Straight Path Communications (STRP) Lower Following Cautious Bloomberg Article

August 22, 2016 9:28 AM EDT

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Straight Path Communications (NYSE: STRP) is down 10% in pre-open trade Monday following a cautious Bloomberg article, which highlighted that the company may lose its FCC license, which is up for renewal, due to missing rooftop transmitters.

After a critic of the company questioned claims that Straight Path was providing service over the designated frequencies with transmitters at hotels around the country, the company said it investigated and found no evidence that the transmitters were still in place.

"The market should be aware of the risks," Straight Path ceo Davidi Jonas told Bloomberg. "Aside from this issue -- this obviously is a major issue we’re addressing -- we think the company is very well positioned."

Link to Bloomberg article.

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