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Willi Food Inte (WILCF) Risk Analysis
Risk Overview Q4, 2021
Source: the company's latest filing for the period ended Dec 31, 2021, filed Mar 15, 2022
Risk Change Over Time
No filing history is available.
- Natural and Human Disruptions - Risk 1The COVID-19 pandemic has caused an increase in sea freight costs and delays in delivery of inventory, which has and may continue to have a material adverse effect on our profitability. The COVID-19 pandemic may also adversely affect our business, revenues, results of operations and financial condition in other ways.
We purchase most of our inventory from countries outside the State of Israel. This inventory is transported through shipping companies and other forwarders until the inventory arrives to the various port in the State of Israel. We are dependent on shipping companies and other forwarders, and we are exposed to changes in inventory transportation prices and the ability of the shipping companies and forwarders to move the volume of inventory required by our business in a timely manner. During the last year, as a result of the COVID-19 crisis, the global supply chain has been adversely affected due to quarantines, shelter-in-place and similar government orders, travel restrictions and health impacts of the COVID-19 pandemic and the shortage of available containers and ships that used for sea transport. These events cause delays in the transport of ships and the release of containers at world ports, including Israel, as well as a significant increase in world shipping prices. If we are unable to obtain the inventory needed for our business on a timely and cost-effective basis, we will not have sufficient products to sell and may be required to increase the price of our products, which may have a material adverse effect on our business. The COVID-19 pandemic may also adversely affect our business, revenues, results of operations and financial condition in other ways. The precautionary measures taken by the United States, Israel and other affected countries around the world have and may continue to have an adverse effect on the global markets and its economy and could impact the availability and/or pricing of our employees, resources, materials, manufacturing and delivery efforts. For example, COVID-19 may restrict the ability of our suppliers to manufacture our products in sufficient quantities or at all. The COVID-19 outbreak continues to rapidly evolve, and its ultimate scope, duration and effects are unknown. The extent of the impact of the disruptions to our business, including our manufacturing capabilities and commercial sales, as a result of the pandemic, will depend on future developments, which are highly uncertain and cannot be predicted with confidence. The continuation of the COVID-19 pandemic could materially disrupt our business and operations, hamper our ability to raise additional funds or sell our securities, slow down the overall economy, curtail consumer spending and make it hard to adequately staff our operations,
Risk Highlights Q4, 2021
Risk Word Cloud
Risk Factors Full Breakdown - Total Risks 28
- Share Price & Shareholder Rights - Risk 1One shareholder owns a majority of our shares.
As of March 15, 2022, Willi-Food Investments Ltd., an entity controlled by Messrs. Zwi Williger and Joseph Williger, owned approximately 59.1% of our outstanding shares. Our Articles of Association do not provide for cumulative voting rights with respect to the election of directors and every resolution in a general meeting of shareholders is deemed duly passed if passed by a simple majority of the shareholders present and voting unless another majority is required by the Israeli Companies Law (the "Companies Law") or by our Articles of Association. Therefore, our controlling shareholders are able to control the outcome of matters requiring shareholder approval that do not require a special majority.
- Share Price & Shareholder Rights - Risk 2It will be extremely difficult to acquire jurisdiction and enforce liabilities against us, our officers and directors who are based in Israel.
We are organized under the laws of the State of Israel. The majority of our officers and directors reside outside of the United States and most of our operations and assets, and the assets of these persons, are located outside the United States. As a result, it may not be possible for United States investors to enforce their legal rights, to effect service of process or to enforce judgments of United States courts against us, our directors or our officers under federal securities laws of the United States. Further, it is unclear if extradition treaties now in effect between the United States and Israel would permit effective enforcement of criminal penalties under such securities laws. It may also be difficult to enforce civil liabilities under such securities laws in actions initiated in Israel.
- Share Price & Shareholder Rights - Risk 3The market price of our ordinary shares on either Nasdaq or the Tel Aviv Stock Exchange could fluctuate significantly.
The market price of our ordinary shares on the Nasdaq Capital Market or the Tel Aviv Stock Exchange (the "TASE") has in the past fluctuated significantly and may be affected by our operating results, changes in our business, changes in the products we market and distribute, and general market and economic conditions which are beyond our control. In addition, the stock market in general has, from time to time, experienced significant price and volume fluctuations that are unrelated or disproportionate to the operating performance of individual companies. These fluctuations have affected stock prices of many companies without regard to their specific operating performance. For these reasons, the price of our ordinary shares may fluctuate significantly in the future. Also, the financial markets in the Unites States, Israel and other countries have experienced significant price and volume fluctuations, and market prices of public companies have been and continue to be volatile. Volatility in the price of our ordinary shares may be caused by factors outside of our control and may be unrelated or disproportionate to our results of operations. In the past, following periods of volatility in the market price of a public company's securities, shareholders have frequently instituted securities class action litigation against that company. Litigation of this kind could result in substantial costs and a diversion of our management's attention and resources.
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