Photo: Art Clon
We know that companies must disclose all risk factors that may affect investors in the course of its operations.At their most dramatic, this discussion includes things like market volatility, potential lawsuits and if you’re lucky, geopolitical risks in supplier countries.
But warning that the corporate office could fall into the earth?
That’s a risk you’ll have to take if you invest with Annie’s Inc., the organic foods retailer that went public on Tuesday.
From its S-1 filing with the SEC:
Our corporate offices are located in Berkeley, California, which is traversed by the Hayward Fault, a major branch of the San Andreas Fault, and on the eastern shores of San Francisco Bay. The impact of a major earthquake or tsunami, or both, or other natural disasters in the San Francisco Bay area on our facilities and overall operations is difficult to predict, but such a natural disaster could seriously disrupt our entire business. Our insurance may not adequately cover our losses and expenses in the event of such a natural disaster. As a result, a major earthquake, tsunami or other natural disaster in the San Francisco Bay area could lead to substantial losses.
We’re chuckling thinking of the corporate lawyers who booked an extra hour of fees to insert that one in there.