Enviva falls as Blue Orca takes short position

Enviva

12/10/2022 15:01

** Shares of Enviva  EVA.N  down 4.4% at $56.33
    ** Activist investment firm Blue Orca says it is short on
the utility-grade wood pellets supplier
    ** Enviva is a "dangerously levered serial capital raiser
whose deteriorating cash conversion and unprofitability will
drain it of cash next year," the short report says
    ** Blue Orca also alleges the company's EBITDA is inflated,
believes it will cut its dividend 
    ** Enviva did not immediately respond to request for a
comment
    ** A short seller is a bearish investor that borrows stock
only to sell it in the market with the hope of buying it back
when stock declines and pocketing the difference 
    ** In June, EVA said it would raise $246 mln by offering
tax-exempt green bonds  urn:newsml:reuters.com:*:nBw4Fq1pXa
    ** Stock up about 5.4% in the past year
 (Reporting by Medha Singh)
 ((medha.singh@thomsonreuters.com))