Bonitas Values Hosa At Zero
Short seller Bonitas Research - founded by Matthew Wiechert, founder of Glaucus Research - announced that it held a short position in Hosa going into the stock's recent plunge in June. The firm said:
"We were short Hosa into this event. We believe that Hosa management has constructed a fraudulent scheme to bilk unsuspecting creditors and minority shareholders out of their investments using a web of undisclosed related party distributors and suppliers to fabricate reported revenues and profitability."
The firm values Hosa stock at zero, claiming the company is "Laden with debt and little cash with a business significantly smaller than reported in its filings."