What's Going On With Tingo Group Stock Friday?

On August 30, Tingo Group, Inc TIO addressed concerns that the Hindenburg short-seller report raised about the company in a June 6, 2023, report. However, the company failed to satisfy Hindenburg.

After a three-month gap, the news relieved Tingo's retail investors. The company's quarterly report released this morning showed impressive figures: $977 million in revenue, $96 million in earnings, and a promised $20 million dividend, contingent on Nigerian government approval. 

During the conference call, Tingo projected substantial growth across metrics.

However, closer scrutiny reveals inconsistencies in Tingo's claims, per Hindenburg Research. 

Hindenburg's report flagged significant inconsistencies and red flags in the company's operations, from the CEO's questionable background to unverified business claims and financial discrepancies.

The report voiced serious allegations about the CEO, Dozy Mmobuosi, lying about his achievements and past, with an alleged history of financial malpractice and his claims to have developed the first mobile payment app in Nigeria.

The report mentioned significant doubts regarding Tingo's financials and business operations. A proposed food processing facility turned out to be a stock image of an oil refinery. Tingo's mobile services are also under scrutiny.

The company's internal investigation into allegations amounts to self-examination guided by non-independent counsel. 

Tingo's alleged relationships with suppliers and cooperatives, as well as its financial figures, raise skepticism.

Tingo's claimed supplier relationship with "UGC Technologies Limited" seems dubious. Contradictions arise from the alleged supplier's existence, location, and relationships.

Concerns about Tingo's cash balance are evident. Questions regarding supplier contracts, cash flow discrepancies, and non-functioning platforms remain unanswered.

Hindenburg Research, which initially exposed Tingo's issues, posed 38 questions to the company on August 9, 2023. However, the company has not addressed these questions, leading to further doubts.

It is becoming evident that Tingo's reported financials and business relationships are dubious at best. Despite mounting concerns, NASDAQ, the independent directors, and Deloitte, the company's auditor, remain silent.

Price Action: TIO shares traded lower by 11.2% at $1.15 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.