NEW YORK, June 29, 2020 /PRNewswire/ -- Ideanomics
(NASDAQ: IDEX) ("Ideanomics" or the "Company") today announced a
response to the recent short-selling communications from J Capital
and Hindenburg. According to their websites, these companies take
short positions in publicly traded companies then disseminate very
negative reports on these companies. "After consultation with
our legal counsel, we believe these communications, marketed as
research are illegal or have been banned in many countries, but
continue to operate in the grey areas of financial regulatory law
in the United States," said
Alf Poor, CEO of Ideanomics. Below
are Ideanomics' initial response to the allegations published in
these reports:
- J Capital alleged that Ideanomics does not have sufficient cash
to fund operations for more than three months. This statement can
easily be reconciled from the Company's recent series of filings of
form 424B2 with the SEC, which clearly shows the company has raised
capital in recent weeks and months.
- Hindenburg Research alleged that Ideanomics claims to own and
operate a large-scale facility in Qingdao for its MEG division sales and that
their investigators have been on-site and claim MEG does not have a
presence there. Ideanomics has never claimed or disclosed ownership
of the site. It holds a 15-year rent-free agreement which was
signed by Ideanomics in Nov. 2019 and
has since provided images to show its participation at the site.
Hindenburg Research disseminated social media content regarding
their conversation with MEG partner's sales staff with auto dealers
at this site. We have since obtained statements from these staff
members that refute Hindenburg's claims.
- J Capital has alleged it made inquiries with the local
Qingdao city investment group for
the Chengyang business district - Qingdao Chengyang Xinyang
Investment Co. Ltd - and that they have no knowledge of Ideanomics
or its MEG division. Ideanomics is providing government-issued
registration of the venture with our Company, which is a matter of
public record in China.
Furthermore, the city investment entity has released details of its
interest in the ventures, including a recent RMB 50 Million investment received by the Company
in January 2020, as part of a
potential series of investments, and recent media coverage in
the People's Republic of China
corroborates this.
- J Capital further alleges that it has inquired with recent
deals signed by Ideanomics MEG division, and its subsidiaries, and
that these companies deny having a business relationship with our
Company. We have contacted each of the partners and they have
provided statements confirming their business relationships with
our Company, and have each applied their respective company seal
for authenticity, in order to refute those claims entirely. These
partners include Tianjin Zhongcheng order for 42 units of Toyota
Land Cruiser, Jiudao Group for 400 units of Aoxin X30L EV, Beijing
Silk Road Rainbow, and Qinou Group order of 200 units of Dong Feng
Liuzhou S50EV for the City of Neijiang, Sichuan.
Detailed documentary proof to support Ideanomics response to
these allegations can be viewed on the Company's corporate website
at https://ideanomics.com/short-selling-activity/
The Company will continue to provide additional material it
believes is required to refute the claims made by J Capital and
Hindenburg and their sponsors.
Third-party Partner Quotes:
"Despite business disruption caused by the efforts to contain
COVID-19, we are impressed with MEG's and our joint venture's
progress," said Chengyang Chairman Liang
Yong Chun. "We are pleased to have MEG as a partner and are
enthusiastic about the bright future prospects for this joint
venture."
Beijing Silk Road Rainbow Group General Manager, Mr.
Wang Peng, stated, "We not only
signed two partnership agreements with MEG, but we have an
excellent working relationship and are actively pursuing for EV
buses replacement programs in three cities and making great
progress."
The PetroChina Chairman Xu
Xingxiang stated that, "We are excited to work with MEG on
energy sales and have propitious plans to lead the nation on test
bed efforts across several areas."
About Ideanomics
Ideanomics is a global company
focused on facilitating the adoption of commercial electric
vehicles and developing next generation financial services and
Fintech products. Its electric vehicle division, Mobile Energy
Global (MEG) provides group purchasing discounts on commercial
electric vehicles, EV batteries and electricity as well as
financing and charging solutions. Ideanomics Capital includes DBOT
ATS and Intelligenta which provide innovative financial services
solutions powered by AI and blockchain. MEG and Ideanomics Capital
provide our global customers and partners with better efficiencies
and technologies and greater access to global markets.
The company is headquartered in New
York, NY, and has offices in Beijing, Guangzhou and Qingdao, China.
Safe Harbor Statement
This press release contains
certain statements that may include "forward looking statements".
All statements other than statements of historical fact included
herein are "forward-looking statements." These forward-looking
statements are often identified by the use of forward-looking
terminology such as "believes," "expects" or similar expressions,
involve known and unknown risks and uncertainties, and include
statements regarding our intention to transition our business model
to become a next-generation financial technology company, our
business strategy and planned product offerings, our intention to
phase out our oil trading and consumer electronics businesses, and
potential future financial results. Although the Company believes
that the expectations reflected in such forward-looking statements
are reasonable, they do involve assumptions, risks and
uncertainties, and these expectations may prove to be incorrect.
You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this press release.
The Company's actual results could differ materially from those
anticipated in these forward-looking statements as a result of a
variety of risks and uncertainties, such as risks related to: our
ability to continue as a going concern; our ability to raise
additional financing to meet our business requirements; the
transformation of our business model; fluctuations in our operating
results; strain to our personnel management, financial systems and
other resources as we grow our business; our ability to attract and
retain key employees and senior management; competitive pressure;
our international operations; and other risks and uncertainties
disclosed under the sections entitled "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our most recent Form 10-K and Form 10-Q
filed with the Securities and Exchange Commission, and similar
disclosures in subsequent reports filed with the SEC, which are
available on the SEC website at www.sec.gov. All forward-looking
statements attributable to the Company or persons acting on its
behalf are expressly qualified in their entirety by these risk
factors. Other than as required under the securities laws, the
Company does not assume a duty to update these
forward-looking statements.
Investor Relations and Media Contacts:
Tony Sklar, VP of
Communications
55 Broadway, 19th Floor New York, New York 10006
Email: ir@ideanomics.com
Valerie Christopherson /
Lora Wilson
Global Results Comms (GRC)
+1 949 306 6476
valeriec@globalresultspr.com
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