LifeStance shares fall after Hindenburg takes short position (updated)
01/02/2024 18:17
(Adds company's response in paragraphs 8 and 9, updates shares)
Feb 1 (Reuters) - Shares of mental healthcare provider
LifeStance LFST.O fell 5.8% to $5.64 on Thursday, after
Hindenburg Research said it had taken a short position on the
company's stock.
The stock declined as much as 21%, to hit a nearly one-year
low of $4.74 earlier on Thursday. It has declined 72.7% since
its debut on the Nasdaq in June 2021.
LifeStance Health manages a network of psychiatrists,
psychologists, nurse practitioners and licensed therapists
across the United States, offering in-person and telehealth
services, including customized treatment plans.
Short-seller Hindenburg said in its report that LifeStance
has had three chief financial officers in the last three years,
which can be a "key sign of financial stress".
Currently, David Bourdon serves as LifeStance's finance
chief and has held the position since
November 2022.
The short-seller said its assessment showed LifeStance will
need to raise cash imminently.
The company reported cash balance of $42.6 million at the
end of the third quarter, which Hindenburg referred to as
"razor-thin".
LifeStance Health said that Hindenburg's report was
"designed to mislead investors".
The company said it had "robust cash flow generation in
the recently closed fourth quarter and has strong liquidity" to
support its business.
(Reporting by Bhanvi Satija in Bengaluru; Editing by Pooja
Desai)
((Bhanvi.Satija@thomsonreuters.com; Outside U.S. +91
9873062788;))