Nano Nuclear Falls After Short Report Calls Company's Timelines 'Laughable,' Goals 'Out Of Touch With Reality'
Nano Nuclear Energy Inc (NASDAQ:NNE) went public in May and has since accrued a market capitalization of over $500 million. The company’s share price has risen over 200% since its IPO, but dropped on Friday morning after a short report alleged several operational incongruencies.
What Happened: Hunterbrook, a hedge fund that doubles as an investigative news organization, released a report on Nano Nuclear Friday morning.
Hunterbrook alleges that Nano Energy has unattainable and lofty timelines for developing products. The company, which currently has no revenue, plans to create portable nuclear microreactors that could be hitched to a truck for use in space exploration, data centers and AI.
Benzinga contacted Pinterest for comment but did not receive a response prior to publication.
NNE estimates that it will bring microreactors to market between 2030 and 2031, but an expert interviewed by Hunterbrook called the timeline "frankly laughable." Allison Macfarlane, a prior chair of the Nuclear Regulatory Commission, told Hunterbrook that the timeline "won't happen."
Competitors in the industry, who typically allocated more resources, took 15 to 20 years to complete similar projects.
During the first quarter of 2024, NNE spent more on advertising ($434,800) than it did on R&D ($290,000). This is unusual for a company that is in its research stage.
M.V. Ramana, a professor and physicist at the University of British Columbia, told Hunterbrook that NNE would need $10 billion in funding to generate electricity in 15 to 20 years. This is much longer than the 2030-31 timeline and the company does not have $10 billion in funding.
Hunterbrok also alleges that the executives at NNE only work part-time, splitting their time with other companies whose share prices are below $1.
Price Action: Nano Energy traded at $17.68, down 7.43% at the time of publication Friday.
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Image created using artificial intelligence via Midjourney.