EquipmentShare.com (EQPT) shares fell 9.4% on Thursday after Blue Orca Capital alleged in its report that undisclosed promises tied to the company's equipment investment program could create billions of dollars in hidden liabilities, potentially weakening the company's balance sheet and bonds.
The short seller claimed that companies closely connected to EquipmentShare's founders attract investors by making "murky" promises that EquipmentShare will cover initial losses and potentially repurchase the equipment at the end of the investment term.
EquipmentShare.com didn't immediately reply to' request for comment.
Price: $16.39, Change: $-1.70, Percent Change: -9.37%