Shares in Nuvei plunge after report by short seller Spruce Point Capital Management – Toronto Star

MONTREAL – Shares in Nuvei Corp. were down 40 per cent after a critical report on the company by short-seller Spruce Point Capital Management.

Nuvei shares were down $49.83 at $72.90 in late-morning trading on the Toronto Stock Exchange after falling as low as $54.47 earlier in the day.

Spruce Point raised concerns about Nuvei chief executive Philip Fayer and the company’s growth record and acquisition strategy. It suggested shares in the payment processing company faced a 40 to 60 per cent long-term downside risk.

Spruce Point said it has a short position in Nuvei and owns derivative securities that stand to benefit if its share price falls.

Nuvei did not immediately respond to a request for comment.

The Montreal-based company closed the Toronto Stock Exchange’s largest initial public offering in the technology sector last year.

This report by The Canadian Press was first published Dec. 8, 2021.

Companies in this story: (TSX:NVEI)