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  "docSlug": "cce862680d4f",
  "documentTitle": "Heska Corporation (HSKA)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-10-25 00:00:00",
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      "kind": "callout",
      "text": "Heska has stated on numerous occasions that it sees an opportunity to convert existing scil customers in Europe to subscription programs... However, our research makes us skeptical...",
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      "kind": "callout",
      "text": "We believe IDEXX is very focused on the Europe opportunity and that the scil transaction has put a large number of customers in play. We believe this does not bode well for Heska.",
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      "kind": "callout",
      "text": "Heska has stated on numerous occasions that it sees an opportunity to convert existing scil customers in Europe to subscription programs, replicating its efforts with US customers that began in 2013. However, our research makes us skeptical, since (1) scil already offered subscriptions, so Heska’s year end 2020 figure is not indicative of recent conversions, and (2) IDEXX and Zoetis are laser focused on the European opportunity.",
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      "kind": "paragraph",
      "text": "On numerous occasions, Wilson has implied that the subscription opportunity is so great because scil has not been offering subscriptions... However, that doesn't appear accurate.",
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      "kind": "quote",
      "text": "\"We also continue to see a clear path to subscriptions conversion in our international installed base at a rate that is faster than our experience in North America circa 2013 through 2015.\" — Kevin Wilson, Q4 2020 Earnings Call; \"The diagnostic devices are sold to customers, rented as well as placed free of charge against a contractually guaranteed minimum turnover of consumables.\" — scil 2019 Annual Financial Report",
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      "kind": "source-note",
      "text": "Source: Bloomberg Transcripts, scil animal care company GmbH 2017, 2018, 2019 filings with Unternehmensregister, CVM deal press release",
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      "text": "Wilson Comments on Europe Subscription Opportunity: Q4 2020 Earnings Call transcript excerpt.",
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      "kind": "title",
      "text": "We Believe Heska Has Over-Hyped The Subscription Opportunity in Europe",
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      "evidence": "The deck presents a thorough analysis of Heska Corp.'s financials and business model, highlighting several red flags.",
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