Chinese e-commerce company, GigaCloud Technology (NASDAQ: GCT), experienced a 6.5% rise in stock following a response to a short report from Grizzly Research. The company refuted claims made in the report about related party transactions, stating that there was no merit to these allegations.
GigaCloud emphasized that the report lacked merit and contained defamatory, inaccurate, and misleading information. The company indicated that it was evaluating the claims made in the report and reserved the right to take appropriate measures to defend itself. On Wednesday, GigaCloud shares initially dropped by as much as 20% in response to the report but later recovered to a 5.2% loss for the day.
GigaCloud’s short interest stands at 17.5% of its free float, indicating significant investor interest in the company’s stock performance. The company continues to assess the situation and will take necessary actions to address any concerns raised by the short report.