Hindenburg Research, the notorious and most ruthless short-selling investment firm, has found its new victim to go after: Tingo Group, Inc., a Nigerian holding company that operates as a global fintech and Agribusiness.
Indeed, short-seller, Hindenburg Research published yet another report claiming that Tingo Group is a scam and has fabricated its financials. Hindenburg, known for its groundbreaking reports on Indian firm Adani Group, Block, formerly known as Square, and Icahn Enterprises, has previously led to stock drops and investor exits. Tingo Group appears to be the latest of the bunch, with shares down 58% today.
According to the fintech’s website, Tingo has operations in Africa, Southeast Asia, and the Middle East and subsidiaries such as TingoMobile, TingoPay, and a food division. The short-seller asserts that Tingo Group’s CEO, Dozy Mmobuosi, a Nigerian billionaire, has fabricated his biography, the company’s financials, and the launch of an airline division, among other accusations. Hindenburg also said that Tingo was an “exceptionally obvious scam” and called out founder Dozy Mmobuosi’s claims of having developed the first mobile payment app in Nigeria. Hindenburg claimed that it contacted the app’s actual creator, who called Dozy’s claims a “pure lie.”
But Hindenburg is not the first to sound alarm bells—Tingo co-chairman filed a public letter to Dozy saying he could not approve the company annual report (10K) due to critical questions that were left unanswered and had decided to resign from the board.
Tingo Group has categorically denied the allegations, however. According to Tingo, the report contains numerous errors of fact, together with misleading and libelous content, and appears to be a deliberate attempt to undermine the positive work that the company [Tingo Group] is undertaking across various worldwide markets. As disclosed by Hindenburg Research, the report represents their own opinion, and is designed to benefit a short position taken by them and their associates from which they stand to realize sizable gains.
Moreover, Tingo asserts that it remains in compliance with the laws of the territories in which it operates and maintains the highest standards of corporate governance. The company further confirms that its accounting records are accurate and correct and that its financial results are accurately reported within its financial statements and its SEC filings.
The report was just released a day prior, and development regarding this short position will surely continue. An investigation may soon open if new revelations are brought to light.