PolarityTE, Inc. (NASDAQ: COOL) fell Monday after the company reported the termination of Chief Investment Officer John Stetson following a recent SEC complaint against him.
Following the SEC's announcement on Friday, "SEC Charges Microcap Fraudsters for Roles in Lucrative Market Manipulation Schemes," the Company immediately terminated Stetson.
None of the other defendants listed in the complaint filed by the SEC has any recent management, employment, or consulting relationship with the Company, nor will there be any such relationship in the future.
As evidenced by the actions taken today, the Company, management, and Board of Directors do not tolerate the behavior outlined in the complaint.
PolarityTE Inc. is not one of the three companies referenced in the SEC complaint, which are identified in paragraphs 54, 55 and 56, available in the formal complaint, and PolarityTE has no involvement with or knowledge of the activities mentioned therein.
PolarityTE is a commercial-stage biotechnology and regenerative biomaterials company focused on transforming the lives of patients by discovering, designing and developing a range of regenerative tissue products and biomaterials for the fields of medicine, biomedical engineering and material sciences.
The PolarityTE platform technology begins with a small piece of the patient's own, or autologous, healthy tissue, rather than artificially manipulated individual cells.
From this small piece of healthy autologous tissue, the company creates an easily deployable, dynamic and self-propagating product designed to enhance and stimulate the patient's own cells to regenerate the target tissues
Shares withered 87 cents, or 4.2%, to $19.67 Monday.
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