AXT on ‘brink of collapse,’ J Capital claims in short report

J Capital announced a short position in AXT Inc. in a report published on its website. The firm says AXT “may be on the brink of collapse” with Chinese headlines declaring its local initial public offering has failed. “Its revenue is plummeting, and creditors are at the door,” J Capital contends. The firm says its “uncovered a deluge of reasons” why Chinese regulators potentially blocked the IPO AXT’s subsidiary, Tongmei, “including falsifying data, tax evasion, improper storage of hazardous chemicals, suspicious related-party transactions, IP litigation, and defaulting on wages to employees.” Shares of AXT are down 17% to $4.12 in premarket trading.