The short-sellers at Viceroy Research around Fraser Perring have discovered a new target: the listed Japanese company Abalance. As with other targets such as Wirecard, Grenke, or Adler Group, they claim to have discovered irregularities and false statements. The Abalance share has recovered after a 30% crash. Today, another Viceroy update on Abalance has appeared with new serious allegations against the company and its CEO.
The new Viceroy update provided details about the corporate filings showing numerous undisclosed related party transactions with Abalance insiders. These transactions take place with dummy shell companies and unconsolidated subsidiaries of VSUN.
- The Viceroy research suggests that Abalance management and their associates have been embezzling assets and money from Abalance shareholders.
- The center of this web appears to be Abalance CEO Ryu Junsei, who Viceroy believes must explain his involvement to shareholders.
- Abalance subsidiary Fuji Solar, which accounts for over 90% of the group’s revenues with its subsidiary VSUN, appears to be audited by a co-owner of the Abalance subsidiary CSUN, and not an independent third-party accounting firm.
- In their first report, Viceroy highlighted that despite fully consolidating VSUN, it is only entitled to approximately 43% of profits from its operations due to its holding structure. Abalance owns 51% of Fuji Solar, which in turn owns approximately 85% of VSUN.
Viceroy claims that the collected data are all sourced from public registries and are independently verifiable at the cost of a few dollars.
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