Boston, MA 11/05/2013 (wallstreetpr) – NQ Mobile Inc. (NYSE: NQ), who was called a big fraud by Muddy Waters Research Group, has released details of its bank accounts and threatened to take legal action against Muddy Water. NQ said that Muddy Water’s allegations are absolutely wrong and inaccurate. The company also said that a committee of independent directors would investigate them.
On Thursday Muddy Waters had said that NQ had no cash balance and claimed that 72% of its total revenue generated in 2012 from the sales of its security products In China was false. NQ responded to these allegations by giving out a list of its Bank accounts that showed it had a cash balance of about $295 million.
Muddy Waters was not convinced by this and asked NQ to get it confirmed by independent capital confirmation firms.
In other news the company announced that it has completed the transfer process of approximately RMB 100 million (or USD $16.4 million) to a bank account opened at Standard Chartered Bank (the “Standard Chartered Account”) of the companies term deposits which were earlier held at Industrials Bank Co. Ltd.
The new account was opened this week and the first term deposit of about RMB 100 million (or USD $16.4 million) has been shifted to the account in Standard Chartered bank. The outstanding part of the $100 million the company has said it will transfer soon. It has allowed Standard Chartered Bank to get the figures independently verified and give the related information to any investor who is interested in the same. The company will surrender a portion of its earned interest and will update on its impact in the company’s third quarter earnings release which are due to be given out on November 12, 2013.
The co-CEO and co-Founder of NQ Mobile Dr. Henry Lin said that the company was focused on running its operations and the management and senior leaders were committed to the terms of financial transparency.
Following the transfer of the above mentioned money, which is supposed to be completed soon, the company will continue to operate its already existing accounts in the Hong Kong based branches of Standard Chartered Bank and HSBC, where the earnings from its recent convertible bond sale that total almost USD $166 million will continue to stay. The company also holds several other bank accounts which have cash that it uses to meet its operating expenses.
