Aduro Clean Technologies Inc (NASDAQ:ADUR) shares are trading lower Thursday morning after The Bear Cave released a report characterizing the company’s recent rally as “premature” and driven by aggressive stock promotion.
- Aduro Clean Technologies stock is feeling bearish pressure. Why is ADUR stock dropping?
Paid Promotion and Influencer Campaigns
The short seller highlights that while the stock has surged roughly 200% since its November NASDAQ uplisting, the company generated only ~$200,000 in revenue against $11 million in losses over the last year.
Benzinga has reached out to Aduro Clean Technologies for comment on the report’s allegations.
The Bear Cave report alleges that Aduro’s retail popularity is fueled by extensive paid marketing campaigns rather than fundamental business progress.
The company disclosed active engagements with multiple investor relations firms, including Outside The Box Capital and Kanan Corbin Schupak & Aronow, to manage digital marketing and social media awareness.
The report also identifies sponsored content from financial influencers and newsletters, such as Bullseye Trades, which described Aduro as a top alert.
Partnership and SEC Disclosures
The report further scrutinizes Aduro’s commercial relationships. Citing SEC correspondence, The Bear Cave notes that regulators questioned the company’s reliance on “letters of intent” rather than definitive partnership agreements.
Although CEO Ofer Vicus alluded to a “commercial agreement” with Shell in a 2023 interview, Aduro clarified to the SEC that its participation in the Shell GameChanger program was “purely for technology evaluation” with no ongoing commitments.
Benzinga Edge Rankings
Benzinga Edge stock rankings give you four critical scores to help you identify the strongest and weakest stocks to buy and sell.
According to the Benzinga Edge rankings, Aduro Clean Technologies maintains a very strong Momentum score of 94.80, indicating significant relative price strength despite Thursday’s headwinds.
Aduro Shares Drop Monday
ADUR Price Action: Aduro Clean Technologies shares were down 4.11% at $13.99 at the time of publication on Thursday, according to Benzinga Pro data.
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