TASE Extends Trading Suspension for Tomer Mizon Amid Accounting Probe
The Tel Aviv Stock Exchange extended the trading suspension for Tomer Mizon shares amid an accounting scandal and inventory discrepancies tied to its leadership.
The Tel Aviv Stock Exchange (TASE) board of directors has decided to extend the suspension of trading in Tomer Mizon shares due to ongoing uncertainties surrounding the company. According to TASE regulations, if conditions for resuming trade are not met within 48 months of suspension, the company's securities will be delisted automatically.
Investigation Reveals Inventory Discrepancies
The decision follows findings from an ongoing internal probe that uncovered significant discrepancies regarding inventory management at a subsidiary. The investigation points to alleged interference by controlling shareholder, chairman, and CEO Doron Kimlov in determining inventory values.
Discrepancies relate to the cost of inventory items reflected in financial statements prior to the company's IPO compared to required reporting figures. These gaps will force the company to restate past financial statements.
"The audit committee has decided to conduct additional examinations regarding accounts receivable, as well as the disclosure and registration of certain related-party transactions."
Management Changes and Audits
Tomer Mizon recently appointed CPA Guy Freeman as CFO and Deputy CEO. Meanwhile, independent audits are being conducted by external legal counsel and the consulting firm Fahn Kraine, with Prof. Haim Asiag serving as a professional advisor.
The crisis erupted following the resignation of former CFO Avital Cherny just one day after taking office, after she discovered alarming inventory gaps in historical pre-IPO reports.
