IQE, a small Welsh firm supplying technology to Apple's iPhones, has dismissed claims by a short seller that it is misrepresenting profits.
In an update to the market on Monday morning, IQE said a report published by ShadowFall Capital and Research on Friday in which the allegations were made are "without merit and provide a misleading analysis of the company's financial position".
Shares in the Aim-listed company have become one of the most shorted, with more than 10 per cent of its shares now held as a short interest.
IQE's share price rocketed more than 300 per cent last year after it was linked with Apple. It's understood to supply components for the iPhone X's 3D camera sensors.
IQE shares dipped as much as 14 per cent lower on Monday morning, but pared that loss to trade around three per cent lower by mid morning.