Shares of Bright Green Corp. (NASDAQ: BGXX) spiked in pre-market trading on Monday even as the cannabis company announced on Friday that it was going to investigate the illegal short selling in the stock.
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In the past month alone, the stock has soared by more than 170% after the company announced a massive capital raise of $500 million through the EB-5 capital program.
However, BGXX announced a review of its stock trading activity on Friday and stated, “With our recent EB-5 announcement a lot of activity ensued and we can see an underperformance of our shares compared to the market, which is a clear indication of the illegal short selling activities that have taken place and these activities have had a significant effect on the value of our stock.”
Naked short selling, though illegal continues to exist in the stock market due to legal loopholes and refers to the practice of short-selling a stock that may not exist affirmatively.
In the past three months, BGXX stock has jumped by more than 130.9%.
