of the 2018 and 2019 restatements bear out the Aurelius Value accusations of their June 7th, 2019 report.
Friday, June 7th,
short seller, Aurelius Value, published a degrading report on
“Where Are The Customers?”.
In the report, among many other claims, Aurelius Value said that
has a questionable value of its 36-months backlog (reaching $900
the back of its customers for which Aurelius Value suspects
being capable of paying disclosed contractual values. It
also questions whether the company will be able to convert 100%
its backlog to revenue at the contractual rates.
example of the issue in question is Pareteum’s announced contract
deal with “Eyethu Mobile Network”, a South Africa-headquartered
company, worth around $50 million. Aurelius Value wanted to further
research this company, hence it went for a visit, allegedly
dilapidated shack and crumbling structures near a rural African
important acquisition relates to Pareteum’s management team with
Aurelius Value linking them to previous breakdowns and/or frauds.
More specifically, the
report states that biographies for CEO Hal Turner and TEUM’s COO
avoid representing their head positions at Catcher Holdings, which
ended up being an unprofitable stock, due to its connection with
Barry Honig, an infamous stock operator who was charged with fraud by
the Securities and Exchange Commission in October 2018.
Aurelius Value finds “similarities
between TEUM and the stock promotion at Catcher”,
alluding that Pareteum’s investors could end up with nothing as
the CEO and COO were previously part a previously fraudulent scheme,
one or more of their contracts appears to be bogus, they claim of a
gigantic $900M backlog in 2019 doesn't seem to be materializing after
two years---evidenced by their constant and current need to trade heavily discounted
shares for debt.