Short-seller Muddy Waters takes aim at Nano-X Imaging after Citron

(Reuters) – U.S.-listed shares of Israel’s Nano-X Imaging Ltd fell nearly 20% on Tuesday after short-seller Muddy Waters joined Citron Research in raising doubts over the company’s diagnostic product.

Muddy Waters likened the company to Nikola Corp , whose founder Trevor Milton stepped down on Monday amid scathing reports from short-sellers.

“We conclude that NNOX (Nano-X) has no real product to sell other than its stock,” Muddy Waters said in a report on Tuesday.

Nano-X Imaging did not immediately respond to a Reuters request for comment.

Shares in Nano-X Imaging, which had been on an upward run since their market debut in August, took a hit last week after Citron said the stock was headed towards $0 and called the company a “stock promotion”.

Citron’s comments focused on the company’s Nanox System, which comprises a digital X-ray device and cloud-based software that will be designed to provide an end-to-end medical imaging service.

The company had said Citron’s allegations were without merit and it would provide information on the report “as appropriate”.

Its shares were down 19.2% to $23.3 before the opening bell on Tuesday.

(Reporting by Manas Mishra in Bengaluru; Editing by Maju Samuel)