SPI Energy Co., Ltd (Nasdaq: SPI): The Perpetual Pump and Dump – Electric Vehicles Will Be No Different

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  • We believe SPI is an egregious pump and dump company. The company’s stock has had a date with almost all the hottest trends in the recent two years, including Cryptocurrency, CBD, and now Electric Vehicles.
  • The stock tells a repetitive story of pumping the stock on news of hot strategic establishment, followed by aggressive PR campaigns and ultimately a failing value proposition.
  • In early 2018, SPI launched its cryptocurrency platform, which we believe has never been operational. Today it contributes abysmal revenue.
  • In September 2019, SPI launched its hemp and CBD business amongst the cannabis hype. Once again, it was followed by multiple PR campaigns. However, the business never came to fruition. Recently it was reported that the whole growth facility would likely be shut down.
  • Recently in September 2020, SPI launched a company called EdisonFuture Inc., focusing on the design and development of electric vehicles (EV) and EV charging solutions. Through desktop research and on the ground research, we present overwhelming evidence that this will also fail.
  • Most notably, we found out that the key Chinese EV partner doesn’t have any current operations and all business was halted over a year ago. Site visits and calls with distributors confirmed our suspicions.
  • We identified that the CEO of SPI is a wanted fugitive in China. He has also been involved in another public company that went bankrupt prior to joining SPI.
  • The company has numerous convertible bonds in default, indicating poor capital management, poor investment decisions and poor operations.
  • The company’s current auditor is of such low credibility that PCAOB has prohibited them from conducting China Audits.
  • As if their core business wasn’t weak enough, 80% of the company’s core solar revenue is at risk due to a lawsuit that occurred in May 2020.
  • We see a clear pattern of pump and dump, riding on trends. With a negative book value of equity, we believe the stock will at best return to previous levels, at worst quickly become another one of the CEO’s bankrupt companies.

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Grizzly Research LLC is focused on producing differentiated research insights on publicly traded companies through in-depth due diligence.