EHang added that it “will consider any necessary and appropriate course of action to protect the interest of the company and all of its shareholders.”
In a 33-page paper, Wolfpack Research called the company “an elaborate stock promotion [scheme], built on largely fabricated revenues based on sham sales contracts.”
Wolfpack accused the Guangzhou-based startup of making up “its story with a collection of lies about its products, manufacturing, revenues, partnerships, and potential regulatory approval of its purported main business.”
An EHang spokesperson told CNN Business the company “strongly believes that Wolfpack lacks a basic understanding of [its] business and operations,” and that “it would refute the Wolfpack allegation in full” shortly. The spokesperson also referred back to the firm’s statement that it was “committed to maintaining the highest standards of corporate governance, as well as transparent and timely disclosure in compliance with the applicable rules and regulations of the United States Securities and Exchange Commission and the Nasdaq stock market.”
The SEC declined to comment on the EHang report.
EHang’s shares closed at $46.30 on Tuesday. Last Friday, they hit an all-time high of $129.80.
CNN – CNN INTERNATIONAL