L&L Energy Responds to Short Seller Article, to Form Special Committee to Investigate, Says GeoInvesting Hasn't Contacted Co.
L& L Energy, Inc. (NASDAQ: LLEN) ("L&L" or the "Company"), a U.S.-based company with a track record of profitable energy (coal) operations in China, today responded to the GeoInvesting allegations made on seekingalpha.com.
The Board of Directors of L&L Energy states that it is unaware of inaccuracy with respect to material facts or material omission contained in its filings with the United States Securities and Exchange Commission. The Company further believes GeoInvesting's report to be inaccurate and defamatory. GeoInvesting has disclosed its short position in L&L, and therefore stands to realize significant gains by releasing this report, anticipating the Company's share price to decline.
Dickson Lee, Chairman and CEO, commented, "GeoInvesting has made false and misleading statements about the Company in the past, while admitting they were actively shorting our stock. We were informed that there were unusually high put option activities yesterday which are set to expire tomorrow. GeoInvesting has made no attempt to reach out to L&L to discuss or verify any of these false allegations. We will exhaust our resources to respond and protect our shareholders, including exploring filing formal complaints with the appropriate regulatory bodies."
L&L's Independent Board Members are forming a special committee with counsel's guidance to fully investigate this allegation.
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