AgEagle Aerial Systems (UAVS) Responds to False Claims from Short Seller Seeking to Manipulate Stock

February 19, 2021 8:06 AM EST

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AgEagle Aerial Systems Inc. (NYSE American: UAVS) (“AgEagle” or the “Company”), an industry leading drone solutions provider, today announced a response to the recent short-selling research report released by Bonitas Research yesterday morning, which contained false, inaccurate and misleading information regarding the Company.

J. Michael Drozd, CEO of AgEagle, stated, “The report by Bonitas Research contains multiple baseless claims, which we refute in the strongest possible terms. It is a clear attempt to manipulate and profit from the Company’s resulting stock price decline. The report did not even reflect the proper stock exchange our common shares trade on, much less substantiate any of its allegations.”

The following is AgEagle’s response to certain claims made in the Bonitas Research report:

  • The Company has stated on numerous occasions that it is contractually obligated not to disclose the name of its major ecommerce client due to adherence to the terms and conditions of a non-disclosure agreement between the client and AgEagle. Further, the Company does not and will not comment on rumors or speculation about its clients as a matter of policy.
  • Insider ownership as a percentage of the shares issued and outstanding has declined due in large measure to the increase in shares issued in association with the Company’s capital raising activities over the past year. In addition, the Company’s founder and former Chairman has formally resigned from AgEagle in accordance with the management succession plan announced in early 2020. As such, Mr. Chilcott is no longer deemed an affiliate.

Drozd continued, “Attacks from shorting outfits, such as Bonitas Research, would ordinarily not be dignified with a response. However, its attempt at impugning AgEagle’s integrity and ethics require a clear and thorough refutation of their disparaging misrepresentations. We intend to review all of our options on how to appropriately respond, up to and including litigation and referral of the entire matter to the proper regulatory authorities.”

Note: In 2019 and 2020, several media outlets reported on one instance where legal action was taken against Bonitas Research for making false and materially misleading statements to the public. According to an article published in The Sydney Morning Herald, in a scathing court judgement against Texas-based Bonitas Research by the New South Wales Supreme Court, Justice David Hammerschlag stated, “I am satisfied that they knew or ought reasonably to have known that the statements and information were false in material particulars or were materially misleading. They did not care that they were false.”

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