Technoglass, a Columbia-based producer of glass and aluminum products for industrial and commercial real estate, has surged more than four-fold this year to a market value of $1.61 billion, thanks in part to a post-pandemic South Florida real estate boom. It went public in 2013 through a SPAC transaction with New York-based Andina Acquisition Corporation.
Hindenburg, which has declared a short position in Tecnoglass shares, said it "strongly suspects' the group has faked a significant portion of its revenues, adding that it's found evidence of 'undisclosed related party deals" that took place after management claimed to have remediated the issue.
Officials at Tecnoglass were not immediately available to comment when contacted Thursday by TheStreet.
"Our months-long investigation has included review of US and Colombian court records, securities filings, corporate registrations, property records, export records and media reports going back decades," Hindenburg wrote. "We have identified serious red flags regarding management and numerous undisclosed related party transactions that call the company’s reported financial results into question."
Tecnoglass's U.S-listed shares ended off $12.14, or 36%, at $21.56. Thursday. The stock hit an all-time peak of $34.90 each on November 23.
Hindenburg, founded by analyst Nate Anderson, is best known for helping to reveal reporting irregularities at Nikola Corp. (NKLA) - Get Nikola Corporation Report, which ultimately lead to the resignation of CEO Trevor Milton and the scrapping of an investment stake from General Motors (GM) - Get General Motors Company Report.