Online gambling companies issue statements concerning two separate issues involving misleading reports
In two distinct and separate issues, online gambling companies Betsson in Sweden and Intertain in Canada have felt it necessary to issue statements correcting what they allege are "misleading and self-serving" statements by short sellers.
Taking the Intertain case first, the company tackled a "misleading and self-serving report" that was published on December 17, 2015 by a self-identified short-seller of the company's common shares, Spruce Point Capital Management LLC.
The 120-page, largely critical report caused a more than 30 percent rout of the company's shares in just two days, causing a temporary halt in trading. When the halt was lifted things did little to improve, although after the Intertain statement refuting the allegations was released there was a muted rally.
Intertain claims that Spruce Point Capital Management LLC and its affiliates had built a short position in Intertain's common shares prior to its publication of the December 17, 2015 report, and therefore stands to realise significant gains in the event that the price of the company's stock declines.
"Intertain has established a committee of non-management directors to closely review the allegations contained within the Spruce Point report," Intertain says in its statement to the market.
"Following that review, the company will take any and all actions necessary and appropriate to protect the interests of the company and its shareholders."
Betsson appears to have encountered a similar problem, and issued a statement Friday that advised:
"In July 2015 Betsson acquired the Georgian privately owned gambling operator Europe-Bet by acquiring the company Chempionebi 111 LLC.
"An anonymous document which contains false information and fictitious facts about the transaction is now circulating, most likely to defame Betsson.
"Betsson has reasons to believe that an individual, with the aim of earning personal financial gains by short selling the Betsson shares, wants to discredit the company. This is something Betsson takes very seriously, especially as the company has many small shareholders.
"The acquisition of Europe-Bet has been carried out after thorough due diligence, and a special investigation has been conducted on the sellers. Neither of the studies resulted in findings that were against the acquisition," the betting company notes in its statement.
Detailing the corrective measures it has so far taken, Betsson reports that as soon as it became aware of the rumour-mongering it contacted both the Stockholm Stock Exchange and the Swedish Financial Supervisory Authority.
"Betsson is now examining the possibilities to take legal actions against the author of the document and against the fund that distributes this document in order to manipulate the share price for their own gains," says Betsson communications chief Malin Sparf Rydberg.
The Swedish news media has filled in some of the blanks in the careful Betsson statement, reporting that the man allegedly behind the short-selling scam previously controlled around a quarter of Europe-Bet stock and is Khvicha Makatsaria, a businessman who has in the past faced accusations of political corruption and money laundering in Georgia.
Online Casino News Courtesy of Infopowa