The Vulcan Energy Resources Ltd (ASX: VUL) share price is storming higher on Thursday morning.
In early trade, the lithium developer’s shares are up 4% to $11.90.
Why is the Vulcan Energy share price storming higher?
Investors have been bidding the Vulcan Energy share price higher today after the company received an apology from short seller J Capital.
According to the release, last month Vulcan Energy issued proceedings against Timothy Murray and J Capital Research in the Federal Court of Australia in relation to a scathing short report. These proceedings have now been settled out of court.
The settlement includes permanent restraints preventing J Capital and Mr Murray from disseminating, publishing or republishing any matter of and concerning the company, its directors, and officers.
In addition, J Capital and Mr Murray have provided an open apology to the company, Dr Wedin, Mr Rezos, Mr Weimann and Dr Kreuter.
The J Capital apology
J Capital commented: “While J Capital and Mr Murray may have different views about the potential of Vulcan’s Zero Carbon Lithium Project, J Capital and Mr Murray apologise for the allegations regarding Vulcan’s Board and management.”
“J Capital and Mr Murrary sincerely apologise for any damage, distress and embarrassment caused to Vulcan’s Board and management, and in particular, to Dr Wedin, Mr Rezos, Mr Weimann and Dr Kreuter,” it added.
Vulcan Energy can now go back to focusing on more important things, such as working to become the world’s first lithium producer with net zero greenhouse gas emissions through its Zero Carbon Lithium project in Germany.
Following today’s gain, the Vulcan Energy share price is now up 330% since the start of the year. Recent gains have been driven by the announcement of binding lithium offtake agreements with car giants Stellantis, Volkswagen, and Renault.
The post Vulcan (ASX:VUL) share price storms higher after receiving short seller apology appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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