On Thursday, Worksport Ltd (NASDAQ:WKSP) announced that it has retained Digital BD, Inc to monitor and investigate potentially illegal short-selling activity of its stock.
Concurrently, CEO Steven Rossi has purchased restricted Worksport shares at a 44% premium to the market price.
Rossi said the recent stock trading activity must reflect the business' health or significant growth pathways.
He said that the company sets new volume sales records almost daily while facing suspicious and volatile stock activity that it proposes to investigate thoroughly.
The company reported a 581% growth in the third quarter and expects the 2025 revenue to exceed its market capitalization as of Wednesday. The sales are growing exponentially monthly, and three highly innovative products are set for near-term release, Rossi added.
On Tuesday, Rossi purchased shares at a 44% premium to the closing price, the company said.
Worksport has engaged Digital BD, a provider of Regulation SHO compliance monitoring, short sale trading analytics, and market integrity surveillance to safeguard shareholder value and address unusual trading patterns.
Digital BD will monitor daily short volume data from all U.S. exchanges, encompassing EXEMPT and NON-EXEMPT short sales, and will report its findings to the company.
Digital BD will scrutinize market makers trading Worksport shares daily for adherence to fair market-making requirements.
The Securities and Exchange Commission specifies that bona-fide market-making does not include activities related to speculative selling strategies for investment purposes that are disproportionate to usual market-making patterns.
Rossi expressed commitment to continuing its growth trajectory and protecting the interests of our shareholders. With the assistance of Digital BD, the company proposed to closely monitor trading activities to ensure compliance with all legal requirements.
CEO Rossi said Worksport as significantly undervalued and expects to unlock its true value. He also looks to discover, eliminate, and do everything possible to prevent future illegal short selling or open market manipulation of Worksport's stock.
Worksport's third-quarter revenue reached $3.12 million, up by 581% year-over-year.
Price Action: WKSP stock traded higher by 5.42% to $0.53 premarket at the last check on Thursday.
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