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Tingo Group, the Fintech and Agri-Fintech group founded by Nigerian businessman Dozy Mmobuosi, has been described by Hindenburg Research as a fraudulent enterprise.
Hindenburg Research, the short investor whose reports on businesses have wiped out a large portion of their value, announced a short position in Tingo Group, sending shares of the fintech down more than 50 percent on Tuesday.
The short seller claimed that the company faked its financials and questioned founder Dozy Mmobuosi’s claims of developing “Nigeria’s first mobile payment app.”
Tingo Group, which was established in New Jersey, has operations in Africa, Southeast Asia, and the Middle East, and its subsidiaries span agri-fintech, food processing, and insurance broking.
“We contacted the app’s actual creator, who called Dozy’s claims ‘a pure lie,'” Hindenburg said. Billionaires.Africa is yet to read the contents of the report.
In early trading on Tuesday, the company’s shares fell more than 55 percent to $1.13.
Earlier this year, international news outlets reported that Mmobuosi was interested in acquiring English Football League club Sheffield United for more than $110 million.
The takeover bid of Sheffield United by Nigerian businessman Dozy Mmobuosi has suffered a setback after the court halted the transfer after it was gathered that the businessman has an outstanding county court judgment against him in the UK for failing to pay his rent on a property in St. Albans, Hertfordshire to the tune of £30,109.
Tingo is Hindenburg Research’s fourth target this year.
Still, it is a smaller firm when compared to Indian behemoth Adani Group, Jack Dorsey’s Block Inc., and Carl Icahn’s flagship Icahn Enterprises.
Short sellers, like Hindenburg, often sell borrowed securities to repurchase them at a lower price and pocket the difference.
Tingo is an over-the-counter stock and has a current market cap of $ 417-million. Mmobuosi owns a 12.1-percent stake in the company, presently worth over $50 million.
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