Full Press Release Details
AI Supports Naked Short Selling Inquiry
TX - June 24, 2024 - Spectral AI, Inc. (Nasdaq: MDAI) ("Spectral AI" or the "Company"), an artificial intelligence
(AI) company focused on medical diagnostics for faster and more accurate treatment decisions in wound care, today announced that it has
provided support to Nasdaq and the state securities authorities in Florida, Louisiana and Texas to bring to their attention potential
market manipulation of the Company's common stock, primarily in the form of naked short selling.
inquiry is being led by Erich Spangenberg, a member of the Board of Directors and the Company's largest shareholder.
short selling is a practice in which shares are sold without first being borrowed or ensuring that they can be borrowed. This creates
an artificial selling pressure and allows traders to artificially drive down prices at the expense of retail investors. The practice
is generally illegal pursuant to Securities and Exchange
Commission ("SEC") Regulation SHO.
detailed in the Company's SEC filing today, a simple examination of our shareholder lists we obtained from reliable authorities
clearly shows that our public float has been artificially increased by over 40% as a result of what I believe is illegal naked shorting,"
said Mr. Spangenberg. "We recognize and appreciate Nasdaq's commitment to ensuring market transparency and integrity, and
its mission to protect the interests of investors. It is in this spirit that we look forward to collaborating with all relevant authorities
to address instances of potentially illegal naked short selling in our stock, strengthen compliance, and protect our investors."
AI, Inc. is a Dallas-based predictive AI company focused on medical diagnostics for faster and more accurate treatment decisions in wound
care, with initial applications involving patients with burns and diabetic foot ulcers. The Company is working to revolutionize the management
of wound care by "Seeing the Unknown " with its DeepView System. The DeepView
System is a predictive device that offers clinicians an objective and immediate assessment of a wound's healing potential
prior to treatment or other medical intervention. With algorithm-driven results and a goal to change the current standard of care, the
DeepView System is expected to provide faster and more accurate treatment insight towards value care by improving patient
outcomes and reducing healthcare costs. For more information about the DeepView System, visit www.spectral-ai.com.
statements made in this release are "forward looking statements" within the meaning of the "safe harbor" provisions
of the United States Private Securities Litigation Reform Act of 1995, including statements regarding the Company's strategy, plans,
objectives, initiatives and financial outlook. When used in this press release, the words "estimates," "projected,"
"expects," "anticipates," "forecasts," "plans," "intends," "believes,"
"seeks," "may," "will," "should," "future," "propose" and variations
of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking
forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown
risks, uncertainties, assumptions and other important factors, many of which are outside Company's control, that could cause actual
results or outcomes to differ materially from those discussed in the forward-looking statements. As such, readers are cautioned not to
place undue reliance on any forward-looking statements.
should carefully consider the foregoing factors and the other risks and uncertainties described in the "Risk Factors" sections
of the Company's filings with the SEC, including the Registration Statement and the other documents filed by the Company. These
filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially
from those contained in the forward-looking statements.