Sezzle denies 'misleading' Hindenburg report
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The news: Sezzle has rejected a short report by Hindenburg Research which suggested the buy now, pay later company would collapse under growing credit losses.
In a statement, Sezzle said the report was financially motivated but stopped short of addressing the specific concerns raised in it.
The context: Shares in Sezzle dropped around 23% on Thursday after the short seller accused the company of insider selling at a time when bad credit provisions are rising.
While Sezzle delisted from the ASX in January, its shares on the Nasdaq rose around 2,000% this year, prior to the report.
What they said: "The Hindenburg write-up is simply misleading with statements that are out of context. Hindenburg, self-admittedly, is a short seller. That’s their business model. Therefore, they clearly have an agenda, irrespective of Sezzle," a company spokesperson said in a statement to Capital Brief.
"We believe the results speak for themselves. We remain confident in the guidance we provided the market in conjunction with our Q3 results. In the meantime, we will continue to execute our plans and look forward to updating the market with our Q4 results and 2025 outlook at the end of February."
The source: Sezzle statement
