SharonAI ‘built on phantom contracts and questionable financing,’ Bleecker says

Funds managed by Bleecker Street are short SharonAI (SHAZ), the short seller announced, alleging that CEO James Manning is “running the same playbook he ran at Mawson Infrastructure,” which is “suing him for allegedly routing $11.5 million through Flynt ICS, a shipping company he controlled.” The firm added: “We believe the ESDS contract cannot perform. We believe the USD.AI and Digital Alpha facilities will not be executed on the terms announced. We believe the sell-side models built on these assumptions will require material revision. The Oaktree convert tells us management agrees: if the announced facilities and the announced contract were sufficient to fund the build, SharonAI would not have signed a $350 million senior unsecured note at 6 percent with a 20 percent conversion premium and a 4,068-GPU closing condition.”