EBON - Why Ebang International Stock Fell Sharply Today
Shares of Ebang International Holdings (NASDAQ: EBON) fell sharply on Tuesday morning after Hindenburg Research published a short report on the company, alleging it's secretly making off with investors' cash. As of this writing, the company hasn't publicly responded to Hindenburg. As of 10 a.m. EDT, Ebang stock was down 20%.
At the risk of oversimplifying the lengthy report by summarizing, Hindenburg questions Ebang's business. It notes the company's history of new product and service announcements, frequently followed by stock offerings. Despite raising well over $100 million from its initial public offering ( IPO ) last year and subsequent follow-on offerings, it keeps finding itself in need of more cash. Hindenburg believes the money is being used for things other than its expressed purpose, including benefiting insiders and their relatives.
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Why Ebang International Stock Fell Sharply Today