Shares of microcap energy infrastructure software and technology provider CleanSpark (CLSK) dropped nearly 10% Thursday after the company fired back at a short seller report from Culper Research.
The Wood Cross, Utah-based company said the purpose of the report was to cover or profit from the publisher's short position. The firm also noted that the authors behind the report were left anonymous.
The company retained the law firm of Wilk Auslander to conduct an investigation into "the sources of these misrepresentations, including the identity of those veiled behind the entity calling itself Culper Research."
As part of its report, Culper said that project deployments to install microgrids for 252 homes in Valle Divino, Mexico were not fulfilled, and tweeted a photo of the area where the company was supposed to build the microgrids.
Culper also said that CleanSpark once claimed to have "designed a best in class microgrid solution" for cannabis operator Green Dragon. But Culper said it contacted Green Dragon, who told them that "no business was ever done" between the two and that CleanSpark fabricated that account.
"CleanSpark takes seriously any accusations of impropriety, stands behind its prior statements and disclosures, and will not tolerate unfounded and reckless claims against the Company," the company said in a press release Thursday. "We also invite anyone who has any information regarding the persons or entities behind Culper Research to contact the Company."
CleanSpark shares were down 10.8% to $25.27 in afternoon trading. The stock is down nearly 30% over the past five sessions.