declarations set forth above, I shall notify the Company immediately, in accordance with Section 227A of the Israeli Companies Law.
IN WITNESS WHEREOF, the undersigned has signed this statement as of the date set forth above.
Name: ________________________ Signature: ______________________
Date: _________________________
9
1 As of the date hereof, Section 226 of the Israeli Companies Law generally provides that a candidate shall not be appointed as a director of a public company (i) if the person was convicted of an offense not listed
below but the court determined that due to its nature, severity or circumstances, he/she is not fit to serve as a director of a public company for a period that the court determined which shall not exceed five years from judgment or (ii) if he/she
has been convicted of one or more offences specified below, unless five years have elapsed from the date the convicting judgment was granted or if the court has ruled, at the time of the conviction or thereafter, that he/she is not prevented from
serving as a director of a public company:
(1) offenses under Sections 290-297 (bribery), 392 (theft by an officer), 415 (obtaining a benefit by fraud), 418-420 (forgery), 422-428 (fraudulent
solicitation, false registration in the records of a legal entity, manager and employee offences in respect of a legal entity, concealment of information and misleading publication by a senior officer of a legal entity, fraud and breach of trust in a
legal entity, fraudulent concealment, blackmail using force, blackmail using threats) of the Israel Penal Law 5737-1997; and offences under sections 52C, 52D (use of inside information), 53(a) (offering shares to the public other than by way of a
prospectus, publication of a misleading detail in the prospectus or in the legal opinion attached thereto, failure to comply with the duty to submit immediate and period reports) and 54 (fraud in securities) of the Israel Securities Law;
(2) conviction by a court outside of the State of Israel of an offense of bribery, fraud, offenses of directors/managers in a corporate body or exploiting
inside information.
2 As of the date hereof, Section 226A of the Israeli Companies Law provides that if the administrative enforcement committee of the Israel Securities Authority has imposed on a person enforcement measures that
prohibited him/her from holding office as director of a public company, that person shall not be appointed as a director of a public company in which he/she is prohibited to serve as a director according to this measure.
3 As of the date hereof, Section 227 of the Israeli Companies Law provides that a candidate shall not be appointed as a director of a company if he/she is a minor, legally incompetent, was declared bankrupt
and not discharged, and with respect to a corporate body – in case of its voluntary dissolution or if a court order for its dissolution was granted.
10
Exhibit 99.2
Important Notice Regarding the Availability of Proxy Materials for the Annual Meeting:
The Notice and Proxy Statement is available at www.proxyvote.com.
|
|
SOL-GEL TECHNOLOGIES LTD.
Proxy for Annual Meeting of Shareholders
on May 27, 2020
Solicited on Behalf of the Board of Directors
The undersigned hereby appoints Alon Seri-Levy and Gilad Mamlok, and each of them, with full power of substitution and power to act alone, as proxies to vote all the ordinary shares which the undersigned would
be entitled to vote if personally present and acting at the Annual Meeting of Shareholders of Sol-Gel Technologies Ltd., to be held at 11:00 AM (Israel time) on May 27, 2020 at 7 Golda Meir St., Weizmann Science Park, Ness Ziona, 7403650,
Israel, and at any adjournments or postponements thereof, as follows:
This proxy, when properly executed, will be voted in the manner directed herein. If no such direction is made, this proxy will be voted in accordance with the Board of Directors'
recommendations.
|
Address Changes/Comments:
|
||
(If you noted any Address Changes/Comments above, please mark corresponding box on the reverse side.)
Continued and to be signed on reverse side
|
SOL-GEL TECHNOLOGIES LTD.
