Fuel-cell truck maker Hyzon Motors Inc on Tuesday rejected a report by Blue Orca, saying it was inaccurate and misleading, and was intended to generate profits for the short seller.
Hyzon shares, which have slumped 35% since the publication of the report last week, rose as much as 16%.
Blue Orca https://static1.squarespace.com/static/5a81b554be42d6b09e19fc09/t/61530030593dd86e7025333e/1632829490443/Blue+Orca+Short+Hyzon+Motors+Inc+(NASDAQ+HYZN).pdf said in the report that it had taken a short position in the stock, alleging that Hyzon’s largest customer Shanghai HongYun was a “fake company” that was formed just days before an announcement of a deal to supply up to 500 fuel-cell vehicles.
“In our opinion, such evidence suggests that Hyzon announced a major order with a fake looking Chinese customer just to pump its stock price,” the short seller had said.
In response to Blue Orca’s claims, Hyzon Chief Executive Craig Knight said, “Hyzon has no record of this short seller ever meeting with Hyzon management, requesting any information or clarification… or seeking to verify any of its claims.”
Knight also assured investors the company had $500 million of cash and cash-equivalents on its balance sheet to execute its business.
Blue Orca did not immediately respond to a Reuters request for comment.
Hyzon, which is in the early stages of designing a purpose-built hydrogen-powered truck called SuperH2Truck, went public in July through a merger with blank check firm Decarbonization Plus Acquisition Corp. (Reporting by Eva Mathews in Bengaluru; Editing by Anil D’ Silva)