Company:Tingo Group

From HandWiki
Short description: Agri-fintech company
Tingo Group, Inc
FormerlyTingo Inc
TypePublic company
NASDAQ: TIO
Industry
  • Finance
  • Agriculture
  • Food
Key people
  • Chris Cleverly (president)
  • Dozy Mmobuosi (founder, former co-CEO)
  • Kenneth Denos (co-CEO)

Tingo Group, Inc. (formerly Tingo Inc) is a publicly traded fintech and agri-fintech conglomerate initially established in Nigeria and now with operations across Africa, Southeast Asia, and the Middle East.[1][2]

In November 2023, the US Securities and Exchange Commission (SEC) suspended dealings in Tingo shares, and, in December 2023, filed charges against founder Dozy Mmobuosi and three US-based entities: Tingo Group Inc, Agri-Fintech Holdings Inc and Tingo International Holdings Inc, alleging fraudulent financial claims to defraud investors.[3][4] On 2 January 2024, Mmobuosi was charged with securities fraud, making false filings with the SEC, and conspiracy charges.

History

In 2001, Dozy Mmobuosi launched Fair Deal Concepts Limited, now Tingo Mobile Plc (Nigeria), an agri-fintech company which provided mobile telephones and financial solutions for users in the agricultural sector.[5][6]

In 2002, Mmobuosi launched Nigeria's first SMS banking solution (sill used by a large bank today). In 2013, two mobile phone assembly facilities were set up in Nigeria (Lakowe and Lugbe). Tingo Mobile claimed these facilities had produced and distributed over 20 million mobile devices.[7] In October 2018, Tingo International announced that it had shut down its two handset manufacturing plants in Nigeria and relocated manufacture to China.[8]

In January 2020, Mmobuosi created Delaware-based Tingo International Holdings (TIH) as Tingo Mobile's U.S. holding company, and undertook a share exchange, effective February 2020, through which TIH became Tingo Mobile’s sole shareholder.[9] In early 2020, the company unveiled Reno Omokri as its brand ambassador.[10] Goodluck Jonathan, former president of Nigeria, and Olusegun Olutoyin Aganga, former Nigerian minister for Trade, Industry and Investment were on the board of Tingo as of June 2020.[11][12]

In August 2021, Tingo Mobile Plc became a public company when acquired by iWeb Inc in an all-stock deal worth $3.7 Billion. The merged company was renamed Tingo Inc and Mmobuosi was appointed CEO.[13]

In September 2021, MELD announced a three-way partnership with Tingo International Holdings and Ubuntu Tribe – an ethical firm which tokenises natural resources.[14]

In March 2022, doubts were raised about Tingo Mobile claims to have signed up over 12 million Nigerian farmer customers. Experts expressed surprise at Tingo claims of widespread mobile platform adoption; farmer co-operative organisations also denied any knowledge of Tingo.[15] By this stage, neither Goodluck Jonathan nor Reno Omokri, former spokesperson for Goodluck Jonathan, remained on Tingo's board.[15]

In November 2022, the company was announced as the official sponsor of the Nigeria Professional Football League where it sponsored the Nigeria Federation Cup with a cash prize of N100million for the winner.[16][17]

In December 2022, Tingo Mobile was sold by Agri-Fintech to Nasdaq-listed MICT, a global fintech and agri-fintech group, again through an all-stock merger, which valued Tingo at more than $1bn and gave it access to US capital markets.[4] Subsequently, on February 27, 2023, MICT changed its name to Tingo Group, Inc.[18][19][20]

Fraud allegations

In June 2023, Nasdaq-listed shares in Tingo Group plunged in value after a report from short seller Hindenburg Research said the company was an "exceptionally obvious scam".[20] The company denied the Hindenburg report claims[21] and appointed lawyers White & Case to review the report's claims.[22] In September, Tingo Group declared itself innocent of Hindenburg's allegations based on an investigation by its own outside counsel "and further investigative work of its own".[23] Hindenburg described Tingo's claims as "brazen and obvious fabrications".[24] On 18 September 2023, Tingo Group appointed Dozy Mmobuosi and Kenneth Denos interim as Co-CEOs.[25]

On 13 November 2023, the US Securities and Exchange Commission halted trading in Tingo Group shares[26] and that of related entity Agri-Fintech Securities[27] after finding inaccuracies in their disclosures.[28] While the SEC suspension of shares expired in late November, Nasdaq chose to keep trading of Tingo securities halted pending a review of provided information.[29]

