Brief: Gotham City Research Publishes Second Report On SES Imagotag

Vusion SA

07/07/2023 08:00

July 7 (Reuters) - GOTHAM CITY RESEARCH:
    * SES IMAGOTAG: THE FISH ROTS FROM THE HEAD – PART II
    * GOTHAM CITY RESEARCH SAYS WE FIND SES IMAGOTAG'S EXECUTIVE
MANAGEMENT AND BOARD OF DIRECTORS SUSPECT, AS WE HAVE IDENTIFIED
SERIOUS MISCONDUCT AND CONFLICTS OF INTEREST, INCLUDING:
    * AUSTRIAN LAND REGISTRY REVEALS THAT MEMBERS OF SESL’S
MANAGEMENT
OWN THE PROPERTY ( SESL'S 2ND LARGEST LOCATION) WHERE THE
SES-IMAGOTAG RESEARCH AND DEVELOPMENT CENTER OPERATES
    * GOTHAM CITY SAYS SESL IS THE TENANT OF THE AUSTRIAN
FACILITY,
MEMBERS OF MANAGEMENT, THE LANDLORD, AND ALL THESE ARE
SIGNIFICANT UNDISCLOSED RELATED PARTY TRANSACTIONS.
    * GOTHAM CITY RESEARCH SAYS 5 SES BOARD MEMBERS DESCRIBED AS
INDEPENDENT, INCLUDING 2 OUT OF 3 AUDIT COMMITTEE MEMBERS, DON’T
SEEM INDEPENDENT, AS THEY ARE MASSIVELY INVESTED ALONGSIDE
MANAGEMENT VIA SESIM, AN ILLIQUID STRUCTURE THAT OWNS SESL
SHARES.
    * GOTHAM CITY RESEARCH - SAYS EVEN WORSE, MANAGEMENT’S
HIGHLY
TOUTED NOVEMBER 2022 PURCHASE OF SHARES WAS ACTUALLY FINANCED
VIA PLEDGING EXISTING SHARES (I.E., BORROWING) VIA SESIM
    * GOTHAM CITY RESEARCH SAYS WE HAVE OBSERVED IN THE PAST
THAT
MANAGEMENT AND DIRECTORS ENGAGED IN SUCH MISCONDUCT ARE NO
LONGER FIT TO SERVE IN THOSE FUNCTIONS
    * GOTHAM CITY RESEARCH SAYS WE BELIEVE THAT SES-IMAGOTAG’S
FINANCIAL REPORTS, INCLUDING ITS CASH BALANCES, ARE SUSPECT
AND/OR MATERIALLY INCORRECT, AND THAT ITS RECENT YEARS’ ANNUAL
REPORTS WILL REQUIRE RESTATEMENT
    * GOTHAM CITY RESEARCH SAYS THE 2019 JV TRANSACTIONS AS
PRESENTED
BY SESL DO NOT MATCH FIGURES FROM CHINESE SOURCES. THE IMPLIED
$10 MILLION IRREGULARITY COMPLICATES SESL’S 2019 REPORTED CASH.
    * GOTHAM CITY SAYS THERE ARE OTHER IRREGULARITIES REGARDING
SESL’S
ASIAN SUBSIDIARIES INCLUDING: HOW MUCH DOES SESL OWN, HOW MUCH
HAS SESL INVESTED IN, AND WHEN WERE THESE FORMED
    * GOTHAM CITY RESEARCH SAYS A PRIOR VERSION OF SESL'S 2022
ANNUAL
REPORT CONTAINED RESEARCH AND DEVELOPMENT-RELATED ACCOUNTING
IRREGULARITIES. SESL REPLACED THIS AR UNANNOUNCED. THE COMPANY
SHOULD CLARIFY WHAT EXACTLY HAPPENED HERE.
    * GOTHAM CITY RESEARCH SAYS WE BELIEVE THAT SES-IMAGOTAG’S
FINANCIAL REPORTS, INCLUDING ITS CASH BALANCES, ARE SUSPECT
AND/OR MATERIALLY INCORRECT, AND THAT ITS RECENT YEARS’ ANNUAL
REPORTS WILL REQUIRE RESTATEMENT.
    * GOTHAM CITY RESEARCH SAYS TRADE RECEIVABLES AND OTHER
DEBTS AND
ACCRUAL ACCOUNTS DO NOT MATCH IN 2022

Source text: https://tinyurl.com/3xytunym
Further company coverage:  SESL.PA 

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