NEW YORK, April 7, 2021 /PRNewswire/ --Pomerantz LLP is investigating claims on behalf of investors ofEbang International Holdings Inc. (“EBON“ or the “Company“)(NASDAQ:EBON).Such investors are advised to contact Robert S. Willoughby at[email protected]or 888-476-6529, ext. 7980.
The investigation concerns whether Ebang and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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On April 6, 2021, Hindenburg Research (“Hindenburg“) published a report on Ebang, alleging that the Company used the proceeds from recent stock offerings to funnel money to insiders and “questionable counterparties.“ According to the Hindenburg report, Ebang raised $21 million in November 2020, claiming that the proceeds would be allocated “primarily for development.“The Hindenburg report alleges that $21 million was in fact directed to repay related-party loans to a relative of the Company's Chairman and Chief Executive Officer Dong Hu. The Hindenburg report also noted that EBang's earlier efforts to go public on the Hong Kong Stock Exchange failed due to widespread media coverage of its relationship with Yindou, a massive Chinese peer-to-peer online lending scheme that defrauded 20,000 retail investors in 2018, with $655 million “vanish[ing] into thin air.“
On this news, Ebang's stock price fell $0.82 per share or 12.91% percent to close at $5.53 per share on April 6, 2021.