Bio-med firm takes on short sellers
02 January 2012 Los Angeles
Image: Shutterstock
Ampio pharmaceuticals believes that increased volatility and volume in its common stock was a result of factually inaccurate and purposely misleading information being published on the internet.
Dramatic short selling which drove down Ampio's share price was reportedly spurred by funds and individuals on Wall Street. The coordinated attacks were believed to be part of a bigger effort by numerous individuals who had taken large short positions in the stock in anticipation of a "leaked" financing that was rumored to have been announced.
According to Bio-Med Reports, recent data shows nearly a 6 per cent increase in short interest with as much as 12.9 per cent of the stock's float now positioned to the down side. In addition, the short sale volume in the stock rocketed to 25.7 per cent shortly after a sharp drop in the stock's price. Nasdaq officials who were contacted about the situation directly by Bio-Med Reports would say only that they have been closely monitoring the situation.
Ampio officials stated that they are investigating the claims that were made and that they intend "to take necessary legal measures to protect officers of the company and its shareholders".
Investment advisory website, Seeking Alpha, admitted on their website that the substantial criticisms of Ampio a recent published article had made, proved to be "quite poorly researched".
Dramatic short selling which drove down Ampio's share price was reportedly spurred by funds and individuals on Wall Street. The coordinated attacks were believed to be part of a bigger effort by numerous individuals who had taken large short positions in the stock in anticipation of a "leaked" financing that was rumored to have been announced.
According to Bio-Med Reports, recent data shows nearly a 6 per cent increase in short interest with as much as 12.9 per cent of the stock's float now positioned to the down side. In addition, the short sale volume in the stock rocketed to 25.7 per cent shortly after a sharp drop in the stock's price. Nasdaq officials who were contacted about the situation directly by Bio-Med Reports would say only that they have been closely monitoring the situation.
Ampio officials stated that they are investigating the claims that were made and that they intend "to take necessary legal measures to protect officers of the company and its shareholders".
Investment advisory website, Seeking Alpha, admitted on their website that the substantial criticisms of Ampio a recent published article had made, proved to be "quite poorly researched".
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