GCT

GigaCloud Technology refutes short-seller report

GigaCloud Technology Inc (NASDAQ: GCT) has responded to a report by Grizzly Research LLC, a short-seller, by refuting the claims made in the report. The company has addressed specific allegations and provided data to support its response.

Regarding web traffic, the company explained that the report cited misleading third-party data on search traffic, which does not reflect overall visitor traffic to the company’s website. GigaCloud revealed that its website had roughly 130,000 total visits and 11,000 unique visitors in April 2024, according to estimates from a third-party's traffic analytics tool. The company emphasized that its marketplace is a business-to-business (B2B) platform and the level of website traffic is consistent with its disclosures of approximately 5,010 active buyers on its marketplace during 2023.

In response to the claim of undisclosed related party transactions, GigaCloud stated that the allegations were false and misleading, emphasizing that its B2B marketplace has substantial monthly traffic. The company also highlighted that it has disclosed all related party transactions required by the applicable rules and accounting standards in its filings with the U.S. Securities and Exchange Commission (SEC). GigaCloud further defended the legitimacy of sales made through certain entities, stating that these transactions represent legitimate sales that can be validated through delivery records and are corroborated by the company's reported expenses for delivery and logistics services.

The company cautioned investors about the nature of the claims, pointing out that they come from a short seller and encouraging them to review materials filed by the company with the SEC and available on its investor relations website.

GigaCloud Technology Inc is a pioneer of global end-to-end B2B technology solutions for large parcel merchandise. The company's B2B ecommerce platform, known as the "GigaCloud marketplace," connects manufacturers, primarily in Asia, with resellers in the U.S., Asia, and Europe, facilitating cross-border transactions. The company offers a comprehensive solution that transports products from the manufacturer's warehouse to the end customer's doorstep at a fixed price. GigaCloud initially focused on the global furniture market and has since expanded into additional categories such as home appliances and fitness equipment. The market has reacted to these announcements by moving the company's shares 7.9% to a price of $32.2. For the full picture, make sure to review GigaCloud Technology's 8-K report.

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