Organovo Responds to Citron Report; Says Kanagawa Never Actually Sold Shares to Investors
Organovo responded to Tuesday's report from Citron Research:
“Through investor inquiries, Organovo (NASDAQ: ONVO) became aware of a potential problem with Kanagawa Associates representations of selling Organovo stock at a discount in October 2013. When we received inquiries we explained that we had no relationship with Kanagawa and that our stock was instead publicly traded through licensed broker/dealers. We believe that as a result of our expressed concerns and those of investors, several regulatory agencies including those in Japan and Scandinavia successfully posted warnings about Kanagawa in the territories they were operating, which to our knowledge did not include the United States. To the Company's knowledge, Kanagawa never actually sold shares to any investors, but is alleged instead to have simply accepted wired funds and not returned them. Organovo is unaware of how any such activity taking place outside the equity markets and not involving a broker/dealer who could actually sell shares can be hypothesized to impact the trading price of a NYSE MKT stock that has trading volume of over $60M a day. We sincerely hope that anyone promoting such a hypothesis has an ability to quickly formulate new hypotheses.”
Organovo Holdings closed Tuesday at $10.10, a loss of more than 9% on almost twice average volume
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