Company: KARO
Filing Date: 2025-06-09
Form Type: 20-F
Source: 0001213900-25-052372
Chunk: 59

Company: Karooooo Ltd.
Filing Date: 2025-06-09
Form: 20-F
Item: Item 3
Chunk 59
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ysts do not publish research, or publish inaccurate or unfavorable research, about our business, the price of our ordinary shares
and our trading volume could decline.

The trading market for our ordinary
shares will depend in part on the research and reports that securities or industry analysts publish about us or our business. Securities
and industry analysts do not currently, and may never, publish research on our company. If no or too few securities or industry analysts
commence coverage of our company, the trading price for our ordinary shares would likely be negatively affected. In the event securities
or industry analysts initiate coverage, if one or more of the analysts who cover us downgrade our ordinary shares or publish inaccurate
or unfavorable research about our business, the price of our ordinary shares would likely decline. If one or more of these analysts cease
coverage of our company or fail to publish reports on us regularly, demand for our ordinary shares could decrease, which might cause the
price of our ordinary shares and trading volume to decline.

Requirements associated with
being a public company in the United States require significant company resources and management attention.

As a U. S. public company, we incur
significant additional legal, accounting, reporting, compliance and other expenses as a result of having publicly traded ordinary shares
in the United States. We also incur costs including, but not limited to, costs and expenses for directors’ fees, increased directors
and officers insurance, investor relations, and various other costs relating to being a public company registered in the United States.

We also incur costs associated
with United States corporate governance requirements, including requirements under SOX, as well as rules implemented by the SEC, Nasdaq
and the JSE. These rules and regulations increase our legal and financial compliance costs and make some management and corporate governance
activities more time-consuming and costly, particularly after we are no longer an “emerging growth company.” These rules and
regulations make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required
to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. This could have
an adverse impact on our ability to recruit and retain a qualified independent board.

Our senior management and other
employees have devoted, and will need to continue to devote, a substantial amount of time and attention away from revenue producing activities
to management and administrative oversight, adversely affecting our ability to attract and complete business opportunities and increasing
the difficulty in both retaining professionals and managing and growing our businesses. Furthermore