PolarityTE Inc. shares dropped more than 20% in Monday trading after short-seller Citron Research publicly called the company a “fraud.” Citron accused the company of raising money based on a patent application that was rejected earlier this month, and called on the Securities and Exchange Commission to investigate. “The SEC should halt this stock immediately before insiders are allowed to enrich themselves
even more as the company continues to deceive investors,” Citron wrote in what it said would be the first of a two-part series on the company. PolarityTE, which says it seeks to market wound-care technology, had seen shares rocket more than 87% higher in the past three months, as the S&P 500 index has gained 6.4%.
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