Enochian Biosciences Inc. (NASDAQ: ENOB) is a company with grand ambitions, but facing poor ground realities. Given serious controversies surrounding ENOB stock, it has shed over 80% of its price in the last 12 months. To make matters worse for the company, it has recently received a non-compliance letter from NASDAQ, which could entail a delisting from the exchange.
ENOB Suffers After Data Falsification
Earlier this year, Enochian Biosciences Inc. (ENOB) was faced with terrible news, after the discovery that a former advisor had falsified and fabricated clinical data belonging to two separate projects. These related to a hepatitis B treatment candidate, along with an inhaler against Covid-19. Although Enochian has stated its plans to carry out legal proceedings against the former staffer, shareholders rightfully face duress about the company’s internal set of controls for data review and verification. ENOB management personnel did state that the company will restructure its protocols, but many market observers point out that the initiative is too little and too late.
Enochian Further Suffers After Co-Founder’s Arrest
This is not the first time Enochian has found itself in the midst of controversy. In the second quarter of the year, the CEO addressed shareholders, in light of bizarre news reports. These indicate that the company’s co-founder and advisor, Serhat Gumrucku facing arrest on charges of hiring a hitman to carry out a murder. The CEO emphasized that Serhat had no official position in the company, beyond being an advisor, and that too saw immediate termination when the news broke. The CEO further pointed out that shorters had deliberately been spreading propaganda regarding the story, in a bid to profit off the downfall of the stock.
ENOB stock is one that its shareholders have been rushing to get rid of. In addition to hardly any tangible results coming through against its broader ambitions, the company is heavy with serious controversy.