- Biolase (BIOL +1.2%) CEO Federico Pignatelli responds to two negative articles (here and here) from last week by SA contributor Richard Pearson - who has shorted the stock - accusing the latter of spreading "inaccurate and misleading information."
- This includes Pearson's claim that the dental-laser company's cash burn has historically been $3M per quarter and that it has been on the brink of insolvency.
- Biolase has forecast cash burn of $3.5-4.5M for this year vs $1.7M in 2012.
- "Pearson's clear intent must be to personally profit by spreading deceitful information," says Pignatelli.
- The CEO also criticizes Pearson for his comments that Biolase's "'dividend' is not a dividend." Pearson probably knows that "one of the purposes of issuing a stock dividend" is to stop "speculators from illegal naked shorting." Pignatelli believes "that a large amount of naked shorting is currently in existence in our stock."
Biolase responds to SA author's insolvency accusations
Aug 19 2013, 10:22 ET