(Reuters) – Spruce Point Capital Management is no longer holding a short position in Nuvei, the Canadian fintech firm backed by Ryan Reynolds, after the company’s stock reached the short-seller’s price target range.
Spruce Point disclosed the decision in a tweet on Wednesday, sending U.S.-listed shares of Nuvei up nearly 1.4% at $28.75.
The Montreal-based fintech firm did not immediately respond to a Reuters request for comment.
In its short report in April, Spruce Point had allegedthat Nuvei’s $1.3 billion acquisition of Paya Holdings “appears troubled,” as Paya was losing market share before the takeover.
The short-seller had also questioned Nuvei’s ties with bankrupt crypto exchange FTX, saying the fintech may have had an equity interest in the exchange.
Both Toronto- and Nasdaq-listed shares of Nuvei have lost nearly a third of their value since Spruce Point disclosed its short position in April.
(Reporting by Niket Nishant in Bengaluru; Editing by Maju Samuel)
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Source: The Print
