Wargaming Hemorrhaging Money – Financial Shenanigans Part Deux
Well, folks, things are going down hill for Wargaming at break neck speed now. This would of course explain all the blatant money grabbing bullshit over the last year-and-a-half to two years.
Now, for those of you not familiar, we started this site up going on two years ago. One of the first post we made was about the financial shenanigans of Wargaming. You might want to refresh yourself with that before you go any further. You go ahead and catch up. We’ll wait
Now, in order to understand what was actually going on, you have to go a bit deeper into the banking sector that we didn’t really cover in that story.
You see, back in November of 2013, right about the time they were getting their stocks frozen on the Cyprus Stock Exchange, they bought into Hellenic Bank in Cyprus.
Why would you do that? Why would you refuse to release your financial reports and get your stocks frozen on the exchange and ultimately kicked completely off it if you had so much money you were buying into a fucking bank in Cyprus? And not just buying into it, but buying a nearly 30% (26.2%) stake in it?
Well, I can think of two reasons:
- You didn’t have the money. You were lying about your financials (as we pointed out in our original article two years ago) and taking out a shit ton of financing you didn’t really qualify for.
- You were getting HUGE influxes of cash from outside sources and couldn’t explain where it came from legitimately. In other words, you’re fucking laundering money.
Now which of those two it is remains unknown. Frankly, I’m leaning towards number 2. Anywho, on with the show.
So in November of 2013, Wargaming bought in to Hellenic Bank in Cyprus. Now, according to the story, Wargaming spent 40 million Euro for a “near 30% stake” (which we now know was actually 26.2%) making them the second largest shareholder in the bank.
Now, at that time, shares of that bank were running at €4.15 per share.
So if you shelled out 40 million Euro back then, you got 9,638,554 shares. OK. So what’s the problem? Well, the problem is that just two years later they allegedly sold off 50 million shares. Or at least that’s what the article says. But there’s a problem with that – it’s called FUCKING MATH.
Now, Hellenic Bank presently has 198 million total shares outstanding. That’s it. That’s all there is.
Now, if Wargaming owns a 26.2% stake in that bank per the article, then that would be exactly 51,876,000 shares total. So how the fuck can you sell 50 million shares and still own 24.8% of the bank?
You fucking CAN’T. It’s clear it’s a completely bullshit article with no basis in reality written by a fucking half wit that figured nobody would ever bother doing the math.
But most articles concerning Wargaming are, so why are we surprised? Well, frankly, we’re not.
So what we have to do is go back to the beginning and see what the hell happened. If Wargaming bought in for only 40 million Euro, and own 26.2% of the bank at one point we know that comes to just short of 52 million shares by today’s statements on total shares outstanding, but it doesn’t make any sense based on the stock price at the time and the claimed amount they spent. Doing basic math, they only originally bought 9.7 million shares. How the fuck does that work?
Stock Splitting, folks. It’s clear that’s what they did. They bought in and split the flying fuck out of the stock in very much the same way they did their original projections for getting listed on the Cyprus Stock Exchange. It gives them much more stock shares, but they of course have their value absolutely fucking gutted.
So in reality, in late 2015, Wargaming actually sold roughly 726,000 shares if you go by the percentages of the article. The problem with that is that at the time they sold those shares (October of 2015) they were only worth €1.44 each
So that means Wargaming made right at 1 million Euro. That’s it, folks.
Now why the fuck would you do that? Why would you sell stock that had already lost 65% of it’s value?
Well, I can only think of one reason: ABSOLUTE FUCKING DESPERATION.
It gets worse, folks. Thanks to our man in South East Asia, we now know that Cyprus Banks and investors are fucked. He posted this little tidbit of an article the other day:
FINANCE: Foreign capital invested in Cyprus banks takes a battering
02 January, 2019
Foreign investors who put money in Cyprus banks have got little in return, with some seeing the value of their initial investment more than halved.
Despite a promising upturn predicted for Cyprus banks, hedge funds and foreign investors have lost up to 70% of their initial investment.
And that fits, doesn’t it?
Which brings us to where Wargaming is now in that little bank of theirs. According to everything we now know, Wargaming is still holding on to roughly 51 million shares of Hellenic Bank in Cyprus.
Those shares are now valued at €.728.
That is NOT a typo. They’re not even worth one single fucking Euro anymore.
That means that Wargaming have lost their entire ass on that deal. Stock once worth €4.40 when they bought in has lost 83.5% of its value.
No wonder they’re so desperate and launching these ridiculous fucking money grabs lately.
No wonder they’re shutting down offices.
No wonder they’re closing down servers.
No wonder they’re laying off hundreds of workers.
One wonders how much longer they can hold on with shit like this going down. I mean, now that your stock is essentially worthless, how the fuck can you get loans or anything else to keep going?
One thing is for sure: if they’re legitimate, they’re fucked. If they’re laundering money, they MIGHT just survive.