ColorMax Stock Falls 22% After News About Lenses

ColorMax Technologies Inc.’s stock fell 22% Wednesday, a day after the government and the company noted that a new type of tinted lenses can help patients distinguish between colors but will not cure colorblindness.

The shares fell $2.75 to $10 in over-the-counter trading of about 38,300, more than two times its three-month daily average.

Shares of the Tustin-based company had almost doubled between Dec. 6, when it announced U.S. Food and Drug Administration approval for its Color Vision Enhancement Lenses, and Monday, a day before the FDA said it was investigating whether some promotions for the lenses were misleading. The lenses can help some patients distinguish between red and green, but aren’t a cure, the company and the FDA said.

On Tuesday, the shares fell $1.25 to $12.75.

“We aren’t generating this publicity,” company spokeswoman Julie Kim said. “We’ve never, ever said it was a cure for colorblindness.”

ColorMax, which changed its name from Ren-U International Inc. in September, said Monday that it will split its stock 2 for 1 as it applies for a listing on the Nasdaq National Market.