- In its Textura (TXTR -14.9%) report, Citron Research notes the company removed statements in its S-1 boasting of "high client retention" and "growing demand from our increasingly multinational clients" after being asked by the SEC to substantiate its claims.
- Citron also observes CEO/co-founder Patrick Allin was once the CEO of CPFS, a company that traded on the pink sheets and which (according to FINRA) had no revenue and minimal assets, and that Allin's counterpart in transactions carried out by CPFS is in prison for charges related to stock fraud.
- Citron also asserts: 1) One of the selling shareholders in Textura's IPO (ACPP Capital) is owned by individuals associated with underwriters William Blair and Barrington Research. 2) 62.8% of Textura's revenue comes from a payment management app that is "nothing more and nothing less than a utility software program to manage the submission of signed Lien Waiver forms." 3) Textura has limited visibility into future sales, since subcontractors using its software have no need to subscriber once a project is finished.
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Dec 26 2013, 11:54 ET