In December 2023, the SEC announced charges against Mmobuosi and three US-based entities: Tingo Group Inc, Agri-Fintech Holdings Inc and Tingo International Holdings Inc, alleging fraudulent financial claims to defraud investors. SEC alleged that fraud's roots "date back years", beginning in at least 2019 with Mmobuosi creating fake financial statements and Mmobuosi siphoned hundreds of millions of investors' money for his personal benefit. The SEC's 72-page complaint also outlines allegedly fraudulent transactions involving Tingo Mobile in December 2022 and Tingo Foods in February 2023.[9] Auditor Deloitte had given Tingo Group a clean, unqualified audit for its 2022 accounts, leading Hindenburg to question if Deloitte had "missed or rushed through procedures".[30]

On 20 December 2023, Tingo Group said Mmobuosi was temporarily stepping down as interim co-CEO.[31] Following the SEC charges, on 21 December 2023, director John J Brown resigned from Tingo's board;[32] the following day, Jamie Khurshid and C. Derek Campbell, also resigned from board.[33] Christophe Charlier had refused to sign off Tingo financial reports and resigned in April 2023.[34]

On 2 January 2024, Mmobuosi was charged with securities fraud, making false filings with the Securities and Exchange Commission, and conspiracy charges.[35]

Subsidiaries

Tingo Mobile

Tingo Mobile is an Agri-Fintech company that provides a platform service through the use of smartphones to empower a marketplace to allow subscribers/farmers within and outside of the agricultural sector to manage their commercial activities of growing and selling their production to market participants both domestically and internationally.[36] Tingo connects farmers to markets, services, and resources via Nwassa, its digital AgriTech marketplace platform, which commenced its operations in April 2021.[37]

Tingo Foods

Tingo Food is a wholly owned subsidiary of Tingo Group. It offers food processing and production services operating in Lagos, Nigeria and was founded by Dozy Mmobuosi and with Neha Mehta as the CEO.[38]

Tingo DMCC

Tingo DMCC operates a commodities trading platform and commodity export business, connecting farmers and buyers around the world to facilitate fair trade and market access.[39]

TingoPay Super-App

In partnership with Visa, TingoPay Super-App provides payment services, e-wallet, and a range of services to its customers, as well as merchant services to businesses across various sectors.[40]

