Good to see that the report has been removed from J cap’s...

Good to see that the report has been removed from J cap’s website. A question remains: is ASIC also acting on this?By ASIC’s own definition, it meets all the requirements of ‘Activist short selling’ or ‘Short and Distort’ which is the opposite of ‘Pump and Dump’. From ASIC:

“Activist short selling involves a person taking a shortposition ... and then publicly disseminating information (e.g. one or morereports) directly or through an agent to negatively impact the price of theproduct ('short report'). A short report may, for example, criticise an entity's finances, management, public disclosures or future prospects. A short report does not necessarily have to be in the form of a formal report. It could be, for example, a post on a social media platform, blog or online forum. The activist short seller expects the short report to cause the price of the financial product to fall, enabling them to realise a profit. ”

“...activist short selling campaigns tend to target companieswith lower market capitalisation. There is also a tendency to follow cyclicaltrends (e.g. to target entities and industries that are high growth/high riskor may be overvalued or have experienced rapid security price growth). They mayalso target sectors that are technically complex and/or easily misunderstood(e.g. medical research, technology and mining).”

“...activist short sellers can also unduly distort the priceof a target entity's securities. For example, by making false or misleadingstatements, providing an incomplete view of the facts, drawing conclusionsunsupported by adequate evidence or by using overly emotive or inflammatorylanguage to distort the facts ('short and distort' campaigns).”

“This activity can also harm the reputation of the targetentity. In addition to creating doubt in the minds of existing shareholders, itmay discourage future investors, negatively influence future valuations and theprice of the target entity's securities, and impact the target entity's abilityto raise capital.”

“We have no tolerance for misconduct that undermines marketintegrity or harms listed entities or investors. We will pursue action forbreaches of Australian law where there is sufficient evidence to support a caseand it is in the public interest to do so.”