MADRID: Shares in Gowex, a Spanish provider of wireless Internet access in public spaces, nearly halved on Tuesday after short-seller Gotham City Research issued a report alleging the company inflated revenue.
Gowex said the report "has major factual inaccuracies and false statements" which its considers to be "defamatory".
"From a non-signed document, the only objective sought by Gotham City Research is deliberate damage both to the share price and to Gowex's image for its sole benefit," the company said in a statement.
Gowex shares closed down 46.21 percent at 9.20 euros on a day which saw the Ibex-35 index of most traded Spanish shares close up 0.77 percent. Gotham City Research called Gowex a "charade" in its report.
It estimated that Gowex's "actual" wireless revenues are "at most" 10 percent of what the company reported and that 90 percent of its telecom revenue "originated from undisclosed related parties".
Gowex said no one from its management or investor relations team had met with Gotham City Research employees.
The company said it "will not hesitate o take any legal actions against people responsible for this report".
Gowex has agreements with over 90 cities worldwide, including Paris, New York and Madrid, to provide wireless Internet access in streets, parks, public transportation and other public spaces.
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