Shares of Lightwave Logic (NASDAQ:LWLG) plunged as much as 15% lower following a short report from Kerrisdale Capital. Kerrisdale, led by its founder Sahm Adrangi, is a hedge fund with over $550 million in assets under management.
In the report, Kerrisdale believes that Lightwave has been stuck in a “development stage” for more than thirty years. However, the company claims that its products will enable optical communication speeds that are two to three times greater than current industry standards. The short-seller believes this is a lie.
Since its initial public offering (IPO) 15 years ago, Kerrisdale points out that Lightwave has only generated about $6,000 in revenue. Despite “prototype completions, product tests, and patents over that time,” the company has yet to release a single commercial product. In addition, the hedge fund was unable to find any of the the company’s technological innovations in industry scientific journals.
With that in mind, let’s jump into the details of the report.
Kerrisdale Capital Releases Short Report on LWLG Stock
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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