Pittsburgh and Berlin-based RenovaCare said it notified regulators at the Financial Industry Regulatory Authority about a video showing the alleged predatory trades by FINRA members.
“RenovaCare has informed investigatory agents of FINRA about these extensive and, in the company’s opinion, potentially illegal, on-going predatory trading practices, engaged in by certain FINRA member firms, as more fully shown in the video. These firms may be covertly collaborating with the short seller syndicate targeting the company,” according to a press release. “The Company is proceeding with the filing of a formal complaint regarding these ‘bear raid’ trading practices with both FINRA and the SEC and will explore all potential private legal remedies available to it.”
Last month RenovaCare struck back at Streetsweeper after the short-seller released a scathing review of the company that was skeptical of its ability to hold its market valuation. The so-called “short and distort” campaign included unfounded insider trading allegations, the company said.
“RenovaCare confirms that none of its officers and directors have ever sold any company shares; and, its majority stockholder, Kalen Capital Corp., has not sold any company shares since 2008. In fact, Kalen Capital Corporation has been a major supporter, having invested, since 2008, an additional $5.7 million,” RenovaCare said in the release. “RenovaCare strongly believes that it has an obligation to protect its stockholders from adverse financial and reputational harm caused by these unfounded and potentially illegal activities. Such actions undermine the integrity of the company, its management and its majority stockholder, Kalen Capital Corp.”
In January RenovaCare released results from a retrospective analysis of 44 patients with severe second-degree wide-area burn injuries who were treated with the technology underlying the company’s SkinGun and CellMist system.
RCAR shares were down -3.9% to $5.00 apiece today in early-afternoon trading.