SVRN Inc (NASDAQ:SVRN) shares are in the spotlight Monday. Short seller Fugazi Research released a report calling the company “uninvestable.” Here’s what you should know.

Fugazi Research Raises Concerns About SVRN

In a research report on Monday, Fugazi alleged that investors misread SVRN, which neither belongs with AI infrastructure names nor began life as a crypto treasury vehicle. Until 2026, SVRN operated ships as OceanPal Inc, a shipping company spun off from Diana Shipping Inc (NYSE:DSX) in November 2021, the short seller said.

The report says the company has done four reverse splits since 2022, a cumulative 1-for-100,000 reduction in its share count, using them to keep its Nasdaq listing. Fugazi also alleged some of the roughly 55.5 million NEAR tokens the company holds sit as collateral with counterparties.

SVRN did not immediately respond to Benzinga’s request for comment.

Fugazi said in the report that a July 2025 offering set up heavy dilution from the start. According to the report, OceanPal collected about $18 million for 10,975,600 units that came with warrants. Holders could exercise those warrants without paying, and falling prices triggered extra shares. The share count then climbed from 18,586,812 on July 22 to 167,402,561 on Aug. 11 with no cash received, the report states.

Fugazi argues the PIPE’s $120 million headline hid a small cash haul of roughly $13.7 million, with the NEAR Foundation supplying about $100 million in tokens and holding 71.62% of the company on a fully exercised basis. Fugazi alleged that $10.5 million in cash and $4.5 million in stock went to the sellers of control, including Diana Shipping and Tuscany Shipping. That would leave roughly three-quarters of the PIPE’s cash with the old owners. Ernst & Young quit as auditor on the day the strategy debuted, per the report.

Fugazi Questions Vessel Sale and Delisting Fight

Fugazi said SVRN traded under $1.00 for 30 straight business days by March 2026. With a reverse split completed months before, Nasdaq skipped the usual compliance window and moved to delist. The company replied with a 1-for-20 reverse split.

Fugazi alleged that SVRN sold its remaining vessels for well below their carrying value. The buyer, Sezali Inc, is an affiliate of former Chairwoman Semiramis Paliou. Sezali paid by canceling 12,185 Series C preferred shares and issuing $5.0 million in promissory notes, about $17.2 million in face value.

Fugazi said the vessels carried an unaudited value near $40.8 million, and no fairness opinion or independent appraisal was disclosed.

SVRN Faces Missing Audit and Oct. 27 Deadline

Fugazi alleged the company recorded its first digital-asset, staking and derivatives activity during about three months with no auditor. The fiscal 2025 Form 20-F missed its original due date and the extended one, the report says, and investors have seen no balance sheet since unaudited Dec. 31, 2025 figures. Nasdaq’s cutoff for filing is Oct. 27, 2026, according to the report.

“Fugazi Research considers SVRN stock uninvestable at any price above zero,” the short seller said.

SVRN Shares Are Climbing

SVRN Price Action: SVRN shares were up 5.86% at $46.58 at the time of publication on Monday, according to Benzinga Pro. The stock was well off its highs for the session at last check.

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