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  "documentTitle": "Heska Corporation (HSKA)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2021-10-25 00:00:00",
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  "notes": "Includes screenshots of Heska's 10-K disclosure, Optomed's website, and a LinkedIn profile.",
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      "kind": "callout",
      "text": "We are troubled by two elements of the Optomed transaction. First, Optomed, is a distributor of products for Samsung and Medtronic, which is inconsistent with Heska's supposed shift to product innovation. Second, Optomed has been a distributor of Cuattro products since 2007. Acquiring a distributor has long been acknowledged as a financial red flag, and Spruce Point has a long history of identifying accounting issues related to such deals.",
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      "text": "Optomed co-founder Arnaud Duchene has already left the Company. Optomed is another low quality asset that is wholly inconsistent with Heska's stated strategy.",
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      "kind": "callout",
      "text": "Optomed co-founder Arnaud Duchene has already left the Company. Optomed is another low quality asset that is wholly inconsistent with Heska’s stated strategy.",
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      "text": "Optomed website snippet showing distribution of Samsung, Cuattro, and Medtronic.",
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      "text": "On February 22, 2019, Heska acquired 70% of the equity of Optomed, a French-based endoscopy company, in exchange for approximately $0.2 million in cash and the assumption of approximately $0.4 million in debt. On October 5, 2020, the Company acquired the remaining 30% minority interest in Optomed for a purchase price of $0.5 million, allowing the Company to assume full control of the business operations.",
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      "text": "Source: Heska 2020 10-K, Optomed website, LinkedIn",
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      "text": "Optomed: Another Deal That Doesn't Add Up",
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