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Great Panther Silver Defends Itself Against StreetSweeper Allegations

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Great Panther Silver Defends Itself Against StreetSweeper Allegations

Earlier Monday, TheStreetSweeper issued a report saying Great Panther Silver Ltd (NYSE: GPL) was an overvalued mining company set perfectly to "cave in." The notable short seller listed six items they believe warrant a drop in current shares.

  • Enlisting National Inflation Association to promote the stock.
  • Rodman & Renshaw raised their price target from $1.10 to $1.50 per share, and then financed a deal for Great Panther six days later.
  • The lack of institutional interest in the company.
  • StreetSweeper believes it's "fool-hardy" to risk millions without reserve estimates for any of company's mines or projects.
  • The market missed a negative news event where the company dropped out of a key project, the Guadalupe de los Reves.
  • StreetSweeper believes even a slight pullback in silver would have a drastic effect on Great Panther stock price.

Great Panther Silver investor relations responded to Benzinga, saying the report was "riddled with inaccuracies." The company said, "We have never been contacted by NIA nor have they contacted us. There is no relationship with NIA."

Great Panther said institutional ownership is up from 5 percent to 14 percent.

Responding to StreetSweeper's funding issue, Great Panther Silver said much of the industry is raising cash and its facility could be put to use for any future acquisitions. The company reiterated that it raised cash in the least dilutive way possible to protect shareholder value.

To summarize, both sides have obvious financial interest for the stock to go higher or lower. Shareholders will have to remain watchful of the price of silver, as well as how this story continues to unfold.

Shares closed down 14.35 percent at $1.85.

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