DeFi
DeFi Technologies responds to misleading report on short circuits and distortions
TORONTO, June 19, 2024 /PRNewswire/ – DeFi Technologies Inc. (the “Business” Or “DeFi Technologies“) (CBOE CA: DEFI) (GR: R9B) (OTC: DEFTF), a fintech company pioneering the convergence of traditional capital markets with the world of decentralized finance, has been made aware of a report of the “short and distortion” type published by CoinSnacks.com (THE “Report“) in respect of the Company.
The report lacks merit and contains numerous defamatory, selective, inaccurate, incomplete and misleading statements, speculations and insinuations. Additionally, the Company believes, for the reasons stated below, that the report may have been commissioned by short sellers as part of a coordinated effort to drive down the valuation of the Company’s common stock ( there “Actions“) to cover short positions, a tactic that short sellers are commonly deployed when a company is successful and short sellers find themselves on the wrong side of a short trade. Recently, the Securities Exchange Commission (the “SECOND“) has brought this unscrupulous practice of short sellers to light, as evidenced by recent charges against short sellers known to employ such tactics (see https://www.sec.gov/enforce/ap-summary/ia-6622-s). The example provided is for illustrative purposes so that the investing public understands how this type of reporting can be used for improper purposes and should not be construed as an accusation by the company in the case of the report against the fund recently charged by the SEC.
On June 10, 2024, the Company was approached unsolicited by a Canadian investment bank (the “Bank“) on a potential underwriting offer of 15 million US dollars (the “Offer“). The Company declined this Offer given its publicly disclosed strong cash position:
- on May 7, 2024when the Company announced that it had repaid US$19.5 million in debt;
- on May 15, 2024when the company announced its strong first quarter 2024 results, including positive operating revenue and net operating profit, and its DeFi Alpha trading unit generated US$40 million;
- on June 3, 2024, when the company announced that DeFi Alpha had generated an additional $43.4 million, for a total of $83.4 million; And
- on June 6, 2024when the company announced its normal course issuer bid along with approximately US$51 million in cash on hand as well as 110 BTC.
The Company further found the offer peculiar given that (a) the Bank had previously admitted in court filings in Canada that it had a history of acting on behalf of short sellers, (b ) the Bank informed the Company that a hedge fund existed. participant in the Offer who has never met the Company and (c) the Company has an extremely strong cash position, of which the investing public and hedge funds were aware. Accordingly, the Company contacted each of the Canadian investment regulators (“CIRO“) on June 10, 2024 and June 13, 2024 and OTC Markets (“Over the counter“) on June 13, 2024 with respect to the supply and possibility of market manipulation by short sellers of the shares, including the possibility that a “short sale and distortion” report will be issued so that short sellers short sellers who engage in activities. unscrupulous investors and market participants should be prosecuted to defend fair and transparent financial markets.
The Company believes that the coordinated efforts of short sellers and the issuance of misleading reports about public companies constitute market manipulation, as evidenced by recent SEC orders. All shareholders of the Company are encouraged to review the Company’s public disclosure record at www.sedarplus.ca.
About DeFi technologies
DeFi Technologies Inc. (CBOE CA: CHALLENGE) (GR: R9B) (OTC: DEFTF) is a fintech company pioneering the convergence of traditional capital markets with the world of decentralized finance (DeFi). Focusing specifically on industry-leading Web3 technologies, DeFi Technologies aims to provide widespread investor access to the future of finance. Supported by an esteemed team of experts with extensive experience in financial markets and digital assets, we are committed to revolutionizing the way individuals and institutions interact with the evolving financial ecosystem. Join the DeFi Technologies digital community on Linkedin And Twitterand for more details visit https://defi.tech/
Caution regarding forward-looking information:
This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements regarding the development and listing of future ETPs; the regulatory environment as it relates to the growth and adoption of decentralized finance; the pursuit by the Company and its subsidiaries of business opportunities; and the merits or potential returns of such opportunities. Forward-looking information is subject to known and unknown risks, uncertainties and other factors which may cause the actual results, level of activity, performance or achievements of the Company, as the case may be, to be materially different from those expressed or implied by such forward-looking information. These risks, uncertainties and other factors include, but are not limited to, the acceptance of ETPs by exchanges; the growth and development of the decentralized finance and cryptocurrency sector; rules and regulations regarding decentralized finance and cryptocurrency; general uncertainties related to business, economics, competition, politics and society. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or hoped for. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update any forward-looking information except in accordance with applicable securities laws.
SOURCE DeFi Technologies Inc.