(MENAFN- PR Newswire) SAN DIEGO, April 6, 2021 /PRNewswire/ -- Shareholder rights law firm Johnson Fistel, LLP is investigating potential violations of the federal securities laws by Ebang International Holdings Inc. ("Ebang" or the "Company") (NASDAQ: EBON ).
On or about June 26, 2020, Ebang sold about 19.3 million shares of stock in its initial public stock offering (the "IPO") at $5.23 a share, raising nearly $101 million in new capital.
On April 6, 2021, Hindenburg Research issued a report concerning Ebang wherein Hindenburg Research detailed a series of disturbing red flags about Ebang. Specifically, the report stated, "While the company represented that it would use the majority of its numerous capital proceeds to develop its business operations, our research discovered it instead directed much of the cash out of the company through a series of opaque deals with insiders and questionable counterparties."
Following this news, the price of Ebang common shares fell 12.91% on April 6, 2021.
Specifically, Johnson Fistel's investigation seeks to determine whether the Company's filings with the U.S. Securities and Exchange Commission in connection with its June 2020 IPO and subsequent investor communications contained untrue statements of material facts or omitted to state other facts necessary to make the statements made therein not misleading concerning the Company's business, and operations.
If you have information that could assist in this investigation, including past employees and others, or if you are an Ebang shareholder and are interested in learning more about the investigation, please contact Jim Baker ( [email protected] ) by email or phone at 619-814-4471. If emailing, please include a phone number.
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About Johnson Fistel, LLP: Johnson Fistel, LLP is a nationally recognized shareholder rights law firm with offices in California, New York and Georgia. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits. For more information about the firm and its attorneys, please visit . Attorney advertising. Past results do not guarantee future outcomes.
Contact: Johnson Fistel, LLPJim Baker, 619-814-4471 [email protected]
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