References

  1. ↑ Parkin, Darren (2023-02-27). "Tingo and EVTEC Energy sign partnership agreement that will create more than 12,000 jobs" (in en-GB). https://www.cityam.com/tingo-and-evtec-energy-sign-partnership-agreement-that-will-create-more-than-12000-jobs/. 
  2. ↑ "US-Based Company, Tingo Group Debunks Investigation Report On 'Billionaire' Founder, Dozy Mmobuosi's Alleged Fraud | Sahara Reporters". https://saharareporters.com/2023/06/07/us-based-company-tingo-group-debunks-investigation-report-billionaire-founder-dozy. 
  3. ↑ "U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25913". U.S. SECURITIES AND EXCHANGE. https://www.sec.gov/litigation/litreleases/lr-25913. 
  4. ↑ 4.0 4.1 Adeoye, Aanu; Quinio, Adila; Aliaj, Ortenca (24 December 2023). "‘A fiction’: the fall of a fintech star accused of ‘massive fraud’". Financial Times. https://www.ft.com/content/7825234e-d9aa-4274-bd64-949eea18fa88. 
  5. ↑ Parkin, Darren (2023-04-06). "Tingo Group reveals impressive 2022 financial results" (in en-GB). https://www.cityam.com/tingo-group-reveals-impressive-2022-financial-results/. 
  6. ↑ Writer, Verdict Staff (2023-02-15). "Visa, Tingo Mobile team up to boost digital payment access in Africa" (in en-US). https://www.electronicpaymentsinternational.com/news/visa-tingo-mobile-africa/. 
  7. ↑ "iWeb Inc. completed the acquisition of Tingo Mobile Plc." (in en). https://www.prnewswire.com/news-releases/iweb-inc-completed-the-acquisition-of-tingo-mobile-plc-301357783.html. 
  8. ↑ "FOREX: Tingo International Shuts Nigerian Plants Relocates to China - THISDAYLIVE" (in en). https://www.thisdaylive.com/index.php/2020/12/07/forex-tingo-international-shuts-nigerian-plants-relocates-to-china. 
  9. ↑ 9.0 9.1 "SEC complaint Case 1:23-cv-10928 Document 1 Filed 12/18/23". https://www.sec.gov/files/litigation/complaints/2023/comp25913.pdf. 
  10. ↑ "Tingo Mobile Unveils Reno Omokri as Brand Ambassador - THISDAYLIVE" (in en). https://www.thisdaylive.com/index.php/2020/02/20/tingo-mobile-unveils-reno-omokri-as-brand-ambassador. 
  11. ↑ TINGO INTERNATIONAL HOLDINGS, INC. Audited Report and Financial Statement For the period January 10th, 2020 to June 30th, 2020 . Accessed 2 January 2023.
  12. ↑ "Tingo Appoints Former Nigerian President, Dr Goodluck Jonathan as Advisory Board’s Chair". ioNigeria. 19 February 2020. https://ionigeria.com/tingo-appoints-former-nigerian-president-dr-goodluck-jonathan-as-advisory-boards-chair/. 
  13. ↑ "iWeb Inc. completed the acquisition of Tingo Mobile Plc.". Nasdaq. 19 August 2021. https://www.nasdaq.com/press-release/iweb-inc.-completed-the-acquisition-of-tingo-mobile-plc.-2021-08-19. 
  14. ↑ Russell-Jones, Lily (2021-09-30). "Exclusive: MELD to launch gold-backed stablecoin on Cardano network" (in en-GB). https://www.cityam.com/meld-announces-at-crypto-summit/. 
  15. ↑ 15.0 15.1 Nzekwe, Henry (16 March 2022). "Fuzzy Details Mar Tingo’s Obscure Billion-Dollar Business In Nigeria". Wee Tracker. https://weetracker.com/2022/03/16/tingo-agri-fintech-nigeria/. 
  16. ↑ "Tingo Dangles Goodies for Fans at NPFL-Dozy Mmobuosi Foundation Tourney ". https://www.thisdaylive.com/index.php/2022/12/02/tingo-dangles-goodies-for-fans-at-npfl-dozy-mmobuosi-foundation-tourney?amp=1. 
  17. ↑ Areo, Samuel (2022-11-24). "₦100m Prize Money for NPFL Pre-season Tournament" (in en-GB). https://www.aclsports.com/%E2%82%A6100m-prize-money-for-npfl-pre-season-tournament/. 
  18. ↑ Mamtora, Manshi (2023-02-24). "MICT will now trade as Tingo Group | Seeking Alpha" (in en). https://seekingalpha.com/news/3940664-mict-will-now-trade-as-tingo-group. 
  19. ↑ Staff Reporter (2022-11-11). "Tingo Mobile launches trade deal for major cocoa farmers in Ghana" (in en-US). https://farmersreviewafrica.com/tingo-mobile-launches-trade-deal-for-major-cocoa-farmers-in-ghana/. 
  20. ↑ 20.0 20.1 Kerr, Simeon; Quinio, Akila; Adeoye, Aanu (2023-06-06). "Shares in fintech Tingo slump after Hindenburg takes short position". Financial Times. https://www.ft.com/content/10522395-70c5-49ee-aa8f-34247ddf0e88. 
  21. ↑ Whitehouse, David (12 June 2023). "Nasdaq-listed Tingo denies ‘scam’ claims from short-seller Hindenburg Research". Africa Report. https://www.theafricareport.com/312295/nasdaq-listed-tingo-denies-scam-claims-from-short-seller-hindenburg-research/. 
