The trading of the shares of Tingo Group shares, a company listed on Nasdaq and operating in agriculture and financial technology across Africa, the Middle East, and Southeast Asia, has been temporarily suspended by the U.S. Securities and Exchange Commission (SEC).
The suspension, set to last until Nov. 28, is due to concerns raised by the SEC regarding the adequacy and accuracy of publicly available information related to Tingo Group. This suspension also extends to Agri-Fintech Holdings, an entity associated with Tingo, owing to a lack of what the SEC deems as “adequate and accurate” information.
The SEC has advised brokers and those interested in Tingo to carefully consider its actions and any subsequent information issued by the company. This move by the SEC comes amid previous allegations against Tingo Group by Hindenburg Research, a short-seller, which in June labeled Tingo as an “obvious scam,” questioning the credibility of its financial numbers. Tingo refuted these allegations at the time.
The company reported $586.2 million and $2.4 billion in net revenues for the three and nine months ending Sep. 30, 2023, respectively. Tingo attributed the decline in third-quarter results to the devaluation of the Nigerian naira.
The SEC’s trading suspension, coupled with Hindenburg’s allegations, has raised doubts about Tingo’s credibility. The company has outlined ongoing projects, including the purchase of 6 million smartphones for farmers, the development of branded food products, and a potential launch in Pakistan. The SEC has urged stakeholders to carefully consider its actions and any subsequent information issued by Tingo.
This situation highlights increasing skepticism within the African tech community regarding Tingo’s rapid rise and raises concerns about the accuracy of its financial information. The SEC’s investigation adds another layer of uncertainty to Tingo’s standing in the market, prompting stakeholders to closely monitor developments in the coming weeks.
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A report by Hindenburg Research months ago accused Tingo Group’s CEO, “Dozy” Mmobuosi, of falsifying documents and the company’s financial statements on multiple occasions. The accusations against Tingo Group include claims of engaging in obvious scams with fabricated financials, raising questions about the company’s integrity and various business facets.
Tingo Group now faces an investigation by Block & Leviton, a prominent law firm, into potential securities law violations, further intensifying the scrutiny and potentially unraveling its once-enviable reputation.