DeFi Technologies Responds to Misleading Short and Distort Report
On June 19, 2024, DeFi Technologies responded to a misleading report by CoinSnacks.com, which the company believes was commissioned by short-sellers to depress its stock value (DEFTF). The report included defamatory and inaccurate statements. DeFi Technologies highlighted its strong financial position, declining a US$15 million offer due to its substantial cash reserves and debt repayments. The company reported significant revenues and income in Q1 2024, with its DeFi Alpha unit generating US$83.4 million from trading activities. DeFi Technologies has contacted regulatory authorities regarding potential market manipulation by short-sellers.
- DeFi Technologies declined a US$15 million offer due to strong financial position.
- Reported significant Q1 2024 revenues and operating net income.
- DeFi Alpha unit generated US$83.4 million from trading activities.
- Paid down US$19.5 million in debt.
- Publication of a misleading report by CoinSnacks.com potentially commissioned by short-sellers.
- Potential market manipulation concerns raised by unsolicited offer from a Canadian investment bank.
The Report lacks merit and contains numerous defamatory, selective, inaccurate, incomplete and misleading statements, speculation, and innuendo. Furthermore, the Company believes, for the reasons noted below, that the Report was possibly commissioned by short-sellers in a coordinated effort to depress the valuation of the common shares of the Company (the "Shares") to cover short positions, a tactic that is common for short-sellers to deploy when a company is successful and the short-sellers find themselves on the wrong end of a short trade. Recently, the Securities Exchange Commission (the "SEC") has shed light on this unscrupulous practice by short-sellers, as reflected in recent charges against short sellers known to employ such tactics (see https://www.sec.gov/enforce/ap-summary/ia-6622-s). The example provided is for illustrative purposes for the investing public to understand how these type of reports can be used for improper purposes and should not be construed as an accusation by the Company in the case of the Report against the fund recently charged by the SEC.
On June 10, 2024, the Company was approached unsolicited by a Canadian investment bank (the "Bank") on a potential bought-deal offer of
- on May 7, 2024, when the Company announced that it had paid down
US in debt;$19.5 million - on May 15, 2024, when the Company announced its strong 2024 Q1 results, including positive operating revenues and operating net income, and that its DeFi Alpha trading unit had generated
US ;$40 million - on June 3, 2024, when the Company announced that DeFi Alpha had generated a further
US , for a total of$43.4 Million US ; and$83.4 million - on June 6, 2024, when the Company announced its normal course issuer bid as well as approximately
US in cash in treasury along with 110 BTC.$51 million
The Company further found the Offer to be peculiar given that (a) the Bank had previously admitted in court filings in
The Company believes that coordinated efforts of short-sellers and issuance of misleading reports on public companies constitute market manipulation as evidenced by the SEC's recent orders. All shareholders of the Company are encouraged to review the Company's public disclosure record on www.sedarplus.ca.
DeFi Technologies Inc. (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF) is a financial technology company that pioneers the convergence of traditional capital markets with the world of decentralized finance (DeFi). With a dedicated focus on industry-leading Web3 technologies, DeFi Technologies aims to provide widespread investor access to the future of finance. Backed by an esteemed team of experts with extensive experience in financial markets and digital assets, we are committed to revolutionizing the way individuals and institutions interact with the evolving financial ecosystem. Join DeFi Technologies' digital community on Linkedin and Twitter, and for more details, visit https://defi.tech/
This press release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to statements regarding the development and listing of future ETPs; the regulatory environment with respect to the growth and adoption of decentralized finance; the pursuit by the Company and its subsidiaries of business opportunities; and the merits or potential returns of any such opportunities. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. Such risks, uncertainties and other factors include, but is not limited the acceptance of ETPs by exchanges; growth and development of decentralised finance and cryptocurrency sector; rules and regulations with respect to decentralised finance and cryptocurrency; general business, economic, competitive, political and social uncertainties. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws.
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SOURCE DeFi Technologies Inc.
FAQ
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