  22. ↑ "Tingo Group Engages Independent Counsel to Conduct Review of Assertions Made in Short-Seller Report". Yahoo Finance. 8 June 2023. https://finance.yahoo.com/news/tingo-group-engages-independent-counsel-130500602.html. 
  23. ↑ Augustine, Abraham (1 September 2023). "Tingo Group waves aside Hindenburg allegations as it announces ~$1 billion in H12023 revenue". TechCabal. https://techcabal.com/2023/09/01/tingo-group-waves-hindenburg-allegations-as-it-claims-almost-1-billion-in-2023-revenue/. 
  24. ↑ "9/5/2023 Update: Further Response To Tingo’s Absurd Claims And Obfuscation From The Company’s September 1st Release". https://hindenburgresearch.com/tingo-scam-forges-ahead/. 
  25. ↑ Mendonça, Elaine (2023-09-18). "Tingo Group Announces Change in Leadership and Board Appointments" (in en-US). https://beststocks.com/tingo-group-announces-change-in-leadership-an/. 
  26. ↑ "SECURITIES EXCHANGE ACT OF 1934 Release No. 34-98920 / November 13, 2023". SEC. https://www.sec.gov/files/litigation/suspensions/2023/34-98920.pdf. 
  27. ↑ "SECURITIES EXCHANGE ACT OF 1934 Release No. 34-98921 / November 13, 2023". SEC. https://www.sec.gov/files/litigation/suspensions/2023/34-98921.pdf. 
  28. ↑ "SEC suspends trading of Tingo shares due to “lack of accurate” information". Semafor. 14 November 2023. https://www.semafor.com/article/11/14/2023/tingo-shares-suspended-by-sec. 
  29. ↑ "Turbulence Continues: Nasdaq Keeps Tingo Group Further Suspended Amid New Query". Afrikan Heroes. 30 November 2023. https://afrikanheroes.com/2023/11/30/turbulence-continues-nasdaq-keeps-tingo-group-further-suspended-amid-new-query/. 
  30. ↑ Adeoye, Aanu; Quinio, Akila (18 December 2023). "SEC charges fintech Tingo chief with ‘massive’ fraud after Hindenburg short position". Financial Times. https://www.ft.com/content/228fac01-1e93-4162-8f14-dcac297a44ad. 
  31. ↑ "Tingo Group CEO temporarily steps down after US SEC charges". Reuters. 20 December 2023. https://www.reuters.com/technology/tingo-group-ceo-temporarily-steps-down-after-us-sec-charges-2023-12-20/. 
  32. ↑ "Tingo Group, Inc. Announces Changes to its Board". https://www.marketscreener.com/quote/stock/TINGO-GROUP-INC-47381980/news/Tingo-Group-Inc-Announces-Changes-to-its-Board-45624807/. 
  33. ↑ "Tingo Group, Inc. Announces Board Resignations". https://www.marketscreener.com/quote/stock/TINGO-GROUP-INC-47381980/news/Tingo-Group-Inc-Announces-Board-Resignations-45646867/#:~:text=s%20Board%20on%20September%2018,of%20the%20Company%2C%20effective%20immediately.. 
  34. ↑ "Exhibit 17 - Resignation letter of Christope F Charlier". https://www.sec.gov/Archives/edgar/data/1648365/000110465923051351/tm2313922d1_ex17.htm. 
  35. ↑ "Founder And Former CEO Of Tingo Companies Charged With Securities Fraud". https://www.justice.gov/usao-sdny/pr/founder-and-former-ceo-tingo-companies-charged-securities-fraud. 
  36. ↑ "Tingo Mobile signs trade agreement with All Farmers Association of Nigeria" (in EN). 2022-10-21. https://www.freshplaza.com/africa/article/9471095/tingo-mobile-signs-trade-agreement-with-all-farmers-association-of-nigeria/. 
  37. ↑ "How Tingo Is Using Agri-Fintech To Change Farming in Africa" (in en). 2021-12-17. https://www.forbesafrica.com/brand-voice/2021/12/17/how-tingo-is-using-agri-fintech-to-change-farming-in-africa/. 
  38. ↑ Takouleu, Jean Marie (2023-02-28). "NIGERIA: Evtec to install a 110 MWp solar power plant for Tingo Foods in the Delta" (in en-US). https://www.afrik21.africa/en/nigeria-evtec-to-install-a-110-mwp-solar-power-plant-for-tingo-foods-in-the-delta/. 
  39. ↑ "Micronet Enertec Technologies Inc.: MICT Announces Rebranding and Name Change to Tingo Group, Inc - Form 8-K - MoneyController (ID 1169933)" (in en). https://www.moneycontroller.co.uk/finance-news/micronet-enertec-technologies-inc/mict-announces-rebranding-and-name-change-to-tingo-group-inc-form-8-k-1169933. 
  40. ↑ PYMNTS (2023-02-14). "Visa and Tingo Debut Super App for Africa's Farmers" (in en-US). https://www.pymnts.com/financial-inclusion-3/2023/visa-and-tingo-debut-super-app-for-africas-farmers/. 



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