Following CFO's resignation: Tomer Mazon will not publish financial report on time

Tomer Mazon announces today that it will not publish the financial reports for the second quarter and the first half of the year on time. The company was expected to publish its results by tomorrow, August 31, the deadline for second-quarter reports. The announcement comes against the backdrop of an inventory affair that led to the resignation of the new CFO before she even took office.

Last week, trading in the company's shares was halted by the Stock Exchange due to a lack of clarity regarding the reasons for the departure of CFO Avital Perelstein-Cherni. Last Wednesday, a derivative lawsuit for 2.5 million shekels was filed against the company and its controlling shareholder, Doron Kimelov. The plaintiff claims that Kimelov acted in bad faith during merger negotiations, provided false representations regarding the company's value and inventory, and breached his fiduciary duties.

Today, Tomer reported that on August 23, it appointed Fahn Kanne Consulting as an independent party to examine the inventory issue and identify potential gaps from previous periods. As the audit is ongoing, the company will not publish its results on time. Additionally, Professor Haim Asiag has been appointed as a professional advisor to the audit committee to oversee the correction process and provide an opinion on the adequacy of accounting adjustments.

Simultaneously, Tomer Mazon is working to obtain consents from banks regarding financial covenants required to finalize the reports. Tomer Mazon stated:

"At this stage, and as long as the audit continues, we are unable to comment beyond the information already published. Upon completion of the audit and clarification of the picture, the company will update the investing public on its findings as part of an orderly report."