NexTech AR Solutions (CSE: NTAR) has halted trading of its equity for the day following a short report that was released by Hindenburg Research earlier this week which highlighted several perceived problems at the firm.
The report, which highlighted what Hindenburg referred to as “relentless stock promotion, sketchy related party transactions, and a vaporware product,” has wreaked havoc on the equity all week as the valuation fell from $2.20 at last Friday’s close as low as $1.17 on Tuesday. An attempt to stifle losses by the issuer on Tuesday temporarily brought the valuation of the firm back up, with the stock closing at $1.88. The selloff has since continued however.
Now, NexTech has halted trading of its equity until Monday as it works to gather a more effective response. The previous response issued largely consisted of a video wherein the firm worked with a paid research firm to attempt to dispute claims made by Hindenburg, however it did little to satisfy the market. A subsequent press release referred to Hindenburg as “fake news.”
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Commenting on the matter, CEO Evan Gappelberg stated, “We are preparing a further response to the short sellers and to all the law firms in the USA that are flooding our company with misleading press releases multiple times per day.”
NexTech AR Solutions last traded at $1.44 on the CSE.
Information for this briefing was found via Sedar and NexTech AR Solutions. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
