We are pleased to announce the release of a new and unique forensic investigative short-selling report tomorrow, May 8th on our website www.sprucepointcap.com ( {emailLinkId=556} https://www.sprucepointcap.com/ ).

For those who missed our short report on Nuvei ( {emailLinkId=557} https://www.sprucepointcap.com/research/nuvei-corp ) (TSX / Nasdaq: NVEI), a stock that has since declined by as much as 83% and taken private at a vastly reduced valuation, there are important lessons to be learned. When we exposed the shady business and dealings of Nuvei, we stressed heavily our concerns about management, and in particular the CEO, who we found to have made questionable claims about his education. We also pointed out that two executives, including the CFO, failed to disclose on their biographies stints at another public company that settled a non-prosecution agreement with the Department of Justice. We even doubled down on our short against Nuvei with a second report after its promotional event with Hollywood celebrity Ryan Reynolds ( {emailLinkId=558} https://www.bloomberg.com/news/videos/2023-04-18/ryan-reynolds-on-fintech-investing-soccer-social-media-video ). We believe the lessons to be learned from this case study in short-selling are clear: sell fast when the CEO is not transparent about his education, when executives omit problematic roles from their biographies, and when companies depend on celebrities to generate hype around their stock.

Tomorrow we will expose a Company that has what we believe is some of the worst management and board governance we've ever seen for a multibillion dollar public company. We will express concerns about the CEO's education claims, and also the fact that he has omitted a position from his biography over two decades ago that we believe is highly instructive in gaining insights to his current managerial behavior and relationships. But our issue with the CEO is only the tip of the iceberg. We were stunned to uncover that at least five executives and Board members of the Company are associated with an eye-opening seven public companies that had financial restatements. We will lay out the case why we believe the Company's business strategy is so flawed that even Warren Buffet and Berkshire Hathaway, which has a $190 billion dollar war chest at their disposal and who knows the business and industry, isn't choosing to follow the Company's strategy. We think it is because the business model is under more pressure than the promoters and management are leading investors to believe. Furthermore, given the executives' past associations with financial restatements, and anomalies we have recently identified with the Company's reporting, we believe the risk of financial misstatement is extremely high. Not surprisingly, there is no Clawback Policy in place in the event of fraud or misstatement, and the promotional Company has managed to tether itself to celebrities to juice the stock to near all-time highs, making the set-up for disappointment increasingly likely.

The full report can be downloaded tomorrow at www.sprucepointcap.com ( {emailLinkId=559} https://www.sprucepointcap.com/ ).

The recommendations listed above are not intended to be exhaustive or represent investment returns following Spruce Point’s research campaigns. A full list of all recommendations made over the past twelve months can be found on our website.

Please note that the items summarized in this communication are expanded upon and supported with data, public filings and records, and images in Spruce Point’s full report. Thank you very much for your continued interest in our investment research. If you wish to no longer receive our updates, please unsubscribe at the link below

Disclaimer

This communication is for informational and educational purposes only and shall not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, recommendation or endorsement to buy, sell, or sell short any security or other financial instrument or to buy any interests in any investment funds or other accounts. Spruce Point Capital Management LLC ("SPCM") has short positions in and may own combinations of put and call option interests on the reported Company and stand to realize net gains in the event that the price of the stock decreases. In addition, SPCM may be long competitive companies and stand to realize gains in the event these companies prices appreciate. You should assume that SPCM and its clients, partners, affiliates, consultants, contributors and subscribers will transact in securities of the Company prior to and subsequent to publication. The sender has no obligation to update the information contained herein and may make investment decisions that are inconsistent with the views expressed in this communication. To the best of SPCM's knowledge, the information contained herein is accurate and reliable, but the information is presented "as is". The sender makes no representations or warranties as to the accuracy, completeness, timeliness of the information, text, graphics or other items contained in this communication. The sender expressly disclaims all liability for errors or omissions in, or the misuse or misinterpretation of, any information contained in this communication. Wherever used, the words “may”, “could”, “should”, “will”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “believe”, and similar expressions identify forward-looking statements. Forward-looking statements and comparisons to past business situations should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether, or the times at which, such performance or results will be achieved. Forward-looking statements are based on information available at the time they are made, assumptions made by SPCM, and SPCM's good faith belief with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in forward-looking statements, historical results or current expectations. Past performance or success is no guarantee of future performance or success. SPCM is not a broker-dealer and not a registered accounting firm. Any recommendations, whether listed above or not, are not intended to be exhaustive or represent investment returns following Spruce Point’s research campaigns. A full list of all recommendations made over the past twelve months can be found on our website ( {emailLinkId=560} https://www.sprucepointcap.com/ ).

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