I followed an accusation made and found bio company.
First, today was not a good day for Ginkgo (DNA) stock holders based on a report that was put out by Scorpion Capital. In that report they accused the company of being a hoax and that the company was an elaborate scheme. Interestingly enough, they said that there were companies that were 'shell' companies. These were only there to move money about and look like they were busy.
It states ' The related party "customers" are mostly fronts for Ginkgo and its revenue is therefore an elaborate fiction'.
This intrigued me. So I went to the page they spoke about these companies. The first one mentioned was Joyn Bio. These companies were to have glossy web pages. Now, my thought is that if this were true, then I would see lots of people who were former Ginkgo employees or I would find few if any employees. Shell companies are like that.
First stop was a look at the website. Okay, it is glossy but it's really not such a mystery that I couldn't understand. Some fake companies are hard to nail down what their goals are. This was apparent an agriculture company. My family has quite a bit of farming background, so everything they were saying here made sense, and seemed feasible.
So into Linked In I went. This will be the real point. If they are fake then they will have a bunch of Ginkgo people in there, or not anyone at all. My sleuthing skills aren't great, but the idea is simple, there won't be any real people associated with the company itself. As I went in, I found that their Linked In posts look like their web page. You expect this, but I found they had employees. This is interesting in that Linked In is people who are independently saying they work at a location.
I found lots of people there. I found HR people and there are positions available. I also found bio professionals that are from places like Texas A&M. The Aggies are a good place to get someone who understands agriculture microbes.
The CEO was from the Bayer line. That makes sense. Bayer is an agricultural behemoth. He had spent years there moving up. So... if this were a 'Front' company, it would be a Bayer shell company, not Ginkgo. Bayer is established.
Is this proof, that there is no proof in the charges? Not entirely. What this says is that one of the companies that is mentioned as a front company does not look like a front company. It has a pulse (hiring), it has a purpose (agriculture microbes to produce more nitrogen in the soil), and it has a backstory (people are not just recycled Ginkgo people).
Should you be cautious? Of course. Do I believe the charges? I am now warry of the charges now.