June 07, (THEWILL) – Tingo Group, a Nigerian-based Agri-Fintech organisation, has suffered a dramatic reversal of fortune as its share price plummeted by -55% on NASDAQ Tuesday, after Hindenburg Research released a report alleging fraud activities in the company.
The stock of Tingo Group on NASDAQ, an American stock exchange based in New York City, plunged by as much as 80.27 percent to close at $0.07 on Tuesday evening.
Hindenburg Research, a US investment research firm with a focus on activist short-selling, said it was shorting Tingo Group Inc which is listed on the NASDAQ exchange with the ticker TIO, because it believes the company “is an exceptionally obvious scam with completely fabricated financials.”
Hindenburg said in a statement Tuesday, that Tingo inflated its financials, lied about its $1.6 billion food processing plant, its expansion drive to Ghana and that it photoshopped its logo on another POS operator’s device.
The research group also accused Tingo’s founder and CEO, Dozy Mmobuosi, of fabricating parts of his personal and professional history.
Mmobuosi had previously been in the news for trying to buy a newly promoted Premier League team, Sheffield United, and for sponsoring the Nigerian football league’s pre-season cup.
According to the report, Mmobuosi in 2019 claimed that he had launched “Tingo Airlines” and encouraged people on social media to fly with the airline.
The airline reportedly registered in England as Tingo Airlines Limited, had declared a share capital of £1 billion in August 2019, with Mmobuosi as the sole shareholder.
The Athletic reported in February that there is no evidence of Tingo Airline ever flying an airplane, and that its registered address was removed with a note saying that the address was “invalid or ineffective and was forged”.
The airline is also facing an active proposal to be struck off the UK’s registrar of companies for failing to file basic paperwork.
However, the organisation has said “Tingo Group is a diverse fintech and agri-fintech group of companies with operations in Africa, Southeast Asia and the Middle East.”
“The Company significantly expanded and was somewhat transformed when we acquired 100% of Tingo Mobile Limited on November 30, 2022, and then subsequently acquiring Tingo Foods Plc on February 9, 2023, and subsequently changing our name Tingo Group Inc.”
Answering a question at the investors’ conference call on March 31, 2023, to discuss its FY 2022 results, Dozy Mmobuosi said
“Yes. Well, I’m not sure if this is the right forum to discuss football matters, but needless to say that I’ve always had passion for football, as you may be aware from my involvement in football in my home country Nigeria, where I support grassroots football and last year I sponsored the country’s Super Cup, which is actually the biggest tournament in Nigeria as of today.
“While I’m fortunate to be in a position to buy a major football club here in England, and for a team such as
Sheffield United with all its history, I have a desire to be the first black person to own a Premier League football club.
“I believe, of course, Sheffield United will be promoted to the English Premier League,”.
Reacting to the Hindenburg report, the Group in a statement Tuesday, refuted the allegations by Hindenburg Research which it described as malicious and misleading.
In a release published on its website, entitled ‘Tingo Group Refutes Malicious and Misleading Allegations in Hindenburg Research Report,’ the company said it categorically refutes all the allegations and misinformation in the report.
“Tingo Group, a profitable and fast growing fintech and agri-fintech company, categorically refutes all the allegations and misinformation outlined in a report published by Hindenburg Research earlier today.
“The report, which contains numerous errors of fact, together with misleading and libellous content, appears to be a deliberate attempt to undermine the positive work that 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 sizeable gains.
“The Company can confirm that no attempt was made by Hindenberg Research to verify the allegations or otherwise make genuine inquiries concerning the information provided in the report prior to its release.
“Tingo Group confirms 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 also 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 investor community has demonstrated its faith in Tingo Group on the basis of detailed analyses and reports prepared by leading professional advisors, financial experts and credit rating agencies.
“Tingo Group will respond in detail to the allegations made by Hindenburg Research in due course, but for the avoidance of doubt, the Company believes the report published today is a deliberate attempt to damage its reputation maliciously and unlawfully through the issuance of false, misinformed and distorted information for Hindenburg Research’s own financial gain and at the expense of the Company’s shareholders,” the company stated.
Efforts by THEWILL to reach the company for further comments were not successful as the mobile phone number listed on its website was switched off.
The company has its Nigerian address as “Tingogroup International Holdings, Foreshore Towers, 2 Osborne Road, Ikoyi, Lagos.”
Sam Diala is a Bloomberg Certified Financial Journalist with over a decade of experience in reporting Business and Economy. He is Business Editor at THEWILL Newspaper, and believes that work, not wishes, creates wealth.
