NANO Nuclear Energy Fights Back Against Short Sellers

Rhea-AI Summary

NANO Nuclear Energy Inc. (NASDAQ: NNE) has engaged Quinn Emanuel Urquhart & Sullivan to explore legal action against Hunterbrook Media and Hunterbrook Capital for alleged defamatory and deceptive claims. Alex Spiro, a partner at Quinn Emanuel and Co-Chair of the Investigations, Government Enforcement & White Collar Defense Practice, will represent NANO Nuclear. The company has sent an official letter to Hunterbrook, viewable on their website.

Jay Yu, Founder and Chairman of NANO Nuclear, expressed confidence in Spiro's ability to demonstrate Hunterbrook's alleged malicious intent. James Walker, CEO and Head of Reactor Development, emphasized the company's commitment to transparency and defending against what they perceive as misleading claims. NANO Nuclear aims to protect its interests and shareholders while seeking the truth behind Hunterbrook's motives.

Positive

• Engagement of a high-profile attorney (Alex Spiro) to defend against alleged defamation
• Proactive approach to addressing potential threats to shareholder value

Negative

• Potential negative impact on stock price due to short seller report
• Legal proceedings may incur significant costs and management time

Insights

Legal Expert

NANO Nuclear's engagement of Quinn Emanuel and high-profile attorney Alex Spiro signals a robust legal response to alleged defamation. This move demonstrates the company's commitment to protecting its reputation and shareholder interests. The involvement of Spiro, known for handling high-stakes litigation, suggests NANO Nuclear is taking the matter extremely seriously.

The company's aggressive stance, including the public release of a demand letter, indicates confidence in their position. However, defamation cases can be challenging to prove, especially for public companies. The outcome will likely hinge on whether Hunterbrook's report contains factual inaccuracies or is protected as opinion. This legal battle could have broader implications for the relationship between companies and short-sellers, potentially setting precedents for how critical reports are handled in the future.

Financial Analyst

This legal action by NANO Nuclear against Hunterbrook could have mixed financial implications. On one hand, it demonstrates the company's willingness to defend its market position and could potentially deter future short-selling attacks. This might help stabilize the stock price in the short term.

However, legal battles are often costly and time-consuming, which could divert resources from NANO Nuclear's core business of developing nuclear energy solutions. The outcome of such cases is also uncertain and a prolonged legal process could create ongoing uncertainty for investors.

Importantly, the market will be watching for any substantive rebuttals to Hunterbrook's claims about NANO Nuclear's business model and technology. The company's ability to address these concerns directly, beyond legal action, will be important for long-term investor confidence.

Market Research Analyst

This development highlights the growing tensions between innovative tech companies and short-sellers in the market. NANO Nuclear's response is part of a broader trend where companies are increasingly pushing back against what they perceive as unfair or manipulative short-selling practices.

For investors, this situation underscores the importance of due diligence and critical analysis of both company statements and third-party reports. The controversy may lead to increased scrutiny of NANO Nuclear's business model and progress, potentially benefiting long-term investors by forcing greater transparency.

However, the immediate market reaction might be volatile, as traders respond to the legal battle and any new information that emerges. This case could also have ripple effects across the clean energy sector, influencing how investors approach companies with novel technologies and long development timelines.

Company engages noted attorney Alex Spiro of Quinn Emannuel to explore and assert all legal recourse against Hunterbrook Media LLC and Hunterbrook Capital for defamatory and deceptive claims

New York, N.Y., Aug. 13, 2024 (GLOBE NEWSWIRE) -- NANO Nuclear Energy Inc. (NASDAQ: NNE) (“NANO Nuclear”), a vertically integrated advanced nuclear energy and technology company developing portable clean energy solutions, today announced its engagement of Quinn Emanuel Urquhart & Sullivan (Quinn Emanuel) to explore and assert all available legal recourse against Hunterbrook Media LLC’s disingenuous reporting and protect its interests and shareholders against the deceptive claims made in its report.

In addition, NANO Nuclear has officially sent a letter to Hunterbrook Medial LLC and Hunterbrook Capital, which can be viewed here: https://nanonuclearenergy.com/wp-content/uploads/2024/08/2024.08.13-Hunterbrook-Demand-Letter.pdf

Representing NANO Nuclear in this matter will be Alex Spiro, a partner at Quinn Emanuel, where he serves as Co-Chair of the Investigations, Government Enforcement & White Collar Defense Practice.

“We believe NANO Nuclear has been unlawfully wronged by Hunterbrook, and so we are taking the fight to them. We are pleased to add Alex Spiro and the team at Quinn Emanuel to support us and our shareholders in this effort,” said Jay Yu, Founder and Chairman of NANO Nuclear. “Alex is one of the most experienced and hard-hitting attorneys in the world and his prior cases are a testament to his work ethic and dedication to the truth. We will explore every option and possibility to demonstrate Hunterbrook’s malicious intent and ulterior motives and rebuke them accordingly.”

“There has been a lot of speculation and controversy as to how Hunterbrook conducts their business and we are confident that our efforts will help us get to the truth of their actual motives in publishing their self-serving, misleading and deceptive report,” said James Walker, Chief Executive Officer, and Head of Reactor Development of NANO Nuclear Energy. “We aren’t the only company that has had the misfortune of defending ourselves against their claims, and I am certain we aren’t the only ones with questions. NANO Nuclear has no interest in mincing words or distorting the truth. We have always been fully transparent about the realities of the nuclear energy industry. We also have highly competent people doing their utmost to make our plans a reality, and to see our efforts blemished by the likes of Hunterbrook is not something that we will accept.”

