Fri. Nov 22nd, 2024
suspends tingo stocks

By Adedapo Adesanya

The United States Securities Exchange Commission (SEC) has suspended the trading of Tingo Group stocks on the NASDAQ stock exchange.

Tingo is a Nigeria-focused agriculture company listed on the bourse that claims to provide a marketplace and payment services for farmers in the country.

Prior to this development, there have been worries about the true nature of the company, especially as its numbers do not match its scale.

The suspension in the trading of the company’s equities came as Tingo on Tuesday released its financial reports for the third quarter of 2023, claiming $586.2 million in net revenues and gross profits of $137.9 million.

According to the notice from the regulator, the suspension is linked to questions and concerns regarding publicly available information about Tingo Group, including press releases and periodic filings.

The suspension of trading will last from November 14 to November 28, 2023.

“The commission is of the opinion that the public interest and the protection of investors require a suspension of trading in the securities of [Tingo],” the SEC wrote in its suspension notice published on Tuesday.

Hindenburg Research in June published an investigative report claiming that Nigerian financial technology company, Tingo Group, has committed multiple scams across its verticals and has also fabricated its financials.

The short seller based in Manhattan published a detailed investigation into the fintech and agri-fintech group owned by Mr Dozy Mmobuosi, claiming that that company is a scam with “fabricated” financials.

It claimed that Tingo Group’s CEO, Mr Mmobuosi, has fabricated his bio, the company’s financials, and the launch of an airline division, among other accusations.

Other problems include faked businesses; among these are the proven false Tingo Airlines, as well as Tingo Group claiming to be a food processing company but not owning a single plant.

Additionally, in April 2023, Tingo Group’s co-chairman recused himself in a letter to the Securities and Exchange Commission (SEC) by resigning from the company.

Also, the report noted that, “Dozy is regularly described by the media as a billionaire and made waves earlier this year when he attempted to acquire the now-Premier League soccer team Sheffield United.”

According to the fintech’s website, Tingo has operations in Africa, Southeast Asia, and the Middle East and subsidiaries such as TingoMobile, TingoPay, and a food division.

Tingo, based in New Jersey, is listed on the NASDAQ under the symbol TIO.

In September, three months after the allegations by Hindenburg Group, Tingo finally broke its silence by denying all allegations after claiming it had hired outside counsel.

It denied the allegations and claimed that its financial statements were misstated by hundreds of millions due to “typographical errors”.

By Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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