Dallas, Texas 05/19/2014 (FINANCIALSTRENDS) – NQ Mobile Inc (ADR) (NYSE:NQ), the Chinese mobile-service-provider that was accused by the short seller Carson Block for overstating revenue, has now dropped as much as 30% after delaying filing of its annual-report for the 2nd time. NQ shares have dropped 68% since Block; the Muddy Waters LLC founder said in 2013 October that the Beijing-based company was not more than “a massive fraud.” NQ Mobile Inc (ADR) (NYSE:NQ) has denied this allegation and also stated that it is now working to file the audited full-year-results to the United States regulators as soon as possible.
Why the delay?
Albert Fried & Co. special situations and merger arbitrage strategist, Sachin Shah said that “No data is negative data,” He said that he is surprised by the comments that they now need more time. This further undermines the company’s credibility. On 30 April, the company had delayed filing of the audited annual-report, called the 20-F, by 15-days as it waits for final results of the probe into the allegations that have been put forth by Block. The company said at that point that it does not anticipate any kind of changes to the previously reported fiscal results & it also did not provide any update on the probe in its latest statement.
No Filing yet
The company is not able to file on time the annual report on Form 20-F as it required some more time to complete it said NQ Mobile Inc (ADR) (NYSE:NQ), the Beijing-based company, in statement today. They said that the company now continues to work on filing the annual report for the year that ended Dec 31, 2013 as soon as is possible. Investors have also been waiting for its result from the probe that is by Shearman & Sterling LLP, the law firm & the auditor Deloitte and Touche Financial Advisory Services as the ruling on whether the assertion from Block that the company had misrepresented its fiscal reports has merit.