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  "documentTitle": "Hims & Hers Health, Inc. (HIMS)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2023-07-13 00:00:00",
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  "notes": "Includes a screenshot of the header of California Senate Bill 642.",
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      "kind": "callout",
      "text": "Recognizing the reality that stock restriction agreements under the Friendly PC model effectively give the management company control of entities practicing medicine, the California Legislature reviewed proposed Bill SB 642, which would have provided “ultimate control” (defined consistent with GAAP principles) to PC shareholders, directors, and officers and prohibited such individuals from being replaced, removed, or controlled by any lay (or unlicensed) entity or individual. We believe HIMS’ current structure would not be legal and allowed to operate under such a regulatory regime. The bill died in early 2022, but we view its history as evidence of material regulatory risk and that lawmakers acknowledge the abuses taking place.",
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      "text": "We believe HIMS' current structure would not be legal and allowed to operate under such a regulatory regime.",
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      "text": "Source: Spruce Point Research, JDSupra, SB 642",
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      "kind": "title",
      "text": "SB 642 Would Have Made HIMS' Implementation of the Friendly PC Structure Illegal",
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      "kind": "title",
      "text": "California Has Acknowledged CPoM Loopholes; Proposed Legislation Would Have Harmed HIMS",
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