Capybara Research has issued a short report on Safety Shot, citing doubts about the company’s management and product legitimacy.
In its report, Capybara disputed Safety Shot’s claims that their drink can lower a person’s blood alcohol level by up to 50% in 30 minutes, a claim that is “refuted by the most basic facts of how the human body processes alcohol,” it said.
“We believe Safety Shot markets itself as a nutraceutical beverage to avoid FDA regulation,” wrote Capybara. “Given the product’s fraudulent claims, we expect regulators to intervene.”
The activist argued that a recent surge in Safety Shot’s stock price is the result of aggressive stock promotion and has no relation to the company’s financial performance.
Safety Shot was quick to reject the allegations, describing the short report as “malicious defamatory, inaccurate articles about Safety Shot and its management in a willful attempt to scare SHOT investors out of their positions in hopes of getting them to sell their shares so they can then buy at a lower cost to cover their disclosed short position.”
The company implied that it would take legal action against the short seller.
Safety Shot’s stock was down almost 30% in mid day trade Wednesday at $3.41 per share.