Ekso Bionics (NASDAQ: EKSO)
Ekso Bionics is having an incredibly bad day in the market, trending downward since just after the open. Here’s the What, Why, and What’s Next when it comes to EKSO…
What’s Going On With EKSO
In what seems to be a lighter version of what started with BANC yesterday, Ekso Bionics is having an incredibly rough start to the market today. At the moment 1141, the stock is trading at $5.55 per share after a loss of $0.27 per share (4.72%) thus far today. Unfortunately, it looks like the declines are likely to last for some time.
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Why Is This Happening?
As mentioned above, the declines that we’re seeing from EKSO are the result of claims that the company is tied to a known fraudster. In an article on The Street Sweeper, Sonya Colberg pointed out the company’s involvement with Adam S. Gottbetter. In fact, they pointed out that GottBetter became a “key figure behind Ekso’s private placement offering in January and February 2014.” Unfortunately for EKSO, Mr. GottBetter isn’t exactly a stand-up guy.
In fact, after about seven months of the program, Gottbetter was sentenced to one and a half years. His crime… stock fraud! In fact, the SEC doesn’t have much by way of positive words to say about Gottbetter:
“The SEC alleges that Adam S. Gottbetter orchestrated promotional campaigns that touted the prospects of microcap companies and enticed investors to buy their stock at inflated prices so he and his cohorts could sell shares they controlled and reap massive profits.”
“During one meeting in New York City, Gottbetter complained about the difficulties of stock manipulation but conceded that robbing a bank was the only other way to make so much money so quickly.”
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Really, there is no telling what’s going to come of this for EKSO. At the moment, investors are concerned, and short-run declines are to be expected. We will be watching the wire closely for any news with regard to a company response or anything else on the story and bring it to you as it breaks!
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[Image Courtesy of Wikipedia]