Citron Research calls into serious question the press release distributed today by Medis Technologies (NASDAQ:MDTL) regarding the sale of product to Microsoft. We are not fully ready to declare this a fraud yet, but here are the clues that tell us that something is very wrong with todays press release:
We called Medis Technology and spoke to Deputy Chairman/COO/Treasurer Howard Weingrow. When asked how much the sale was for and the name of a contact at Microsoft, he responded that he did not have the purchase order in front of him and could not answer those questions. This is supposed to be the company’s first sale, yet the COO does not even know how the sale was for.
The press release did not name a contact person or even a group at Microsoft and contained no quote from a Microsoft representative.
The usual Microsoft Corp. trademark identifiers were missing.
The press release said “delivery” but when did they sign the contract? The same day ?
In the past Medis has put out press releases regarding sales that have never occured. http://www.medistechnologies.com/news.php?op=a&id=46
The two people we spoke to in Microsoft’s corporate communications did not know about this press release. We will keep you updated on any developments.
We note that Medis has reported less than $1 million in revenue in the entire span of the last five years. During that time the share count has increased over 41%. We guess $664 million (market cap) just doesn’t buy what it used to…..
It is the opinion of Citron that there is a lot more to this story. We have been promised a product for years, and instead we have a long trail of nothing more than broken promises from management. If this press release is true, than it is time for the company to step up with confirmation and disclosure of the material details.