Short Seller Calls SVRN 'Uninvestable,' Alleges Reverse Splits, Missing Audit, and Dilutive PIPE
SVRN has more than doubled off its 52-week low of $3.12.
Summary
Fugazi Research released a short report calling SVRN 'uninvestable at any price above zero,' alleging the company used four reverse splits since 2022 to maintain its Nasdaq listing, holds NEAR tokens as collateral, and raised only ~$13.7M in cash from a $120M PIPE while the NEAR Foundation took 71.62% on a fully exercised basis. The report also claims Ernst & Young resigned as auditor on the day the strategy debuted, the fiscal 2025 20-F is overdue with no balance sheet since Dec 31, 2025, and Nasdaq's filing deadline is Oct 27, 2026. SVRN shares were up 5.86% at $46.58 at publication, well off session highs. This follows the company's recent acquisition of FastNEAR and its transformation from OceanPal, a shipping company spun off from Diana Shipping. The allegations of auditor departure, missing financials, and a looming delisting deadline are material risks that could trigger significant repositioning.
At the time of this announcement, SVRN was trading at $47.63 on NASDAQ in the Crypto Assets sector, with a market capitalization of approximately $89.3M. The 52-week trading range was $3.12 to $74.74. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Benzinga.