NEW YORK, June 29, 2020 /PRNewswire/ — Ideanomics (NASDAQ: IDEX) (“Ideanomics” or the “Firm”) right now introduced a response to the current short-selling communications from J Capital and Hindenburg. In accordance with their web sites, these corporations take brief positions in publicly traded corporations then disseminate very unfavourable experiences on these corporations. “After session with our authorized counsel, we consider these communications, marketed as analysis are unlawful or have been banned in lots of international locations, however proceed to function within the gray areas of monetary regulatory legislation in the US,” stated Alf Poor, CEO of Ideanomics. Under are Ideanomics’ preliminary response to the allegations revealed in these experiences:
- J Capital alleged that Ideanomics doesn’t have adequate cash to fund operations for greater than three months. This assertion can simply be reconciled from the Firm’s current sequence of filings of type 424B2 with the SEC, which clearly reveals the corporate has raised capital in current weeks and months.
- Hindenburg Analysis alleged that Ideanomics claims to personal and function a large-scale facility in Qingdao for its MEG division gross sales and that their investigators have been on-site and declare MEG doesn’t have a presence there. Ideanomics has by no means claimed or disclosed possession of the location. It holds a 15-year rent-free settlement which was signed by Ideanomics in Nov. 2019 and has since supplied photos to indicate its participation on the website. Hindenburg Analysis disseminated social media content material concerning their dialog with MEG companion’s gross sales employees with auto sellers at this website. We’ve got since obtained statements from these employees members that refute Hindenburg’s claims.
- J Capital has alleged it made inquiries with the native Qingdao metropolis funding group for the Chengyang enterprise district – Qingdao Chengyang Xinyang Funding Co. Ltd – and that they don’t have any data of Ideanomics or its MEG division. Ideanomics is offering government-issued registration of the enterprise with our Firm, which is a matter of public document in China. Moreover, town funding entity has launched particulars of its curiosity within the ventures, together with a current RMB 50 Million funding obtained by the Firm in January 2020, as a part of a possible sequence of investments, and up to date media protection in the Individuals’s Republic of China corroborates this.
- J Capital additional alleges that it has inquired with current offers signed by Ideanomics MEG division, and its subsidiaries, and that these corporations deny having a enterprise relationship with our Firm. We’ve got contacted every of the companions they usually have supplied statements confirming their enterprise relationships with our Firm, and have every utilized their respective firm seal for authenticity, to be able to refute these claims totally. These companions embody Tianjin Zhongcheng order for 42 models of Toyota Land Cruiser, Jiudao Group for 400 models of Aoxin X30L EV, Beijing Silk Street Rainbow, and Qinou Group order of 200 models of Dong Feng Liuzhou S50EV for the Metropolis of Neijiang, Sichuan.
Detailed documentary proof to help Ideanomics response to those allegations may be considered on the Firm’s company web site at https://ideanomics.com/short-selling-activity/
The Firm will proceed to supply further materials it believes is required to refute the claims made by J Capital and Hindenburg and their sponsors.
Third-party Associate Quotes:
“Regardless of enterprise disruption attributable to the efforts to include COVID-19, we’re impressed with MEG’s and our three way partnership’s progress,” stated Chengyang Chairman Liang Yong Chun. “We’re happy to have MEG as a companion and are enthusiastic concerning the vivid future prospects for this three way partnership.”
Beijing Silk Street Rainbow Group Common Supervisor, Mr. Wang Peng, said, “We not solely signed two partnership agreements with MEG, however we’ve got a wonderful working relationship and are actively pursuing for EV buses alternative applications in three cities and making nice progress.”
The PetroChina Chairman Xu Xingxiang said that, “We’re excited to work with MEG on power gross sales and have propitious plans to guide the nation on check mattress efforts throughout a number of areas.”
Ideanomics is a world firm targeted on facilitating the adoption of business electrical automobiles and growing subsequent technology monetary providers and Fintech merchandise. Its electrical automobile division, Cellular Vitality World (MEG) gives group buying reductions on industrial electrical automobiles, EV batteries and electrical energy in addition to financing and charging options. Ideanomics Capital consists of DBOT ATS and Intelligenta which give modern monetary providers options powered by AI and blockchain. MEG and Ideanomics Capital present our world clients and companions with higher efficiencies and applied sciences and larger entry to world markets.
The corporate is headquartered in New York, NY, and has places of work in Beijing, Guangzhou and Qingdao, China.
Secure Harbor Assertion
This press launch comprises sure statements that may embody “ahead trying statements”. All statements aside from statements of historic reality included herein are “forward-looking statements.” These forward-looking statements are sometimes recognized by means of forward-looking terminology equivalent to “believes,” “expects” or related expressions, contain identified and unknown dangers and uncertainties, and embody statements concerning our intention to transition our enterprise model to change into a next-generation monetary expertise firm, our enterprise technique and deliberate product choices, our intention to section out our oil buying and selling and client electronics companies, and potential future monetary outcomes. Though the Firm believes that the expectations mirrored in such forward-looking statements are affordable, they do contain assumptions, dangers and uncertainties, and these expectations may show to be incorrect. You shouldn’t place undue reliance on these forward-looking statements, which communicate solely as of the date of this press launch. The Firm’s precise outcomes may differ materially from these anticipated in these forward-looking statements on account of quite a lot of dangers and uncertainties, equivalent to dangers associated to: our skill to proceed as a going concern; our skill to lift further financing to satisfy our enterprise necessities; the transformation of our enterprise model; fluctuations in our working outcomes; pressure to our personnel administration, monetary programs and different assets as we develop our enterprise; our skill to draw and retain key workers and senior administration; aggressive strain; our worldwide operations; and different dangers and uncertainties disclosed beneath the sections entitled “Threat Elements” and “Administration’s Dialogue and Evaluation of Monetary Situation and Outcomes of Operations” in our most up-to-date Kind 10-Ok and Kind 10-Q filed with the Securities and Change Fee, and related disclosures in subsequent experiences filed with the SEC, which can be found on the SEC web site at www.sec.gov. All forward-looking statements attributable to the Firm or individuals appearing on its behalf are expressly certified of their entirety by these threat elements. Apart from as required beneath the securities legal guidelines, the Firm doesn’t assume an obligation to replace these forward-looking statements.
Investor Relations and Media Contacts:
Tony Sklar, VP of Communications
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Valerie Christopherson / Lora Wilson
World Outcomes Comms (GRC)
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