13th Dec 2016 14:08
LONDON (Alliance News) - Paysafe Group PLC Tuesday said it was aware of a report published by an organisation known as Spotlight Research, and said that "all material information in the report is either factually inaccurate or has been previously disclosed".
This was in response to a sharp drop in the company's share price which saw it hit a three-year low of 229.21 pence Tuesday. Shares in Paysafe were down 9.2% at 336.60 pence Tuesday afternoon.
Spotlight Research's report alleged that Paysafe's largest customer may represent around 50% of the company's earnings and is operating a business that "appears to facilitate and engage in illegal gambling", amongst other claims.
FTSE 250-listed Paysafe said Tuesday that it has a history of "significant, transparent disclosure to the market, publishing two prospectuses in 2015 and being subject to substantial additional scrutiny through a full UKLA listing process as part of its move to the Main Market of the London Stock Exchange".
It noted that Spotlight Research has disclosed a potential short interest benefiting from any weakness in Paysafe's share price.
Paysafe said that its business continues to perform well. It expects to next update the market January 12.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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