Sharps Technology

Kurta Law is investigating broker recommendations of Sharps Technology (NASDAQ: STSS). These investments were high-risk, meaning they would have been unsuitable for many investors. The Financial Industry Regulatory Authority (FINRA) defines suitable investments as investments that suit an investor’s risk tolerance, as well as other key characteristics such as age, financial goals, tax status, and overall investment strategy. Brokerage firms should also perform their due diligence before approving an investment for recommendation to clients. 

If you believe you suffered losses as a result of broker misconduct, contact the investment loss attorneys at Kurta Law today. Call (877) 600-0098 or email info@kurtalawfirm.com.  

About Sharps technology  

According to the prospectus, Sharps is a medical device company that designed and patented various safety syringes that it was seeking to commercialize.  

The Offering  

The prospectus dated April 13, 2022, announced Sharps Technology’s offering of 3,750,000 units for $4.25 per unit. Each unit comprises one share of common stock and two warrants. Each warrant is exercisable for one share of common stock. Warrants allow investors to buy shares of a stock for a certain price by a specified deadline. 

As of April 15, 2024, shares of Sharps Technology traded for $0.31. The prospectus clearly states, “Investing in our securities involves a high degree of risk.” Any broker knew or should have known about the following risks, which all appear in the prospectus.  

Risks Associates with Sharps Technology Investments  

Sharps Technology Investments disclosed the following risks in its prospectus. Brokers who recommended these investments should have known about these risks.  

Early-Stage Company with a History of Losses  

At the time of filing the prospectus, Sharps Technology had a limited operating history. They also had yet to commercialize their Sharps Provensa product line.  

Commercialization 

Sharps Technology disclosed that it may not be able to adequately market its products. It also may not be able to effectively scale manufacturing and retain a skilled support team.  

Competition  

Many medical device companies offering safety syringes and more competitors could enter the industry.  

Product Liability  

As a manufacturer of safety needle products, Sharps Technology faces an inherent business risk of exposure to product liability claims. The company’s success depends on the quality, reliability, and safety of its products. Any defects could damage the company’s reputation and hurt sales.  

Regulations  

Changes to the regulatory requirements could materially affect this business. Failure to obtain marketing and regulatory approval internationally would prevent Sharps Technology from marketing internationally.  

Potential Delisting  

Sharps Technology could be delisted from an exchange if it continues to fail to reach $1.00 per share. Delisting from the exchange would make it difficult for investors to unload their shares.  

Aegis Capital Corp. Underwriting     

Investors should know that Aegis Capital Corp. served as the underwriter for this offering. Underwriters take on risk in exchange for a fee, which could motivate certain investment banks to underwrite investments that pose too much risk for the average retail investor. Additionally, brokers may have conflicts of interest when they recommend shares that are underwritten by an affiliate of their brokerage firm.   

Kurta Law Can Help  

Contact Kurta Law today for a free case evaluation – keep in mind that you have a limited time to file a claim. Our attorneys do not collect a fee unless we win your case. If you have any questions, call (877) 600-0098 or email info@kurtalawfirm.com.