BMF Capital Reveals Short Position On Connexa, Calls It A ‘Textbook Penny-Stock Hustle’

BMF Capital announced on Thursday that it has shorted Connexa Sports Technologies (YYAI), calling the company’s strategy a “textbook penny-stock hustle masquerading as a Nasdaq tech play.”

Connexa’s stock slipped more than 5% during midday trade, with retail sentiment on Stocktwits trending in ‘bearish’ territory over the past day. 

The short seller argued the company has repeatedly pivoted from one failed gimmick to another, adopting buzzwords like it was a “a serial grifter.” It noted that Connexa started with tennis ball launchers, then chased pickleball hype, later touted “connected sports hardware,” and now claims to be building an AI matchmaking platform.

The report said that despite the hype Connexa has created around its endeavours, the company’s fundamentals tell a different story. It highlighted that Connexa only has $54,000 in cash at the end of the financial year 2025 and that it lacks liquidity, with management openly admitting that cash and receivables will not cover the next 12 months. “Insolvency risk is staring them down,” BMF Capital said.

Governance was another focal point. According to the report, Connexa operates more like a private fiefdom than a public company, with majority shareholder Hongyu Zhou—who controls about 56%—filling the board with his allies.

BMF Capital also flagged the company’s auditing history. Until late 2024, Connexa’s books were signed off by Olayinka Oyebola & Co., the same firm the SEC is seeking to bar for its role in a multi-hundred-million-dollar fraud at Tingo, the report said. Meanwhile, Connexa’s much-hyped “connected sports” device, the Slinger Bag, was ultimately sold for just one dollar—the liquidation value management assigned to its former flagship business, it added.

“Behind the shiny new ‘AI licensing’ story is a company bleeding cash, reliant on dilution, and controlled by a single shareholder,” the short seller said. “One more Nasdaq notice, one failed financing, and this thing implodes.”

Connexa’s stock has gained more than 250% this year but fallen 41% over the past 12 months.

Read also: Peter Navarro Rules Out Steel, Aluminum Tariff Exemptions For EU And Other Allies

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