Gorilla Technology dismisses fraud accusations, plans buyback

Published 24/03/2025, 13:14
Gorilla Technology dismisses fraud accusations, plans buyback

LONDON - Gorilla Technology Group Inc. (NASDAQ: GRRR) has publicly refuted allegations made by individuals currently facing charges from the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ). The company’s Chairman & CEO, Jay Chandan, stated that the accusations are baseless and lack credibility due to the accusers’ legal issues. Gorilla’s legal teams are addressing the matter across various jurisdictions.

Amid recent short selling activity that has impacted Gorilla’s share price, dropping 14.7% in the past week, the company’s Board of Directors considers the stock to be significantly undervalued. Following its 2024 earnings statement, due on April 4, Gorilla intends to proceed with its share buyback program if the share price does not align with the Board’s assessment of the company’s intrinsic value. Additionally, board members and executive management have expressed their intention to purchase shares after the earnings release, signaling their confidence in the company’s direction and future performance. InvestingPro analysis shows the stock trading at a P/E ratio of 3.2, suggesting potential undervaluation relative to peers.

Gorilla Technology, headquartered in the U.K., specializes in providing solutions in several high-tech domains, including Security Intelligence, Network Intelligence, Business Intelligence, and IoT, leveraging AI and Deep Learning technologies. The company, which maintains a healthy current ratio of 1.72 and operates with moderate debt levels, focuses on sectors such as government, manufacturing, telecom, retail, transportation, healthcare, and education. Gorilla’s expertise includes AI-driven technologies for Smart Cities, enhancing urban operations, security, and resilience. The company has demonstrated strong financial performance with a gross profit margin of 75% and revenue growth of 425% in the last twelve months.

The press release also included forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations. These statements are based on current beliefs about the company’s value and the potential for board members and management to buy shares. However, factors beyond Gorilla’s control may affect these outcomes.

This article is based on a press release statement from Gorilla Technology Group Inc. and does not include independent verification of the company’s claims. The forward-looking statements are subject to risks detailed in Gorilla’s filings with the SEC.

In other recent news, Gorilla Technology Group has revised its 2025 revenue guidance upwards to $100-$110 million, reflecting strong demand for its AI and cybersecurity solutions. The company also announced a significant $1.8 billion project in Thailand aimed at modernizing the country’s electrical grid, which is expected to enhance Gorilla’s long-term revenue growth. Additionally, Gorilla has increased its share buyback program from $6 million to $10 million, signaling confidence in its financial position and growth potential. In a strategic move, Gorilla has secured key partnerships, including becoming the exclusive technology provider for the Global Edge Worldwide Fund’s infrastructure investments, which involve substantial financial commitments in the Americas and Southeast Asia.

However, Gorilla has faced scrutiny from short sellers like Citron Research, which raised concerns about potentially misleading statements and omissions, urging regulatory intervention. The Bear Cave also expressed caution regarding the company’s rapid growth and retail investor enthusiasm. Despite these challenges, Gorilla’s CEO Jay Chandan remains optimistic, emphasizing the company’s diverse project pipeline and recent strategic milestones. As the situation evolves, investors will be closely monitoring Gorilla’s responses to these allegations and its ongoing business developments.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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