Tingo, a Nigerian-based agritech company, saw its stock plummet by as much as 80.27 percent to close at $0.07 on Tuesday evening after Hindenburg Research published a report alleging fraud in the company.
As soon as the report was released, BusinessDay began tracking Tingo’s stocks on investing.com.
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Hindenburg Research, a well-known activist investor, announced that it is shorting Tingo Group Inc, which trades on the NASDAQ under the ticker TIO, because it believes the company “is an exceptionally obvious scam with completely fabricated financials.”
A Tingo executive denies the allegations in Hindenburg Research’s report, calling them “lies.” According to the executive, the company intends to issue an official statement after completing a critical meeting.
According to the Hindenburg report, the Tingo, founded and led by Dozy Mmobuosi, has major red flags. One of them is Mmobuosi’s claim to have created Nigeria’s first mobile payment app, which Hindenburg claims was denied by the app’s actual creator.
Mmobuosi allegedly claimed in 2007 to have received a PhD in rural development from a Malaysian university. Hindenburg claimed it contacted the university to verify the degree, and the university allegedly responded by saying it did not know anyone by that name.
Tingo Group, a holding company with operations in Nigeria and other markets, offers food processing and sales, mobile handset sales and leasing, and the “Nwassa: Online Food Marketplace.”
Following the report on Tuesday, Block & Leviton, a Boston-based law firm known for taking on corporations on behalf of investors, announced that it was looking into Tingo Group for potential securities law violations.
