Simon has over six years of professional trading experience across FX, commodities and equities. He has a strong passion for financial markets and is particularly focused on price action trading
Alphawave IP Group PLC (LON: AWE) share price is still trading near the all-time lows hit after the Financial Times published a report regarding conflicts of interest among other company’s executives.
According to the report, Alphawave has a close relationship with one of its key customers VeriSilicon whose founder and chairman, Wayne Dai, is the brother-in-law to Sehat Sutardja, an executive director on Alphawave’s board.
The company, which designs semiconductor chips and licenses its intellectual property to other companies, defended its actions at the time, saying that it had made all the necessary disclosures in its IPO prospectus and other legal documents.
The chip manufacturer also clarified that Wayne Dai and Sehat Sutardja had recused themselves from the meetings that discussed the partnership between the two companies to avoid any conflicts of interest.
However, it seems investors agreed with the FT report, given the over 50% crash that happened after the article was published. Since then, Alphawave shares recouped some of their losses but have fallen back to their initial lows.
Tiger Global Management recently increased its short position in the chip manufacturer to 0.80% from 0.78%, showing the asset manager’s conviction that the shares will trade much lower in the future.
Given that Alphawave shares were trading at 199p when I wrote this article, the shares could trade much lower.
John Lofton Holt, Alphawave’s co-founder and Chairman, is also the founder of Achronix, another semiconductor manufacturer that was planning to list in the US later this year via a merger with a special purpose acquisition company (SPAC).
However, the potential listing is pending after the US Securities and Exchange Commission (SEC) began investigating the SPAC (ACE Convergence Acquisition Corporation) due to certain disclosures in its prospectus. The investigation is still ongoing.
Given the many conflicts of interest associated with its directors and ongoing investigations, I wouldn’t invest in Alphawave shares at current prices.
*This is not investment advice.
Alphawave share price.
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