Tomer Food Delays Financial Reports Amid Inventory Probe

Tomer Food announced on Thursday that it will not publish its financial reports for the second quarter and the first half of the year on time. The company was scheduled to release its financial results by August 31, the deadline for second-quarter reports. This announcement comes in the wake of an inventory issue that led to the resignation of the newly appointed Chief Financial Officer, Avital Perlstein Cherny, before she officially began her duties.

Trading in the company's stock was halted last week by the Tel Aviv Stock Exchange due to the lack of clarity surrounding the CFO's decision. The halt has not yet been lifted. The situation is further complicated by a derivative lawsuit filed on Wednesday against the company and its controlling shareholder, Doron Kimelov, by a shareholder seeking NIS 2.5 million. The lawsuit alleges Kimelov acted in bad faith during negotiations for the company's merger with a shell company, misrepresenting the private company's value and inventory, thereby misleading the company and breaching his fiduciary duties.

On August 23, Tomer Food appointed Fahn Kna Consultants as an independent body to investigate the inventory issue and identify any discrepancies in previous periods. As this investigation is ongoing, the company cannot meet the reporting deadline. Additionally, Professor Haim Asiag has been appointed as a professional advisor to the audit committee to oversee the accuracy of the investigation's findings and the subsequent accounting corrections.

Tomer Food is also in discussions with its banks regarding financial covenants that may be required to finalize the reports. The company stated that it cannot comment further until the investigation is complete and the situation is clarified, at which point investors will be updated.