External auditors have concluded SES Imagotag did not overstate revenue or buy and sell repeatedly on round trip transactions between its Chinese business partner, BOE, as claimed recently by short seller Gotham City Research, according to a report by Reuters.
The report says a certificate provided by auditors Deloitte and KPMG shows that transactions between the French smart digital labels specialist and BOE totalling some €53.1 million euros were neutralised and not part of its €620.9 million revenue as at 31 December, 2022.
SES Imagotag said in a statement: “This invalidates the central argument on which Gotham City’s report based its accusation of round-trip double-counting between BOE and SES-imagotag.”
The company has also reportedly asked its advisors to alert the French market regulator AMF to “numerous breaches of regulations committed by Gotham City”.
In a recent report Gotham City claimed SES Imagotag’s financial statements were “materially misleading, incorrect, and deficient”, causing a sharp decline in the company’s shares in pre-open trading on the Paris stock exchange last Thursday, and prompting Euronext to temporarily halt trading.
SES Imagotag subsequently asked Euronext to suspend its shares.
