On the same day Spruce Point Capital Management released its detailed report on the firm, Nuvei Corporation (TSX: NVEI) responded to the outlined allegations. The e-payment platform called the report “intentionally misleading.”
The New York-based firm announced yesterday its investment opinion on the Canadian company, claiming that the latter carries a long-term downside risk of 40% – 60% based on “documented findings and concerns.” This translates that the company’s share price should be $39.00 – $58.00.
Nuvei commented on the allegations in the report, highlighting Spruce Point’s short position in the company.
“The short seller admits that it stands to profit significantly from Nuvei’s stock price decline, at the expense of Nuvei’s shareholders, customers, and employees,” the fintech firm said in a statement.
The Montreal-based firm further argued that the report “draws inaccurate conclusions, innuendo and character attacks on key executives,” which it believes were made to “distract from the company’s achievements and progress.”
“The company urges investors to not make decisions based on the short seller report and to review public filings for material information that pertains to its business,” the company added.
Included in the report’s allegations against the company are its “clawback policy for financial restatement,” and revising revenue, operating, and financing cash flows “without explanation.”
For Q3 2021, the fiintech company posted US$183.9 million in revenue, US$28.0 million in net income, and US$80.9 million in adjusted EBITDA.
Nuvei Corp last traded at $73.12 on the TSX, down 40.4% on the day.
Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
