US SEC temporarily suspends trading of Tingo Shares

The US Security and Exchange Commission has temporarily suspended the trading of Tingo Group Inc. shares from today, 14th of November till the 28th of November 2023. According to the Exchange Commission in a statement, it has done this “because of questions and concerns regarding the adequacy and accuracy of publicly available information in the marketplace concerning Tingo Group, including

1. press releases, periodic filings with the Securities and Exchange Commission—including Forms 10-K, 10-Q, and 8-K—and other publicly disseminated statements, since at least May 10, 2022, about the financial statements and business operations of its then merger acquisition target and current wholly-owned subsidiary, Tingo Mobile Ltd.; and
2. press releases, periodic filings with the Securities and Exchange Commission—including Forms 10-K, 10-Q, and 8-K—and other publicly disseminated statements, since at least February 9, 2023, about the financial statements and business operations of its wholly-owned subsidiary, Tingo Foods PLC.

Earlier this year, Tingo faced severe criticism in a scathing report from short-seller Hindenburg Research. The report raised serious concerns about Dozy Mmobuosi’s history and pointed out inconsistencies in the company’s financial statements, along with various claims by the company that were unverified and lacked substantiation.

The Hindenberg report resulted in a loss of over 50% of its value on NASDAQ.

In a swift rebuttal, Tingo issued a statement on its website stating that “the report, which contains numerous errors of fact, together with misleading and libellous content, appears to be a deliberate attempt to undermine the positive work that Tingo Group is undertaking across various worldwide markets.”

The Commission cautioned broker-dealers, shareholders, and prospective purchasers that they should carefully consider the foregoing information along with all other currently available information and any information subsequently issued by the company.

Interestingly the company announced its financial results for the quarter ended September 30, 2023 today. It stated that Net Revenues for the 9 Months ended September 30, 2023 amounted to $2.41 Billion while Operating Profit for the 9 Months Ended September 30, 2023 amounted to $492.5 Million.

Established in 2001, Tingo Group, Inc. operates internationally as a conglomerate of Fintech and Agri-Fintech enterprises across Africa, Southeast Asia, and the Middle East. Its fully owned affiliate, Tingo Mobile, stands at the forefront of Agri-Fintech in Africa, offering a suite of pioneering products such as a ‘device as a service’ smartphone and an integrated platform solution.

Tingo has not officially responded to the suspension.