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New Energy Systems Group (NEWN US)

Year: 2011

Chinese battery maker New Energy Systems was the product of a 2004 reverse merger onto the US OTC market. In February 2011, short-seller GeoInvesting published a report which questioned a discrepancy in the company's Chinese SAIC and US SEC filings. While the company denied the allegations, its share price began to fall. In June, the company's CFO reigned. In August, the company reported poor 2Q11 results (this often happens shortly after short-seller allegations) and then the resignations of its CEO and the replacement CFO. In November, the company announced the sale of its under-performing battery subsidiaries for US$13.4m. The company went dark after 3Q12 financials. New Energy's financials had traits similar to past frauds for most of its listed history. The fraud was never proven but it is highly likely. 

Last updated February 2022

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