/KASE, January 26, 2024/ – Freedom Holding Corp. (USA), whose shares are
officially listed on Kazakhstan Stock Exchange (KASE), has provided KASE with
the following press release dated January 26, 2024:
quote
Freedom Holding Corp. (the "Company") (Nasdaq: FRHC) today announced the
conclusion of an external review commissioned by the independent members of its
board of directors. The external review was into wide-ranging allegations made
about the Company and its business in an August 15, 2023 report published by
Hindenburg Research (the "Hindenburg Report"), an activist short-selling firm
which disclosed having a short position in the Company’s shares. Following the
publication of the Hindenburg Report, although the Company believed the
allegations were meritless and the independent directors have full confidence in
the Company and its business model, the independent members of the Company's
board of directors decided that it was in the best interests of the Company and
its shareholders to conduct an external review of the allegations set out in
the Hindenburg Report.
The independent members of the board of directors engaged law firm Morgan,
Lewis & Bockius LLP and engaged forensic accounting firm Forensic Risk Alliance
to conduct the external review and report on their findings. The review took
place over a period of approximately four months and included document and data
review, site visits to Kazakhstan and Cyprus, data analytics and testing work,
and remote and in-person interviews of many senior management and employees of
the Company and personnel at certain external advisers and counterparties of the
Company. The review focused on the Company's main operating subsidiaries that
were the subject of the allegations as well as on the Company’s affiliate
Freedom Securities Trading, Inc. ("FST Belize"). It was not possible to assess
certain of the allegations in the Hindenburg Report because they were dated,
vague, or lacking details.
The external review found generally that the allegations in the Hindenburg
Report did not take account of important facts and were not supported by
evidence.
unquote
The complete press release is available on –
https://kase.kz/files/emitters/FRHC_KZ/frhc_kz_relizs_260124.pdf
[2024-01-26]