Blue Sky shares are tanking again

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  • Blue Sky shares dropped by a third as the war of words with a short seller continue.
  • Short Seller Glaugus Research says Blue Sky’s response to its note is “woefully inadequate”.
  • Blue Sky says a second opinion from Glaucus raises no new allegations.

Shares in fund manager Blue Sky fell hard again following more public sparring with short seller Glaucus Research.

At the close, they were down 33.6% to $5.62.

The shares have halved since Wednesday last week when Glaucus announced it was shorting Blue Sky, alleging the funds manager wrongly calculated the value of assets under management and charged exorbitant fees.

Blue Sky rejected the allegations and referred the Glaucus note to the corporate regulator ASIC, saying this could be a case of market manipulation.

Blue Sky says the Glaucus opinion piece is materially misleading and flawed.

However, today Glaucus released a second note saying Blue Sky’s response to its initial research was “woefully inadequate“.

Glaucus says: “Rather than address our report on its merits, Blue Sky has doubled down on obfuscating simple details about its business. Instead of transparency, Blue Sky has fallen back on threats and recriminations.”

In a statement to the ASX, Blue Sky says the second opinion from Glaucus raises no new allegations.

Blue Sky says the second note also doesn’t identify any information which previously has not been disclosed and it doesn’t identify any errors in information from Blue Sky.

“The Board confirms our previous standing invitation to the Short Seller to meet with us to discuss and clarify any further issues which they may have,” says Blue Sky.

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