10:57 AM EDT, 04/04/2024 (MT Newswires) -- AXT (AXTI) shares were down more than 22% in recent Thursday trading after JCapital Research said the material science company "may be on the brink of collapse" and "US investors know little of the peril."

"AXTI sales have crashed, production plummeted, and environmental problems forced the company to move hazardous chemical operations to a rural county 300 miles from the factory," the research firm said in a note.

Production was stopped more than 10 times over the last five years due to environmental problems, according to the note.

Since early 2023, production volume has only been 50% of capacity, with no prospects for sales recovery, according to JCapital Research, citing information from three former employees.

The company's attempt to list its subsidiary in China on the STAR Market failed and ATX may have to repay around $49 million raised from private Chinese investors in 2020 and 2021, according to the note.

AXT did not immediately respond to MT Newswires' request for comment.

Price: 3.86, Change: -1.09, Percent Change: -22.12