Fund manager, Blue Sky Alternative Investments (ASX:BLA) has announced an independent review of the company’s processes and financial reporting.
The move comes after foreign short seller Glaucas claimed the Blue Sky’s shares were 77 per cent over-valued last month.
While last week The Australian reported that insolvency advisers and investment bankers were circling the asset manager.
The business says recent negative media speculation is likely to limit the company’s ability to make new investments in the short term, and will negatively impact Blue Sky’s ability to generate fees for the rest of this financial year.
Blue Sky’s board has downgraded its 2018 financial year net profit (NPAT) guidance from around $35 million to $20-$25 million.
Shares in Blue Sky Alternative Investments (ASX:BLA) are trading 22.14 per cent lower at $4.08