Turmoil at Gowex Pushes Companies on MAB to Leave Exchange

World Wide Web Ibercom SA and EBIOSS Energy AD (EBI) are among companies seeking to move to other exchanges as their shares fell on Madrid’s Alternative Stock Market after Let’s Gowex SA reported false accounts.

Ibercom called a shareholders meeting for Sept. 4 to approve plans to leave the exchange, also called MAB, and trade on the main bourse, the Internet and phone company said in a filing today. EBIOSS, which makes waste gasification power plants, will seek approval for its shares to trade elsewhere, the company said in a filing.

Gowex, a Wi-Fi provider listed on MAB, said yesterday it would file for insolvency after Chief Executive Officer Jenaro Garcia admitted he’d presented false accounts for at least the past four years. Gowex is one of 23 stocks on MAB, which is used to help small and medium-sized companies seek financing from investors.

“There is a lot of emotion and reaction that is not based on objective facts in the market right now,” Ibercom Chairman Meinrad Spenger said in a phone interview today. “The market has suffered but we have to differentiate solid companies from companies that committed fraud.”

Ibercom shares fell as much as 16 percent today while Neuron Biopharma SA (NEU), a biopharmaceutical company, fell as much as 21 percent.

Photographer: Niall Carson/Press Association via AP Images

The board of Let’s Gowex SA accepted chief executive officer and founder Jenaro Garcia’s resignation after he took full responsibility for fake accounts, the company said in a regulatory statement. Close

The board of Let’s Gowex SA accepted chief executive officer and founder Jenaro... Read More

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Photographer: Niall Carson/Press Association via AP Images

The board of Let’s Gowex SA accepted chief executive officer and founder Jenaro Garcia’s resignation after he took full responsibility for fake accounts, the company said in a regulatory statement.

Suspended Trading

Let’s Gowex shares have dropped 60 percent since July 1, when short-seller Gotham City Research LLC said the startup was worthless because it inflated revenue. Trading in the stock has been suspended since July 3.

Ibercom had already been talking with investors about leaving the MAB, said Spenger. “We have to demonstrate that we are a solid company and that we will face the market with absolute transparency.”

The decision by EBIOSS to seek to trade on the Spanish stock exchange is a logical step and part of the “natural evolution of a company that has matured in a market such as MAB, but which has evolved and set out new challenges,” Chairman Oscar Leiva said in an e-mailed statement.

Carbures Europe, an engineering company specializing in carbon fiber, fell as much as 21 percent today, paring gains this year to 73 percent. Carbures said today it hired Spanish investment-services company Renta 4 to co-ordinate its stock listing after saying in recent months that it wanted to trade on the continuous market of the official stock exchange.

The value of traded shares today on MAB was about 20 million euros ($27 million), compared with about 3 billion euros for the total market, said a spokesman for Bolsas y Mercados Espanoles, the exchange operator.

To contact the reporter on this story: Charles Penty in Madrid at cpenty@bloomberg.net

To contact the editors responsible for this story: Vidya Root at vroot@bloomberg.net Kim McLaughlin, Kenneth Wong

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