iLearningEngines plummets after Hindenburg unveils short position

iLearningEngines

29/08/2024 19:55

(Updates)
    ** Shares of enterprise AI firm iLearningEngines  AILE.O 
fall 54.3% to $1.45 in afternoon trading
    ** Hindenburg Research discloses short position in co,
suspects AILE's revenue and expenses largely "fake"
    ** Co was close to insolvency when it merged with a SPAC
sponsor in April, had $800,000 in cash and $22 mln in debt,
Hindenburg says
    ** AILE lied to SEC about 96% of its revenue in 2022 coming
from an undisclosed related party, Hindenburg claims
    ** "iLearningEngines has no obvious industry presence,
doesn't name key customers or partners and does not appear to do
the volume of business it claims," Hindenburg says
    ** "We have reviewed the full report and believe it contains
misleading statements, speculations and innuendos. We intend to
respond in the coming days," AILE says in a statement
    ** Reuters could not independently verify claims in the
Hindenburg report
    ** AILE shares down ~69.5% YTD

 (Reporting by Arsheeya Bajwa and Jaspreet Singh in Bengaluru)
 ((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))