(Reuters) – U.S.-listed shares of Israel’s Nano-X Imaging Ltd NNOX.O 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 NKLA.O, 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