NexTech AR Solutions Corp (OTCMKTS:NEXCF) (CSE:NTAR) CEO Evan Gappelberg responded forcefully to an analyst note from Hindenburg Research, a firm that took a short position in the augmented reality company.
NexTech brought together its executive team to respond to what it called “false claims to foment fear and panic” and a $0 price target in a video call with research firm Starwood Research.
“In our commitment to full transparency with our shareholders, NexTech held a video call with Starwood Research, which included all senior members of NexTech’s leadership team,” CEO Evan Gappelberg said in a statement. “In the call, which lasted nearly an hour, NexTech’s CFO, COO, CTO and CEO addressed and disproved all of Hindenburg’s false claims and outright lies especially that [NexTech’s] AR technology is `vaporware.’ The video call shows a real-time demo of NexTech’s AR technologies being used by its customers in real world applications."
In the call, Gappelberg said pointedly that Hindenburg’s explicit goal was to sink its share price.
"Clearly these guys are trying to tap into investors’ fear,” Gappelberg said in the video call. “That is their job, that is what they’re paid to do. First they short, then they create fear, then they buy shares in the market, cover their short, make money, rinse, repeat. These guys have no interest in making money for shareholders of NexTech, in fact they’re praying on your fear. They’re trying to stimulate you to sell so that they make money.”
Shares of NexTech dropped 21% to US$1.29 on OTC Markets and 23% to C$1.69 on the CSE on Monday in the wake of the report. Since the beginning of February, the stock has fallen 42% on both exchanges from US$2.25 and C$2.94, respectively.
Separately, the company announced that Gappelberg will be presenting at Wall Street Reporter’s NEXT SUPER STOCK livestream conference at 1:30 pm ET on February 11.
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