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Investing.com -- Gorilla Technology Group (NASDAQ: GRRR) shares fell 7% after being targeted by Culper Research, which accused the company of being a "ridiculous fraud." The short-seller’s report claims that Gorilla Technology has grossly misrepresented or fabricated various aspects of its business, from product claims to office locations and purported contract backlogs.
Culper Research’s detailed allegations suggest that Gorilla Technology, which went public via SPAC in 2022, has been presenting itself as a leading provider of AI hardware and services without substantial evidence to back its claims. The short-seller points out that the company’s global headquarters is suspiciously located above a London hair salon and spa and that its AI hardware appears to be nothing more than rebranded old Dell (NYSE:DELL) computers and Telpo cameras.
The report also scrutinizes the company’s CEO Jay Chandan’s claims of a multi-billion-dollar pipeline of deals, suggesting that the figures have been inflated from $1 billion in April 2024 to over $6.6 billion without any credible substantiation. One of the most damning allegations involves a supposed $1.8 billion contract with Thailand’s Provincial Electricity Authority for smart grid services, which Culper Research believes to be entirely fabricated, citing a lack of public records for such a contract as required by Thai law.
The market’s reaction to these allegations was swift, with Gorilla Technology’s stock experiencing a significant drop in today’s trading session. The credibility of Culper Research’s claims and the lack of immediate response from Gorilla Technology have left investors concerned about the company’s actual financial health and the validity of its business operations.
As of now, Gorilla Technology has not issued a statement addressing the accusations made by Culper Research.
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