About NANO Nuclear Energy Inc.

NANO Nuclear Energy Inc. (NASDAQ: NNE) is an advanced technology-driven nuclear energy company seeking to become a commercially focused, diversified, and vertically integrated company across four business lines: (i) cutting edge portable microreactor technology, (ii) nuclear fuel fabrication, (iii) nuclear fuel transportation and (iv) nuclear industry consulting services. NANO Nuclear believes it is the first portable nuclear microreactor company to be listed publicly in the U.S.

Led by a world-class nuclear engineering team, NANO Nuclear’s products in technical development are “ZEUS”, a solid core battery reactor, and “ODIN”, a low-pressure coolant reactor, each representing advanced developments in clean energy solutions that are portable, on-demand capable, advanced nuclear microreactors.

Advanced Fuel Transportation Inc. (AFT), a NANO Nuclear subsidiary, is led by former executives from the largest transportation company in the world aiming to build a North American transportation company that will provide commercial quantities of HALEU fuel to small modular reactors, microreactor companies, national laboratories, military, and DOE programs. Through NANO Nuclear, AFT is the exclusive licensee of a patented high-capacity HALEU fuel transportation basket developed by three major U.S. national nuclear laboratories and funded by the Department of Energy. Assuming development and commercialization, AFT is expected to form part of the only vertically integrated nuclear fuel business of its kind in North America.

HALEU Energy Fuel Inc. (HEF), a NANO Nuclear subsidiary, is focusing on the future development of a domestic source for a High-Assay, Low-Enriched Uranium (HALEU) fuel fabrication pipeline for NANO Nuclear’s own microreactors as well as the broader advanced nuclear reactor industry.

For more corporate information please visit: https://NanoNuclearEnergy.com/

For further information, please contact:

Email: IR@NANONuclearEnergy.com
Business Tel: (212) 634-9206
PLEASE FOLLOW OUR SOCIAL MEDIA PAGES HERE:
NANO Nuclear Energy LINKEDIN
NANO Nuclear Energy YOUTUBE
NANO Nuclear Energy TWITTER

Cautionary Note Regarding Forward Looking Statements

This news release and statements of NANO Nuclear’s management in connection with this news release or related events contain or may contain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. In this context, forward-looking statements mean statements related to future events (including events related to Hunterbrook’s report and actions being taken by the Company as a result of such report), which may impact our expected future business and financial performance, and often contain words such as "expects", "anticipates", "intends", "plans", "believes", “potential”, "will", "should", "could", "would" or "may" and other words of similar meaning. These forward-looking statements are based on information available to us as of the date of this news release and represent management's current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve significant known and unknown risks, uncertainties and other factors, which may be beyond our control. For NANO Nuclear, particular risks and uncertainties that could cause our actual future results to differ materially from those expressed in our forward-looking statements include but are not limited to the following: (i) risks related to our U.S. Department of Energy (“DOE”) nuclear fuel manufacturing submission and the development of new or advanced technology, including difficulties with design and testing, cost overruns, development of competitive technology, (ii) our ability to obtain contracts and funding to be able to continue operations, (iii) risks related to uncertainty regarding our ability to technologically develop and commercially deploy a competitive advanced nuclear reactor technology, (iv) risks related to the impact of government regulation and policies including by the DOE and the U.S. Nuclear Regulatory Commission, including those associated with the recently enacted ADVANCE Act, and (v) risks related to uncertainties associated with the business of a start-up business operating a highly regulated industry. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this news release. These factors may not constitute all factors that could cause actual results to differ from those discussed in any forward-looking statement, and the NANO Nuclear therefore encourages investors to review other factors that may affect future results in its filings with the SEC, which are available for review at www.sec.gov and at https://ir.nanonuclearenergy.com/financial-information/sec-filings. Accordingly, forward-looking statements should not be relied upon as a predictor of actual results. We do not undertake to update our forward-looking statements to reflect events or circumstances that may arise after the date of this news release, except as required by law.

FAQ

What legal action is NANO Nuclear Energy (NNE) taking against Hunterbrook?

NANO Nuclear Energy (NNE) has engaged Quinn Emanuel Urquhart & Sullivan to explore and assert all available legal recourse against Hunterbrook Media and Hunterbrook Capital for allegedly defamatory and deceptive claims made in their report.

Who is representing NANO Nuclear Energy (NNE) in the legal action against Hunterbrook?

Alex Spiro, a partner at Quinn Emanuel and Co-Chair of the Investigations, Government Enforcement & White Collar Defense Practice, is representing NANO Nuclear Energy (NNE) in their legal action against Hunterbrook.

What has NANO Nuclear Energy (NNE) done in response to Hunterbrook's report?

NANO Nuclear Energy (NNE) has sent an official letter to Hunterbrook Media and Hunterbrook Capital, engaged legal counsel, and is exploring all legal options to defend against the alleged defamatory claims and protect shareholder interests.

How does NANO Nuclear Energy (NNE) plan to address Hunterbrook's claims?

NANO Nuclear Energy (NNE) plans to explore every option to demonstrate Hunterbrook's alleged malicious intent and ulterior motives, and to rebuke their claims through legal means with the help of Quinn Emanuel Urquhart & Sullivan.