Harrow Health dips 4% after Bonitas publishes short report

Shares of Harrow Health are down 73c, or 4%, to $16.23 in morning trading after short-selling research firm Bonitas Research published a critical report on its website. Harrow Health, which primarily sells ophthalmic prescription pharmaceuticals using the ImprimisRx brand in the United States, tried to transition from a bespoke compound pharmacist to become a pharmaceutical development company through a variety of initiatives and while "investors have bought into the story of change, our findings suggest that at best, Harrow is an unprofitable stock promotion neglecting risk disclosures and quality control standards at its compounding pharmaceutical operations," the firm stated. Bonitas added: "Harrow burns cash from operations and relies on external financing for survival. We think Harrow did not disclose to investors the existence of a DOJ investigation because it would have compromised Harrow’s ability to raise capital. With significant liabilities managed by bad actors willing to enrich themselves at the expense of minority Harrow shareholders, we are short Harrow and think its stock is going lower." Reference Link