• XMAX shares are experiencing downward pressure. Why is XMAX stock retreating?

Fake Purchase Orders Discovered By Wolfpack Investigators

The report alleges the furniture company is promoting a fabricated pivot into artificial intelligence to justify massive shareholder dilution. Benzinga has reached out to XMAX for comment on the allegations.

According to the report, XMAX narrowly avoided a NASDAQ delisting in October 2024 by allegedly faking $4.6 million in stone slab purchase orders from five Malaysian suppliers. Wolfpack investigators visited the listed addresses of these suppliers and discovered that one location was actually a preschool, while others were residential properties, the report states.

The firm believes XMAX then washed these non-existent assets off its balance sheet by recording a fictitious $8 million sale to a mystery customer in Hong Kong.

AI Pivot Raises Financial Red Flags

Ultimately, Wolfpack warns that retail investors face potentially endless dilution. The company recently filed for a $1 billion shelf offering and has reportedly issued millions of shares to undisclosed foreign entities at staggering discounts of up to 50%.

XMAX Shares Drop Thursday Morning

XMAX Price Action: XMax shares traded lower on the report before bouncing back. The stock was up 2.33% at $8.34 at the time of publication on Thursday, according to Benzinga Pro data.

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