RenovaCare Fights Back Against Alleged ‘Predatory’ Trading
A company developing what has been dubbed a “skin gun” for burn victims claims it is the victim of predatory trading practices. RenovaCare said Monday that it has video evidence of “extensive and, in the company’s opinion, potentially legal, on-going predatory trading practices,” by several firms that are members of the Financial Industry Regulatory Authority (FINRA).
The company said it has informed investigatory agents of FINRA about these activities, and that the firms may be covertly collaborating with The Street Sweeper, a short-seller syndicate targeting RenovaCare. The Pittsburgh-based company also said it will file a formal complaint about these trading practices with both FINRA and the SEC and will explore potential private legal remedies.
RenovaCare said multiple video recordings show that the firms have exacerbated the adverse impact of what the company termed “short and distort” activities. The company reported last month that a short-seller syndicate had launched a smear campaign of disseminating “grossly misleading, inaccurate, and distorted facts and misinformation, including false allegations of insider selling.”
According to RenovaCare, 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. Kalen Capital Corp. has invested an additional $5.7 million since 2008, the company noted. Kalen Capital Corp. is a family office managing the assets of Harmel Rayat and family.
“These short sellers spread false rumors and innuendos of impropriety with business affiliates, partners, and collaborators to disparage the good reputation of RenovaCare and thereby enhancing their profit at the expense of company stockholders,” according to a RenovaCare press release.
The release goes on to argue that, left unaddressed, such activities could impede its efforts to commercialize its technology, which it says has treated 70 severe burn patients to date.
The Street Sweeper published a rather harsh review of RenovaCare on Seeking Alpha on Feb. 12. noting, that RenovaCare has only one full-time employee who isn’t even the CEO, that the “sole experimental product was acquired on the cheap,” and that the company’s majority stock owner has had previous run-ins with the SEC. Seeking Alpha also published a similar review Feb. 22 written by a new contributor to the site, Anna Vaysfeld, whose LinkedIn profile can be viewed here. She too calls Rayat’s integrity into question, as he has been charged at least twice by the SEC for improper activities in connection with stock promotion.