QCM: Akazoo is a ‘castle of cards’

The Quintessential Capital Management fund, whose managing partner Gabriel Grego was instrumental in revealing the true state of Greek jewelry company Folli Follie, has now claimed in a report that music streaming company Akazoo SA will be the next Greek enterprise to crumble. Akazoo, listed on the Nasdaq since last September, is accused of trying to profit at its shareholders' expense.

QCM argues that Akazoo, which is domiciled in Luxembourg, pertains to be a successful multinational with revenues, earnings and users to rival industry giants Pandora and Tidal. However, QCM counters this may be just a "tiny loss-making company based in Greece" with a negligible user base and sales. It adds that Akazoo only has 26 employees.

In September 2019 Akazoo began trading on the Nasdaq through a reverse merger after being part of Greek company InternetQ, which was listed on the...