Know Labs Inc (KNW)

[tim00mike]

FYI - Rockley Photonics Holdings

We are short Rockley Photonics $RKLY. We believe the company is experiencing technological roadblocks and will soon face a cash crunch and heavy dilution. 1/13 pic.twitter.com/zt1cSWDTmz

— Iceberg Research (@IcebergResear) April 22, 2022

Iceberg Research published on Rockley Photonics Holdings (NYSE: RKLY — $456 million), a UK-based startup that is developing biosensors for smartwatches and medical devices. Iceberg wrote that “the company is experiencing technological roadblocks and will soon face a cash crunch and heavy dilution.” Iceberg highlighted long delays by Apple in rolling out similar biosensor technology and cited that a major joint venture partner of Rockley, Hengtong Optic-Electric, was recently sanctioned by the U.S. Department of Commerce. In addition, Rockley signed a “vulture financing” deal with Lincoln Park Capital because of a nearly 50% redemption rate in its SPAC closing process. Rockley is down ~75% since its August 2021 IPO.