Worksport Ltd. Retains Digital BD to Investigate Short Selling Activity; CEO Reaffirms Confidence with Personal Share Purchase at 44% Premium to Market
Worksport (NASDAQ: WKSP) has retained Digital BD, Inc. to investigate potential illegal short selling of its shares amid unusual trading activity. CEO Steven Rossi demonstrated confidence by purchasing restricted shares at a 44% premium to market price. The company reported significant growth with Q3 revenue reaching $3.12 million, a 581% year-over-year increase from $458,433. Digital BD will monitor daily short volume data from U.S. exchanges and analyze market maker trading patterns for compliance with Regulation SHO requirements. The company believes current stock activity doesn't reflect its business health and growth prospects.
Worksport (NASDAQ: WKSP) ha incaricato Digital BD, Inc. di indagare su potenziali vendite allo scoperto illegali delle sue azioni a causa di un'attività di trading insolita. Il CEO Steven Rossi ha dimostrato fiducia acquistando azioni riservate a un premio del 44% rispetto al prezzo di mercato. L'azienda ha riportato una crescita significativa con i ricavi del terzo trimestre che hanno raggiunto 3,12 milioni di dollari, un aumento del 581% rispetto all'anno precedente, partendo da 458.433 dollari. Digital BD monitorerà i dati sul volume delle vendite allo scoperto quotidianamente dalle borse americane e analizzerà i modelli di trading dei market maker per garantire la conformità ai requisiti del Regolamento SHO. L'azienda ritiene che l'attuale attività azionaria non rifletta la salute e le prospettive di crescita del suo business.
Worksport (NASDAQ: WKSP) ha contratado a Digital BD, Inc. para investigar posibles ventas en corto ilegales de sus acciones en medio de una actividad de negociación inusual. El CEO Steven Rossi demostró confianza al comprar acciones restringidas a una prima del 44% sobre el precio de mercado. La empresa reportó un crecimiento significativo con los ingresos del tercer trimestre alcanzando 3,12 millones de dólares, un aumento del 581% en comparación con el año anterior, partiendo de 458,433 dólares. Digital BD monitoreará los datos diarios del volumen de ventas en corto de las bolsas estadounidenses y analizará los patrones de negociación de los creadores de mercado para asegurar el cumplimiento de los requisitos de la Regulación SHO. La empresa cree que la actividad actual de las acciones no refleja la salud y las perspectivas de crecimiento de su negocio.
Worksport (NASDAQ: WKSP)는 비정상적인 거래 활동 속에서 주식의 불법적인 공매도 가능성을 조사하기 위해 Digital BD, Inc.를 고용했습니다. CEO 스티븐 로시는 시장 가격보다 44% 높은 프리미엄으로 제한주식을 구매하여 자신감을 보였습니다. 이 회사는 3분기 수익이 312만 달러에 달하며, 이는 전년 대비 581% 증가한 수치라고 보고했습니다. Digital BD는 미국 거래소의 일일 공매도 볼륨 데이터를 모니터링하고 시장 조성자의 거래 패턴이 Regulation SHO 요구 사항을 준수하는지 분석할 것입니다. 회사는 현재의 주식 활동이 비즈니스 건강과 성장 전망을 반영하지 않는다고 믿고 있습니다.
Worksport (NASDAQ: WKSP) a retenu Digital BD, Inc. pour enquêter sur de potentielles ventes à découvert illégales de ses actions, en raison d'une activité de négociation inhabituelle. Le PDG Steven Rossi a démontré sa confiance en achetant des actions restreintes à une prime de 44% par rapport au prix du marché. L'entreprise a signalé une croissance significative avec des revenus au troisième trimestre s'élevant à 3,12 millions de dollars, soit une augmentation de 581% par rapport à l'année précédente, passant de 458 433 dollars. Digital BD surveillera quotidiennement les données sur le volume des ventes à découvert des bourses américaines et analysera les motifs de négociation des négociants en conformité avec les exigences de la réglementation SHO. L'entreprise estime que l'activité actuelle des actions ne reflète pas la santé et les perspectives de croissance de ses affaires.
Worksport (NASDAQ: WKSP) hat Digital BD, Inc. beauftragt, mögliche illegale Leerverkäufe seiner Aktien im Zuge ungewöhnlicher Handelsaktivitäten zu untersuchen. CEO Steven Rossi zeigte Vertrauen, indem er eingeschränkte Aktien zu einem Aufpreis von 44% gegenüber dem Marktpreis kaufte. Das Unternehmen berichtete von einem signifikanten Wachstum, wobei die Einnahmen im dritten Quartal 3,12 Millionen Dollar erreichten, was einem Anstieg von 581% im Jahresvergleich entspricht, ausgehend von 458.433 Dollar. Digital BD wird täglich die Leerverkaufsdaten von US-Börsen überwachen und Handelsmuster der Market Maker auf die Einhaltung der Anforderungen der Regelung SHO analysieren. Das Unternehmen glaubt, dass die aktuelle Aktienaktivität nicht die Geschäftsgesundheit und Wachstumsaussichten widerspiegelt.
