Nanox Imaging Overview
In August 2020, a company in possession of disruptive technology within the medical device sector, Nanox (NNOX), held a successful IPO on the NASDAQ exchange. Subsequently, in September 2020, two investment research firms known for their investigative reports into allegedly overvalued or fraudulent companies (specializing in advising investors on opportunities for short selling, AKA shorting overvalued stocks), Citron Research and Muddy Waters Research, released two “Short Sellers Reports” that alleged various forms of misconduct surrounding the Nanox company.
Upon analysis, it is clear that the Short Sellers Reports produced by the investment research companies were part of an orchestrated media attack aiming to promote short-sale-related capital gains by artificially lowering the share price of Nanox. As can be seen in the NASDAQ images below, this planned attack was successful. The share price of NNOX was favourably high prior to the release of the reports in the beginning of September 2020, and dropped significantly upon their release by Citron and Muddy Waters, and then again increased and stabilized in the end of November 2020. Furthermore, the fact that the Citron report has recently been moved into their archive provides some ancillary indication that this was, in fact, a planned short selling action