Alarum to Investigate Potential Illegal Short Selling
Alarum Technologies Ltd. (NASDAQ: ALAR) announced concerns regarding potential trading abuses impacting its stock price. The Board of Directors approved an investigation into these issues, including the recruitment of specialists to monitor trading activity. CEO Shachar Daniel highlighted the potential harm of illegal short-selling on market integrity and pledged to protect shareholder interests. The Company aims to collaborate with others facing similar challenges to restore fair market conditions and ensure that its stock reflects its true performance.
- Company is taking proactive steps to address trading abuses.
- Plans to collaborate with other affected companies may enhance collective action against market manipulation.
- Concerns about illegal short-selling potentially depressing share price.
- Time and resources allocated to address trading issues may divert focus from core business operations.
Tel Aviv, Israel, Feb. 22, 2023 (GLOBE NEWSWIRE) -- Alarum Technologies Ltd. (www.alarum.io) (Nasdaq, TASE: ALAR) (“Alarum” or the “Company”), a global provider of enterprise and consumer internet access solutions, today announced that it believes that its American Depository Shares (ALAR) have been a victim of trading abuses, which may be artificially depressing the Company’s share price. Therefore, the Company’s Board of Directors has approved the allocation of resources in order to evaluate all options to address this issue and prepare a concrete action plan, including the retention of specialists to investigate trading in the Company’s shares in an effort to allow the Company to better monitor trading activity and protect the interests of the Company’s shareholders, as well as to seek out partnerships with companies experiencing similar market situations and that are taking legal action to combat illegal short selling and restore fair market conditions.
“Illegal short-selling, otherwise known as “naked shorting,” is the practice of selling short shares that have not been affirmatively determined to exist. Ordinarily, traders must first borrow a stock or determine that it can be borrowed before they sell it short. Unfulfilled sales lead to market-manipulation as it artificially depresses the price of the securities of the company," commented Mr. Shachar Daniel, Chief Executive Officer of Alarum.
"We feel we owe it to the company and to our shareholders to investigate this issue and establish appropriate action to make sure there is greater integrity in the capital markets. We have seen several companies commenting on this problem, and we would welcome the opportunity to collaborate with other companies that have been affected by these actions. We believe that our shares should be free from manipulation in order to accurately and fairly respond to the Company’s true and actual performance and we are committed to protecting the interests of our shareholders and ensuring that the value of their investment is not artificially depressed.” Mr. Daniel concluded.
About Alarum Technologies Ltd.
Alarum Technologies Ltd. (Nasdaq, TASE: ALAR) is a global provider of internet access solutions. The Company operates in two distinct segments: solutions for enterprises and solutions for consumers.
The solutions by NetNut, our Enterprise Internet Access arm, are based on our world’s fastest and most advanced and secured hybrid proxy network, enabling our customers to collect data anonymously at any scale from any public sources over the web. Our network comprises both exit points based on our proprietary reflection technology and hundreds of servers located at our ISP partners around the world. The infrastructure is optimally designed to guarantee the privacy, quality, stability, and the speed of the service.
Our Consumer Internet Access arm offers privacy and cybersecurity solutions to end users. These solutions are designed to allow users to take charge of their online privacy with a powerful, secured and encrypted connection. The solutions are designed for basic and advanced use cases, ensuring complete protection of personal and digital information.
The Company's previously developed cybersecurity solutions for enterprises are offered by an information security provider, as a solution or cloud service.
For more information about Alarum and its privacy and cybersecurity solutions for enterprises and consumers, please visit www.alarum.io.
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Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other Federal securities laws and the Israeli securities law. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates” and similar expressions or variations of such words are intended to identify forward-looking statements. For example, Alarum is using forward-looking statements in this press release when it discusses the possibility that trading abuses may be artificially depressing the Company’s share price and its plans and intentions to address this issue. Because such statements deal with future events and are based on Alarum’s current expectations, they are subject to various risks and uncertainties and actual results, performance or achievements of Alarum could differ materially from those described in or implied by the statements in this press release. The forward-looking statements contained or implied in this press release are subject to other risks and uncertainties, including those discussed under the heading “Risk Factors” in Alarum’s annual report on Form 20-F filed with the Securities and Exchange Commission (“SEC”) on March 29, 2022, and in any subsequent filings with the SEC. Except as otherwise required by law, Alarum undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
INVESTOR RELATIONS CONTACTS:
Michal Efraty
+972-(0)52-3044404
investors@alarum.io
FAQ
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