Based on new information we’ve obtained, Gotham City Research believes:
- Ebix improperly financed $100+ million of acquisitions and stock buybacks, tax free, under the guise of a bogus intercompany asset sale, between Singapore & India.
- Ebix Inc. & its subsidiaries’ filings are materially incorrect. Newly identified accounting irregularities, in sum, exceed 42% of Ebix’s market capitalization ($169+ million in irregularities).
- Swedish pre-tax income is less than %1 of the amounts claimed in the SEC filings, according to Swedish filings.
- BDO Sweden was unable to confirm that any of the dealings between Ebix’s Swedish subsidiary, Ebix Singapore and Ebix Australia, ever actually occurred.
- Ebix meets the requirements for an “Event of Default”, per Article VII (c) of the Credit Agreement.
- Current shareholders are likely to recover little to no value, once the USA & Ebix’s creditors enforce their rightful claims.