Shares of Mazer Robotics (NASDAQ: MZOR), an Israeli-based robotic-surgery company focused on diseases of the spine and brain, fell by 11% in afternoon trading on Thursday.
Mazor released an SEC filing today stating that the Israeli Securities Authority (ISA) conducted a search at the company's office. The ISA is also questioning "certain officers" in connection with an investigation being run by the agency.
Mazor's response to this news was brief: "Mazor has not been informed as to the subject matter of the investigation, nor has it been charged with any wrongdoing. Mazor is cooperating fully with the ISA."
As expected, a number of law firms have already announced their intention to conduct investigations on behalf of shareholders to see if Mazor has misled the public. Given the unexpected news, it's easy to understand why traders are selling off shares today.
Without any additional information, it's hard to know what to make of today's news. It's possible that we could learn a great deal more about this situation tomorrow as CEO Ori Hadomi is scheduled to give a presentation at the Jefferies 2017 Global Healthcare Conference at 8:00 a.m. EDT. While the conference is invitation only, a webcast is going to be published on the company's website.
While this news is certainly unsettling, I'm personally still a believer in Mazor's products and long-term potential. For that reason, I'm content to sit tight until more news surfaces.