Spectral AI Supports Naked Short Selling Inquiry
June 24 2024 - 8:00AM
Spectral AI, Inc. (Nasdaq: MDAI) (“Spectral AI” or the
“Company”), an artificial intelligence (AI) company
focused on medical diagnostics for faster and more accurate
treatment decisions in wound care, today announced that it has
provided support to Nasdaq and the state securities authorities in
Florida, Louisiana and Texas to bring to their attention potential
market manipulation of the Company’s common stock, primarily in the
form of naked short selling.
This inquiry is being led by Erich Spangenberg,
a member of the Board of Directors and the Company’s largest
shareholder.
Naked short selling is a practice in which
shares are sold without first being borrowed or ensuring that they
can be borrowed. This creates an artificial selling pressure and
allows traders to artificially drive down prices at the expense of
retail investors. The practice is generally illegal pursuant to
Securities and Exchange Commission (“SEC”) Regulation SHO.
“As detailed in the Company’s SEC filing today,
a simple examination of our shareholder lists we obtained from
reliable authorities clearly shows that our public float has been
artificially increased by over 40% as a result of what I believe is
illegal naked shorting,” said Mr. Spangenberg. “We recognize and
appreciate Nasdaq’s commitment to ensuring market transparency and
integrity, and its mission to protect the interests of investors.
It is in this spirit that we look forward to collaborating with all
relevant authorities to address instances of potentially illegal
naked short selling in our stock, strengthen compliance, and
protect our investors.”
About Spectral AI
Spectral AI, Inc. is a Dallas-based predictive
AI company focused on medical diagnostics for faster and more
accurate treatment decisions in wound care, with initial
applications involving patients with burns and diabetic foot
ulcers. The Company is working to revolutionize the management of
wound care by “Seeing the Unknown®” with its DeepView System. The
DeepView System is a predictive device that offers clinicians an
objective and immediate assessment of a wound’s healing potential
prior to treatment or other medical intervention. With
algorithm-driven results and a goal to change the current standard
of care, the DeepView System is expected to provide faster and more
accurate treatment insight towards value care by improving patient
outcomes and reducing healthcare costs. For more information about
the DeepView System, visit www.spectral-ai.com.
Forward Looking
Statements Certain statements made in this release
are “forward looking statements” within the meaning of the “safe
harbor” provisions of the United States Private Securities
Litigation Reform Act of 1995, including statements regarding the
Company’s strategy, plans, objectives, initiatives and financial
outlook. When used in this press release, the words “estimates,”
“projected,” “expects,” “anticipates,” “forecasts,” “plans,”
“intends,” “believes,” “seeks,” “may,” “will,” “should,” “future,”
“propose” and variations of these words or similar expressions (or
the negative versions of such words or expressions) are intended to
identify forward-looking statements.
These forward-looking statements are not
guarantees of future performance, conditions or results, and
involve a number of known and unknown risks, uncertainties,
assumptions and other important factors, many of which are outside
Company’s control, that could cause actual results or outcomes to
differ materially from those discussed in the forward-looking
statements. As such, readers are cautioned not to place undue
reliance on any forward-looking statements.
Investors should carefully consider the
foregoing factors and the other risks and uncertainties described
in the “Risk Factors” sections of the Company’s filings with the
SEC, including the Registration Statement and the other documents
filed by the Company. These filings identify and address other
important risks and uncertainties that could cause actual events
and results to differ materially from those contained in the
forward-looking statements.
Investors: The Equity
Group Devin Sullivan Managing
Director dsullivan@equityny.com
Conor Rodriguez Analyst crodriguez@equityny.com
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