Multiple sources close to Verses AI Inc have informed us that the company is currently under attack by Anson Funds, with the stock losing some 55% of its value in the past six months as a result.
Verses AI is an early-stage cognitive computing company building next-generation intelligent systems.
The timing of Anson’s attack was suspicious, with strange trading activity beginning in the fall of 2022.
We have reason to believe a large naked short position has been built up on Verses AI multiple times the size of the 2 million share declared short position (stock with a borrow).
In June 2023, the stock had a big run on the back of a buoyant AI market and NVDA ripping, followed by heavy short action on the way down. In mid-June, Verses was offered a bought-deal via an independent Vancouver-based brokerage firm for $8 million–but the lead turned out to be Anson Funds, offered via a banker, but ultimately from a managing director at the firm. The managing director has long been known for dealing with seedy hedge funds, particularly Anson.
Instead, Verses printed its own $23.5-million financing with an unlimited presidents list and control over the book. When Anson showed up in the book, Verses apparently kicked them out.
Then, in January this year, Verses was offered another bought-deal via a group in Toronto. Once again, the client turned out to be Anson Funds. Verses rejected the deal.
In April this year, Verses was about to do an overnight marketed offering on the 9th at market close. (The stock got knocked down 10 cents on higher-than-normal trading volume the day before, which was front-running the short report. The day of the eclipse). The very next day, Night Market Research published a short-and-distort report, tanking the stock to $1 on the 9th (down from $1.50). It is known on the street that Night Market Research work for Anson (like Nate Anderson and Andrew Left used to).
The regulators and CIRO should be actively reviewing the trading on the 8th, in our view.
According to one source, Verses reached out to the exchange to ask for data on the trading the day before and the day of the short report. As of the time of writing, they have not received anything. Of course, Anson Funds has collaborators at the exchange (don’t they, Jay?)
The sources told us that Verses AI had received a suspicious email on June 8th from a Protonmail account, asking pointed questions about the company. Verses did not respond, but the questions reflected the contents of the short-and-distort report published the following day, and the point was to be able to say that they contacted the company and received no response.
Weeks before this there was a discussion with the aforementioned independent brokerage firm about a potential financing and Verses was put on the grey list by this firm and the previously mentioned managing director leaked to his institutional desk that a deal was coming. This is a major breach of protocol.
Post-hit piece, phony LinkedIn accounts then started pinging the company chair and employees at Simwell, a partner in Verses’ pharmacy chain project, sending them the report and asking: “How can you do business with these frauds?”
Under normal circumstances, buyers and sellers make a market. However, in cases similar to this, we are looking at direct interference and manipulation with the intent to destroy the company, its investors and the livelihoods of over 100 employees. The intention is purposeful and insidious and bent on destruction, which is exactly Anson’s MO. It’s the classic Moez Kassam School of Business (and Fraud).
Verses then pulled the deal to do a non-brokered PP for $10 million over several weeks in three tranches.
Anson also reported Verses to the BCSC, alleging fake contracts with JPL/NASA and Volvo Cars. Our research suggests that Verses has a legitimate contract for these companies, all of which have reportedly been sent to the BCSC.
This is a typical page from the Anson Funds playbook. Preying on companies to turn a profit and harm retail and institutional investors, not to mention attempting to kill legitimate enterprises.
More to follow as our sources provide additional documentation and more witnesses reach our tip line, which has been lighting up in recent weeks. We ask those of you who have written in to be patient as we have a lot of information to go through.
We are working on two more shorter reports on other attacked companies, which will be coming out soon.
We as a collective are still more powerful than the MMs and hedge funds. We need to do more to fight the corruption.
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