The National Securities Exchange Commission requires: griffles Meet all the investors at ScratonAccording to sources familiar with the situation. This holding company was highlighted by the bearish fund Gotham City in this Tuesday’s report, which caused the company’s price to fall by as much as 26% in Tuesday’s session. The investment firm points out that the group’s founding family used this intermediary to “clean up” the company’s accounts and offer investors a lower debt than the group offered investors. The pharmaceutical company argues that the group’s founding family does not have a majority stake in the company and that only three of the holding’s 22 investors are members of the Grifols family. The regulator said this was insufficient and asked him to clarify who those people were related to the group’s founding family and gave him ten days to do so.
The Catalan group has flatly denied all of Gotham’s accusations. Supported by the fact that its accounts are publicly available and audited and approved by KPMG. In order to bring transparency and trust to the market, the company held a conference call this Thursday and answered investors’ questions directly. CEO Thomas Glanzmann is committed to improving governance and communication.
In this telephone meeting, attended by the company’s senior staff (Alfredo Arroto, Víctor Grifols, Raimon Grifols and Thomas Glanzmann), issues such as the group’s large debt or the sale of part of the company’s subsidiary in China were discussed. “Thanks to this sale, we will be able to reduce our sales, which is one of our main goals, and this operation will continue in the coming months.”Raimon Grifols noted.
“Manipulation” accusation
Grifols shares were seriously affected this Tuesday after the Gotham City Investigation report became public, in which the company was accused of manipulating its accounts. The fund, known for analyzing companies for irregularities, claims that the Catalan company concealed part of its debt and that the true value of its shares was “close to zero”. The group “categorically” denied these accusations, and the National Securities Market Commission (CNMV) also refused to suspend the listing, although it was on the table.
The Gotham City Investigation rose to fame 10 years ago for bringing down Gowex and uncovering the financial scandal that led to businessman Jenaro García facing justice in court on fraud charges. Now they point to Grifols. “We believe that investments should not be made in these stocks.”, the report says. “Grifols’ consolidated financial statements and internal controls over financial reporting are robust and subject to periodic and rigorous annual audits,” the company responds.
Just one day later Pharmaceutical company announces legal action against Gotham and appeals to investors. This maneuver served to revive shares, which had fallen as much as 50% when the report was released (25.91% at the close of Tuesday session) and 40% on Wall Street. The company’s replica managed to increase its shares in the Spanish selector by 12%.