- Q3 revenue increased 581% year-over-year to $3.12 million
- CEO purchased shares at 44% premium to market price
- Company projects 2025 revenues to exceed current market capitalization
- Record-breaking sales volumes reported almost daily
- Unusual and volatile stock trading activity potentially affecting share price
- Suspected illegal short selling activity requiring investigation
Insights
The investigation into potential illegal short selling coupled with the CEO's share purchase at a
The engagement of Digital BD for short selling investigation highlights potential market manipulation concerns, but also risks diverting management attention from core business operations. The extreme revenue growth and deeply discounted valuation create an intriguing yet volatile investment scenario, warranting careful consideration of execution risks and market dynamics.
The stark contrast between operational performance and stock behavior warrants attention. The company's aggressive monitoring of short selling activities through Digital BD could reveal important trading patterns, but also suggests underlying market confidence issues despite strong fundamentals. The CEO's share purchase, while intended to signal confidence, occurred through restricted shares rather than open market buying.
The focus on Regulation SHO compliance monitoring indicates a structured approach to addressing market concerns. However, investors should note that investigations into short selling activities often yield actionable results and may not directly address the root causes of stock price weakness.
Company Formally Addresses Unusual Trading Activity Amid Strong Growth Prospects and Upcoming Product Releases
West Seneca, New York--(Newsfile Corp. - November 21, 2024) - Worksport Ltd. (NASDAQ: WKSP) ("Worksport" or the "Company"), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, is announcing today that it has retained Digital BD, Inc. to monitor and investigate potentially illegal short selling activity of its shares. Concurrently, CEO Steven Rossi has demonstrated his confidence in the Company's future by personally purchasing restricted Worksport shares at a
CEO Commentary
"We strongly believe that recent stock trading activity does not reflect the health of our business or our significant growth pathways. We're setting new volume sales records almost daily, while facing suspicious and volatile stock activity that we will thoroughly investigate. We've had an amazing year, we just reported a remarkable
Engagement of Digital BD, Inc.
To safeguard shareholder value and address unusual trading patterns, Worksport has engaged Digital BD, Inc., a leading provider of Regulation SHO compliance monitoring, short sale trading analytics, and market integrity surveillance. Digital BD will monitor daily short volume data from all U.S. exchanges, encompassing both EXEMPT (market makers) and NON-EXEMPT (other market participants) short sales, and will report its findings to the Company.
Monitoring Compliance with Fair Market Practices: Regulation SHO mandates that bona-fide market-making activities include making purchases and sales in roughly comparable amounts. Digital BD will scrutinize market makers trading WKSP shares daily for adherence to fair market-making requirements. The Securities and Exchange Commission ("SEC") specifies that bona-fide market-making does not include activities related to speculative selling strategies for investment purposes that are disproportionate to usual market-making patterns.
Data Analysis and Reporting: Digital BD will collaborate with Worksport to obtain broker volume reports, identifying which market makers are transacting in the Company's shares and the proportion of trading volume they represent. By triangulating broker volume and daily short volume data, Worksport aims to gain a clear understanding of the sources and execution points of short sale activities.
CEO Commitment
"We are committed to continuing our growth trajectory and protecting the interests of our shareholders," added Rossi. "With the assistance of Digital BD, we will closely monitor trading activities to ensure compliance with all legal requirements. We firmly believe that Worksport is significantly undervalued, and we are dedicated to unlocking its true value. We intend to pursue, with vigor, any and all avenues to discover, eliminate, and do everything in our power to prevent future illegal short selling or open market manipulation of Worksport's stock."
Worksport Q3 Earnings Call
Q3 revenue surged to
About DIGITAL BD, Inc.
Digital BD monitors trading in all US stocks in real time and maintains massive databases of short sale time and sales data, short squeeze prices, market-maker price movements, shareholder data, statistical data on earnings, sector correlation, seasonality, hedge fund trading strategies and comparable valuations. The company owns Global Digital Markets, a FINRA member firm.
Contact:
Ralph Dillon
949-280-8591
ralph@digitalbd.io
https://digitalbd.io
About Worksport
Worksport Ltd. (NASDAQ: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksport's hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the EV sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and NP (Non-Parasitic), Hydrogen-based technology. Terravis Energy's website is terravisenergy.com. For more information, please visit investors.worksport.com.
Connect with Worksport
Please follow the Company's social media accounts on X (previously Twitter), Facebook, LinkedIn, YouTube, and Instagram (collectively, the "Accounts"), the links of which are links to external third party websites, as well as sign up for the Company's newsletters at investors.worksport.com. The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company.
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Link to Newsletter
Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, SEC filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media.
The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
For additional information, please contact:
Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W: investors.worksport.com W: www.worksport.com E: investors@worksport.com
Forward-Looking Statements
The information contained herein may contain "forward‐looking statements." Forward‐looking statements reflect the current view about future events. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "future," "intend," "plan," "project," "should," or the negative of these terms and similar expressions, as they relate to us or our management, identify forward‐looking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the SEC, including, without limitation, our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Company's actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/230775
FAQ
What was Worksport's (WKSP) Q3 2024 revenue growth?
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