7 GOLDA MEIR ST., WEIZMANN SCIENCE PARK
NESS ZIONA, 7403650, ISRAEL
|
VOTE BY INTERNET - www.proxyvote.com
Use the Internet to transmit your voting instructions and for electronic delivery of information up until 11:59 p.m. Eastern Time the day before the cut-off
date or meeting date. Have your proxy card in hand when you access the web site and follow the instructions to obtain your records and to create an electronic voting instruction form.
|
|
ELECTRONIC DELIVERY OF FUTURE PROXY MATERIALS
If you would like to reduce the costs incurred by our company in mailing proxy materials, you can consent to receiving all future proxy statements, proxy cards and annual reports electronically via e-mail
or the Internet. To sign up for electronic delivery, please follow the instructions above to vote using the Internet and, when prompted, indicate that you agree to receive or access proxy materials electronically in future years.
|
|
|
|
|
|
|
VOTE BY PHONE - 1-800-690-6903
Use any touch-tone telephone to transmit your voting instructions up until 11:59 p.m. Eastern Time the day before the cut-off date or meeting date. Have your
proxy card in hand when you call and then follow the instructions.
VOTE BY MAIL
Mark, sign and date your proxy card and return it in the postage-paid envelope we have provided or return it to Vote Processing, c/o
Broadridge, 51 Mercedes Way, Edgewood, NY 11717.
|
TO VOTE, MARK BLOCKS BELOW IN BLUE OR BLACK INK AS FOLLOWS:
|
|
|
D15839-P40646
|
KEEP THIS PORTION FOR YOUR RECORDS
|
|
THIS PROXY CARD IS VALID ONLY WHEN SIGNED AND DATED.
|
DETACH AND RETURN THIS PORTION ONLY
|
||
|
SOL-GEL TECHNOLOGIES LTD.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
THE BOARD OF DIRECTORS RECOMMENDS A VOTE "FOR" PROPOSALS 1, 2, 3 AND 4.
|
|||||||||||||||||
| For | Against | Abstain | |||||||||||||||
| 1. |
To appoint Kesselman & Kesselman, certified public accountants in Israel and a member of PricewaterhouseCoopers International Limited, as the Company’s independent auditors for the year 2020 and for
an additional period until the following annual general meeting; and to inform the shareholders of the aggregate compensation paid to the auditors for the year ended December 31, 2019;
|
☐ | ☐ | ☐ | |||||||||||||
| For | Against | Abstain | |||||||||||||||
| 2. |
To approve the re-election of Ms. Hani Lerman and Dr. Alon Seri-Levy as Class II directors to the board of directors of the
Company, each for an additional three-year term until the annual general meeting to be held in 2023;
|
3. |
To approve the annual cash bonus plan for 2020 for Dr. Alon Seri-Levy, the Company's chief executive officer; and
|
☐ | ☐ | ☐ | |||||||||||
| Yes | No |
||||||||||||||||
| 3a. |
Are you a controlling shareholder (as defined in the Israeli
Companies Law) or do you have a personal interest in approval of proposal 3 above? Response required for vote to be counted.
|
☐ |
☐ |
||||||||||||||
| For |
Against | Abstain | |||||||||||||||
| Nominees: |
4. |
To approve an amendment to the Compensation Policy of the Company.
|
☐ | ☐ | ☐ | ||||||||||||
| 2a. |
Ms. Hani Lerman
|
☐ | ☐ |
☐ | Yes | No |
|||||||||||
| 2b. |
Dr. Alon Seri-Levy
|
☐ | ☐ | ☐ | 4a. |
Are you a controlling shareholder (as defined in the Israeli Companies Law) or do you have a personal interest in approval of proposal 4 above? Response required for vote to be counted.
|
☐ | ☐ |
|||||||||
|
For address changes and/or comments, please check this box and write them on the back where indicated.
|
☐ | ||||||||||||||||
| . |
Please indicate if you plan to attend this meeting.
|
☐ | ☐ |
|
|||||||||||||
| Yes | No | ||||||||||||||||
|
Please sign exactly as your name(s) appear(s) hereon. When signing as attorney, executor, administrator, or other fiduciary, please give full title as such. Joint owners should each sign personally. All
holders must sign. If a corporation or partnership, please sign in full corporate or partnership name by authorized officer.
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
| Signature [PLEASE SIGN WITHIN BOX] | Date | Signature (Joint Owners) | Date |