“Self-serving, Misleading and Inaccurate”
“ has a history of significant, transparent disclosure to the market, publishing two prospectuses in 2015 and being subject to substantial additional scrutiny through a full UKLA listing process as part of its move to the Main Market of the London Stock Exchange,” it added. “All material information in the report is either factually inaccurate or has been previously disclosed,” it said in an official statement. Paysafe quickly responded, noting Spotlight’s vested interest in messing with its stock. While the practice is arguably unethical, it’s not illegal because evidence suggests that prohibiting short-selling actually has an adverse effect on the market. Since they are now worth less than their selling price, the short-seller can pocket the difference. Short-selling is a process that involves borrowing securities, typically through a broker, selling them, and then buying them back in the event that they depreciate in value. On Tuesday, the day the note was published, the company’s stock plunged by one third. If Spotlights intention was to weaken Paysafe’s shares, it was successful. Spotlight, which disclosed a potential short interest benefiting from any weakness in Paysafe’s share price, said that the payment processor “appears to be enabling both illegal gambling and Chinese capital control evasion through alleged undisclosed related parties run by recent former executives.”īet365 is Paysafe’s biggest customer the online gambling giant’s customer transactions represent some 50 percent of its business through its Neteller, Skrill and the Income Access digital payment brands. The denials come following the publication of a note by US firm Spotlight Research, which accused Bet365 of “operating a business that appears to facilitate and engage in illegal gambling.” Bet365 said it is breaking no Chinese laws by accepting bets from its citizens and accuses a recent note by US company Spotlight Research of being “self-serving and inaccurate.” (Image: )īet365 and Paysafe have strenuously denied engaging in illegal gambling operations in China.
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