On May 11, 2020, Hamilton Beach Brands disclosed that it could not timely file its first quarter 2020 quarterly financial report due to “certain accounting irregularities with respect to the timing of recognition of selling and marketing expenses and the classification of certain expenditures within the statement of operations at its Mexican subsidiary.” In addition, the Company stated that its “Audit Review Committee has commenced an internal investigation, with the assistance of outside counsel and other third party experts,” concerning “the realizability of certain assets of the Mexican subsidiary.” On this news, shares of Hamilton Beach Brands common stock fell by approximately 9%, or $1.03 per share, to close at just $10.43 per share on unusually heavy trading volume.
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