Home Tech Canadian tech firm Lightspeed walloped by short seller attack

Canadian tech firm Lightspeed walloped by short seller attack

0

Fast-growing Canadian technology company Lightspeed is pushing back after a short seller alleged the company has misled investors about its financial health, causing a $2 billion plunge in the company’s value.

On Wednesday, Spruce Point Management, an American short-selling investment firm with a history of targeting Canadian companies, put out a lengthy report on Montreal-based Lightspeed Inc., alleging the company has covered up “massive inflation” of how many customers it has, how much money it makes from them, and how much growth potential it has.

Lightspeed is a payment processing company that helps small businesses sell things online and in person. It has been compared to Ottawa-based Shopify, which is currently the most valuable company in Canada.

Lightspeed “baits investors with its massive potential in its payments solution, but we believe it has not been transparent about competitive pressures and material margin decline,” the report…

Click here for full article…www.cbc.ca