BREAKING: 80% Value Gone As Hindenburg Research Calls Tingo Group A Scam

80% value of Tingo Group was wiped away as Hindenburg Research calls the company a scam.

 

NewsOnline reports that Tingo Group’s stock is down 80% on the Nasdaq because of a report by Hindenburg Research.

 

This online newspaper understands that in a brief report on Tuesday, Hindenburg explained that this was a short-term action by Tingo Group resulting in financial fraud. Tingo said it has multiple business segments focused on providing mobile phones, food processing, and an online grocery marketplace for Nigerian farmers.

 

READ ALSO: Former President Buhari Launch Of Nigeria Air A Scam – Reps

 

A US-based research firm has identified significant red flags behind founder Dozy.

 

First, he appears to have fabricated a career claim that he developed Nigeria’s first mobile payment app. We reached out to the app’s actual creator, and he called his Dozy claim “a total lie.” Dozier claimed to have a PhD. In 2007, I graduated from a Malaysian university with a degree in Rural Development.

I contacted the school to confirm my degree. They replied that they could not find anyone by his name in their verification system.

Backstory

According to Nigeria’s Economic and Financial Crimes Commission, Dozzy was arrested in 2017 and charged with eight counts of making fraudulent checks. He later settled the matter in arbitration.

In 2019, Dozzie claimed to have launched “Tingo Airlines” and posted social media messages urging customers to “fly Tingo Airlines today.” The media later revealed that Tingo had Photoshopped the logo into an image of the plane.

Dozzie later admitted that he never owned an actual plane.

Tingo’s Grocery

Tingo’s grocery division is seven months old, but in the most recent quarter alone he is expected to make $577.2 million in revenue, accounting for 68% of his total reported revenue.  The report also added it claimed an operating profit margin of 24.8% would exceed that of comparable large food companies.

However, Tingo does not have a food processing facility. Rather, the company claims its explosive sales and profitability come from acting as an intermediary between Nigerian farmers and obscure food processors.

In February 2023, the company hosted a groundbreaking ceremony for its planned US$1.6 billion food processing plant in Nigeria, attended by the country’s agriculture minister and other politicians.

A popular short pointed out that the depiction of the proposed facility featured in Tingo’s investor materials and ceremony signage was a depiction of the refinery from a stock photography website.

Shares of the fintech company fell more than 50% on Tuesday as Tingo Group shares went short, Hindenburg Research said.  The Short seller also accused the company of falsifying financial data and criticized claims by founder Dozi Momobuoshi of developing “Nigeria’s first mobile payment app.”

What you should know

The New Jersey-based holding company has operations in Africa, Southeast Asia, and the Middle East, and its divisions have expanded into agricultural fintech, food processing, and insurance intermediation.

Tingo, the short seller’s fourth target so far this year, is a relatively small firm compared to Indian conglomerate Adani Group, Jack Dorsey’s Block, and Carl Icahn’s flagship Icahn Enterprises.

Short sellers like Mr Hindenburg typically sell borrowed securities and try to buy them back at a lower price to make up the difference.

 

An inquiry into the Nigerian Communications Commission revealed that Tingo claims he has 12 million cell phone subscribers but is not a cell phone licensee at all. The research firm claimed that Tingo Mobile’s company presentation and its website used stock photos of farmers using mobile phones.