On Tuesday, shares of ASP Isotopes (ASPI) plummeted by 20% following a critical report from Fuzzy Panda Research. The report alleges that ASPI is utilizing outdated laser enrichment technology and is connected to individuals previously charged with securities fraud.
Fuzzy Panda Research claims that ASPI is masquerading as a new, innovative Uranium enrichment company while in reality, it is leveraging old and uneconomic technology. The report cites conversations with former executives from customers and competitors who have deemed ASPI's technology virtually worthless. It further states that ASPI's technology was once considered for acquisition by Centrus, but was rejected as it was not valued even at $2 million.
The report also mentions an array of concerns, including ASPI's lack of patents, with the company claiming that patents would be detrimental and that their process is a trade secret. Additionally, it highlights the company's questionable history, noting that it was incorporated in September 2021 and funded shortly after by a shell company with connections the individuals previously charged with securities fraud.
The investigation by Fuzzy Panda Research could not locate multiple ASPI subsidiaries at their registered addresses in South Africa. Furthermore, the report states that ASPI's AVLIS technology, which involves the laser enrichment of uranium, has been scrapped by twenty governments after decades of research due to its lack of economic viability.
Experts have also expressed doubts about ASPI's ability to obtain an NRC license to enrich Uranium, a process that could take up to 15 years. They have also contested the company's cost estimates for building facilities, suggesting that the actual costs could run into the billions, as opposed to ASPI's claim of less than $10 million.
The report concludes by asserting that ASP Isotopes might be the most egregious case yet of a paid stock promotion based on outdated technology, with a history of government research indicating that the technology is commercially nonviable.
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