GigaCloud Technology (NASDAQ: GCT) responded to a short report from Grizzly Research with a 6.5% increase in its stock price. The Chinese e-commerce company stated that the report lacked merit and contained defamatory, selective, inaccurate, incomplete, and misleading statements. According to GigaCloud, there is no merit to the claims made by Grizzly Research regarding purported related party transactions. The company is currently evaluating the claims in the short-seller report and is prepared to take appropriate measures to defend itself.
On Wednesday, GigaCloud shares had dropped as much as 20% following the release of the short report, but later recovered to a 5.2% loss for the day. Short interest in GigaCloud is currently at 17.5% of free float. Despite this initial drop, GigaCloud remains confident in its business operations and is focused on delivering value to its customers and investors. The company emphasized that the report demonstrated a lack of understanding of their business and the types of buyers who use their marketplace.
GigaCloud Technology offers services on its marketplace to buyers in China and beyond. The company has been operating for several years and has built a reputation for providing reliable and efficient e-commerce solutions. Despite any allegations raised against them by short sellers or other critics, GigaCloud remains committed to maintaining high standards of transparency and integrity in all aspects of its business operations.
