- Spruce Point Capital Management short with a seller runs a Remitly Global Remature Provide provider The stock price will decrease, according to a short report published this week. Spruce Point said it lacks confidence in the company’s financial reports due to the interruption in financing, risks and accounting, and the company later accused of manipulating certificates to look more worthy of users. He did not respond to multiple requests for comment.
Global transfers and money transfer money have witnessed a decrease in the price of its share by more than 2 % this week after the publication of Management Spruce Point Capital short seller A. A short report Listing a set of allegations against Fintech listed on the NASDAC, which costs $ 4 billion.
According to the SPRUCE POINT report, the Remitly Customer Customers “are questionable” and play an important role in its thesis, which questions the merit of the company. The hedge box claims that the reverse search tool revealed reviews that included pictures of smiling women who were wearing traditional sari and head covers were actually just pictures. SPRUCE Point also accused a shortcut of reviewing reviews on its website. In general, the hedge fund said that these points are evidence of transparency with customers. It took a short location in the company’s shares and has the derivative securities that will benefit if the share price decreased.
He did not respond to the requests for comment.
Transfers are an important financial lifeline for low -income countries: Migrants use transfers to send money to their countries of origin for bills, food and education costs. World Bank Projects The total amount of funds that have been transferred all over the world will be enlarged to $ 690 billion this year. The first five states of transfers flow are India, Mexico, China and the Philippines, respectively, with the United States the largest source around the world, followed by the Kingdom of Saudi Arabia and Switzerland.
Banks are the most expensive way to send transfers, as the cost of fees is about 12 % of the amount, while money is sent through mobile phone operators by 4.4 %, according to World Bank data.
abbreviation He describes himself As a reliable provider of digital financial services that exceed the limits and have a The global footprint Via 170 countries. It runs 5,100 passes around the world and users can send money to 5 billion bank accounts and mobile portfolios. It also has 470,000 cash receipt option. CEO Matt Obenheimer He said luck Last year, this confidence is a key to providing services for a wide user base that considers low -income immigrants who send savings to families in the country. Obenheimer said he personally deals with customer service calls when he visits the specified communication centers to ensure that users are carefully treated.
according to The annual financial report of 2025 for RemitlyThe company’s revenues grew by 34 % to $ 1.26 billion in the past year Profit in the third quarter. Active customers grew by 32 % year on an annual basis to 7.8 million, compared to 5.9 million in the previous year.
However, the stock price decreased after the Spruce Point report, and has decreased by 11 % so far.
The hedge fund wrote in the short report.
Spruce Point also claimed that it is vulnerable to competition from Stablecoins, which are digital currencies supported by a stable origin like the US dollar and can be used in transactions. Wise, a competitor in his transformer, is progressing in this field, as the short report claims. In addition to the competition, Spruce Point said that the company’s rotation in legal jobs, compliance and risks were “worrying”. Spruce Point has claimed eight executives in those job areas who have left since July 2024.
Last week, Vice President Joshua Hang announced vice president He leaves his role In May, but will remain in the board of directors as an employee manager. Agq, 45, established the company in 2011 and held the position of Executive Officer since October 2016. He holds about 2.5 % of the company’s shares, according to The most recent proxy statementHUG holdings include 2 million shares pledged as a guarantee to secure a personal credit line.
SPRUCE POINT also referred to the HUG stock, which has been entrusted as an example of “bad judgment with (A) a harmful effect on investors.” The hedge fund said that companies that follow best practices adopt policies prohibiting the pledge.
“By doing this, it reduces the harmful effect of forcibly for shares on margin calls or a sharp decrease in the value of the stocks,” SPRUCE POINT books.
A hug was not immediately responded to a request for comment.
This story was originally shown on Fortune.com
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