A2Z Smart Technologies: Used To Be Called Inrob Tech (A Pump And Dump Scam), Management Has A Shady Past, and Related Party Transactions – 50c Price Target – White Diamond Research
Exposing A2Z Smart Technologies (AZ) stock fraud: White Diamond Research reveals pump-and-dump scheme, questionable leadership, minimal revenue, and projected 85% stock price decline to $0.50 per share.
A comprehensive bearish research report on A2Z Smart Technologies (AZ) by White Diamond Research reveals a company with troubling leadership history, questionable related party transactions, and minimal commercial success—projecting an 85% stock price decline to just $0.50 per share.
Stock info:
- Ticker: AZ (NASDAQ)
- Position: White Diamond Research is short AZ shares
Why it matters:
- Recycled Pump and Dump Scheme: AZ is essentially a rebranded version of Inrob Tech, a failed company whose hedge fund backers faced SEC fraud charges and whose general counsel was imprisoned for pump-and-dump facilitation.
- CEO's Concealed Past: CEO Joseph Bentsur deliberately omits his leadership of Inrob Tech from his official biography, raising serious transparency concerns.
- Suspicious Related Party Transaction: Bentsur sold his 77.51% stake in Cust2Mate to AZ for just $1.566M, then awarded himself nearly $1M in annual compensation despite the company's mere $2.685M in 2021 revenue.
- Single Non-Viable Product: Despite claims of multiple advanced technologies, only the Cust2Mate smart cart actually exists—and with minimal market adoption, no patent protection, and prohibitive unit costs ($5K-$10K).
- Unsustainable Financials: Q4 2021 showed $3.85M in operating losses against just $487K in revenue, with bloated expenses including $4.4M for payroll and professional fees.
- Imminent Dilution: An upcoming CAD$64M equity raise will likely crush the already-inflated share price, bringing it closer to the company's dwindling cash value.
Between the lines:
- AZ's origins trace back to 1988 with Israeli company Eligal Laboratories, which eventually transformed through a reverse merger into a public U.S. entity.
- Despite claiming to offer "military-grade" autonomous robots and advanced smart cart technology, the company holds only one patent and one pending application—neither covering its flagship product.
- For AZ to achieve profitability, it would need to sell over 2,000 smart carts annually—an unrealistic target in a market where smart carts face significant adoption barriers.
- The company hired 22 additional employees in 2021 to supposedly meet "high demand," yet revenue remained minimal, suggesting manufactured hype rather than genuine business growth.
- AZ's stock currently trades around $3.50 despite previously selling 13.25 million units at only CAD $0.625 each—a price disparity that White Diamond Research believes is completely unjustified.
FAQs:
What is the Cust2Mate product and why is it important to AZ's business?
Cust2Mate is a "smart shopping cart" that allows customers to scan items as they shop without visiting a traditional cashier. It's critically important because it's AZ's only functional technology product, accounting for approximately 28% of the company's 2021 revenue.
What evidence suggests AZ is a continuation of a previous "pump and dump" scheme?
The research identifies several connections: AZ is led by Joseph Bentsur, who previously ran Inrob Tech (a company whose backers faced SEC fraud charges); the technologies offered are remarkably similar; and Bentsur deliberately omits his Inrob Tech leadership from his official biography, suggesting an attempt to distance himself from this problematic past.
Why does White Diamond Research believe AZ's stock will fall to $0.50?
The price target is based on several factors: the company's minimal revenue compared to its enterprise value of approximately $100M; high cash burn rate; an upcoming equity raise that will dilute shareholders; lack of patent protection for its main product; and the historical pattern of similar companies eventually trading near their cash balance.
What are the primary challenges facing AZ's smart cart business?
Key challenges include: high unit costs ($5K-$10K per cart); low margins in the grocery sector; risk of theft or damage; uncertain consumer adoption; lack of patent protection; and the need for high sales volume (2,000+ units annually) to achieve profitability—all in a market where smart carts are not yet mainstream.
How does AZ's corporate history raise red flags?
AZ evolved through a reverse merger from a Vancouver shell company and has roots in a decades-old Israeli entity. Its predecessor company, Inrob Tech, collapsed amid fraud allegations against its backers. The company's current leadership deliberately obscures this history while engaging in questionable related party transactions and maintaining excessive executive compensation despite minimal revenue.
What similarities exist between AZ and other failed technology companies?
The report draws parallels to companies like AuthID, FRSX, and Nano Dimension, which followed similar patterns: overpromised technology capabilities, minimal commercial traction, excessive promotional activities, and eventual stock price collapses as enterprise values approached cash balances.
Disclaimer
This summary is based on a report by White Diamond Research. For the full, detailed analysis, please refer to the original source material: https://whitediamondresearch.com/research/a2z-smart-technologies-used-to-be-called-inrob-tech-a-pump-and-dump-scam-management-has-a-shady-past-and-related-party-transactions-50c-price-target/
ShortReport.fyi is not the author or originator of the content provided in this publication. We act solely as a distributor of the content and do not endorse, verify, or take responsibility for the accuracy, completeness, or reliability of the information presented. Each author retains full ownership and responsibility for their respective content, including any opinions, projections, or analyses expressed therein.
This publication is for informational purposes only and should not be construed as legal, business, investment, or tax advice. Readers are advised to consult the original source material and seek guidance from qualified professionals before making any decisions based on the information contained herein.
ShortReport.fyi disclaims all liability for any loss or damage arising from reliance on the content provided by third parties. The views expressed in these materials are solely those of the respective authors and do not necessarily reflect the views or opinions of ShortReport.fyi.