Worksport Ltd. Retains Digital BD to Investigate Short Selling Activity; CEO Reaffirms Confidence with Personal Share Purchase at 44% Premium to Market
Company Formally Addresses Unusual Trading Activity Amid Strong Growth Prospects and Upcoming Product Releases
West Seneca, New York, November 21, 2024 — Worksport Ltd. (NASDAQ: WKSP) (“Worksport” or the “Company”), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, is announcing today that it has retained Digital BD, Inc. to monitor and investigate potentially illegal short selling activity of its shares. Concurrently, CEO Steven Rossi has demonstrated his confidence in the Company’s future by personally purchasing restricted Worksport shares at a 44% premium to the market price.
CEO Commentary
“We strongly believe that recent stock trading activity does not reflect the health of our business or our significant growth pathways. We’re setting new volume sales records almost daily, while facing suspicious and volatile stock activity that we will thoroughly investigate. We’ve had an amazing year, we just reported a remarkable 581% growth in Q3, and we are projecting revenues in 2025 that exceed our entire market capitalization as of yesterday,” said Steven Rossi, CEO of Worksport. “Our sales are growing exponentially month over month, and we have three highly innovative products set for near-term release. On Tuesday, I personally purchased shares at a 44% premium to the closing price, underscoring my unwavering confidence in Worksport’s bright future.”
Engagement of Digital BD, Inc.
To safeguard shareholder value and address unusual trading patterns, Worksport has engaged Digital BD, Inc., a leading provider of Regulation SHO compliance monitoring, short sale trading analytics, and market integrity surveillance. Digital BD will monitor daily short volume data from all U.S. exchanges, encompassing both EXEMPT (market makers) and NON-EXEMPT (other market participants) short sales, and will report its findings to the Company.
Monitoring Compliance with Fair Market Practices: Regulation SHO mandates that bona-fide market-making activities include making purchases and sales in roughly comparable amounts. Digital BD will scrutinize market makers trading WKSP shares daily for adherence to fair market-making requirements. The Securities and Exchange Commission (“SEC”) specifies that bona-fide market-making does not include activities related to speculative selling strategies for investment purposes that are disproportionate to usual market-making patterns.
Data Analysis and Reporting: Digital BD will collaborate with Worksport to obtain broker volume reports, identifying which market makers are transacting in the Company’s shares and the proportion of trading volume they represent. By triangulating broker volume and daily short volume data, Worksport aims to gain a clear understanding of the sources and execution points of short sale activities.
CEO Commitment
“We are committed to continuing our growth trajectory and protecting the interests of our shareholders,” added Rossi. “With the assistance of Digital BD, we will closely monitor trading activities to ensure compliance with all legal requirements. We firmly believe that Worksport is significantly undervalued, and we are dedicated to unlocking its true value. We intend to pursue, with vigor, any and all avenues to discover, eliminate, and do everything in our power to prevent future illegal short selling or open market manipulation of Worksport’s stock.”
Worksport Q3 Earnings Call
Q3 revenue surged to $3.12 million—a 581% year-over-year increase compared to $458,433 in Q3 2023. Worksport held its Q3 2024 earnings call on Wednesday, November 13, 2024. The prepared remarks and presented earnings call deck are available at Worksport’s Investor Relations website.
About DIGITAL BD, Inc.
Digital BD monitors trading in all US stocks in real time and maintains massive databases of short sale time and sales data, short squeeze prices, market-maker price movements, shareholder data, statistical data on earnings, sector correlation, seasonality, hedge fund trading strategies and comparable valuations. The company owns Global Digital Markets, a FINRA member firm.
Contact:
Ralph Dillon
949-280-8591
ralph@digitalbd.iohttps://digitalbd.io
