Enochian Biosciences Inc (NASDAQ:ENOB) shares are trading lower Wednesday after Hindenburg Research issued a bearish report on the company.
Last week, federal prosecutors announced the arrest of two men being charged in a "murder-for-hire" conspiracy, which resulted in the death of Vermont resident Gregory Davis. Enochian co-founder Serhat Gumrukcu was one of two men charged with conspiring to use interstate commerce facilities in the commission of murder-for-hire.
Hindenburg noted that Gumrukcu is not only the co-founder of Enochian, but also a key scientist and inventor, as well as the company's largest shareholder. The company reportedly claimed that Gumrukcu doesn't have a formal role in the company and that the incident was completely unrelated, however, Hindenburg points out that Enochian’s own disclosures indicate that the company and its pipeline are "completely dependent" on Gumrukcu.
"Unbeknownst to investors (but known to Enochian’s senior leadership) Gumrukcu’s latest arrest for a murder conspiracy is simply the most recent in a string of alleged crimes by Gumrukcu," Hindenburg said.
The research firm went on to highlight several other accusations against the Enochian co-founder.
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ENOB Price Action: Enochian shares have traded between $2.67 and $13.77 over a 52-week period.
The stock was down 28.5% at $3.76 at press time, according to data from Benzinga Pro.
Photo: Oleg Gamulinskiy from Pixabay.
