{
  "docId": "019dd923-622c-750b-8b9a-32b620517ee9",
  "docSlug": "2ec39f20dd86",
  "documentTitle": "QuantumScape (QS)",
  "authorId": "58_Scorpion_Capital",
  "authorName": "Scorpion Capital",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2021-04-15 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.3333334,
  "pageNumber": 179,
  "pageCount": 188,
  "prevPage": 178,
  "nextPage": 180,
  "slideType": "expose_contradiction",
  "function": "expose_contradiction",
  "density": "overcrowded",
  "nDataPoints": 4,
  "notes": "Uses SEC filing excerpts and a Notice of Effectiveness screenshot as evidence of insider dumping.",
  "elementsJson": [
    "paragraph",
    "screenshot",
    "footnote"
  ],
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019dd923-622c-750b-8b9a-32b620517ee9/179",
  "deckHref": "/decks/019dd923-622c-750b-8b9a-32b620517ee9",
  "deckJsonHref": "/decks/019dd923-622c-750b-8b9a-32b620517ee9.json",
  "deckAnchorHref": "/decks/019dd923-622c-750b-8b9a-32b620517ee9#slide-179",
  "components": [
    {
      "bbox": null,
      "kind": "callout",
      "text": "We believe it is obvious that holders of the PIPE shares – purchased at $10/share – raced for the exits the very next trading day, crushing the stock.",
      "attrs": null,
      "subkind": null,
      "toolName": "Visual emphasis",
      "toolSlug": "visual-emphasis",
      "confidence": null,
      "componentId": "019dd952-f5d1-75b6-b065-eec770e0b1cf",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.25,
        "w": 0.3,
        "x": 0.05,
        "y": 0.62
      },
      "kind": "image",
      "text": "SEC Notice of Effectiveness document snippet",
      "attrs": null,
      "subkind": "screenshot",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a7dccc25-8f60-43a5-943c-3fab5792ab09",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.9,
        "x": 0.05,
        "y": 0.46
      },
      "kind": "paragraph",
      "text": "On November 25, 2020, a number of subscribers (each, a “Subscriber”) purchased from the Company an aggregate of 50,000,000 shares of Class A Common Stock (the “PIPE”), for a purchase price of $10.00 per share and an aggregate purchase price of $500.0 million (the “PIPE Shares”), pursuant to separate subscription agreements (each, a “Subscription Agreement”) entered into effective as of September 2, 2020. Pursuant to the Subscription Agreements, the Company gave certain registration rights to the Subscribers with respect to the PIPE Shares. The sale of PIPE Shares was consummated concurrently with the Closing.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "048ac878-a99d-4a28-a94e-150f0cb04a1a",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.25
      },
      "kind": "paragraph",
      "text": "QS indicates in SEC filings that it gave resale registration rights to holders of its PIPE shares. At the company’s request, the SEC issued a Notice of Effectiveness, effective as of 4pm on 12/31, allowing those shares to be sold. We believe it is obvious that holders of the PIPE shares – purchased at $10/share – raced for the exits the very next trading day, crushing the stock. Given that the stock traded ~85MM shares that day, we believe all 50MM shares were instantly dumped – barely a month after they were issued.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2d29bc79-b420-49b1-a0fe-16f8ba8ef274",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.9,
        "x": 0.05,
        "y": 0.08
      },
      "kind": "paragraph",
      "text": "The sudden crash was a mystery to most retail investors. Even Barron’s was confused: “It isn’t clear what is driving Quantum stock down.” The answer, we believe, was simple. On Nov 25, QS issued 50MM “PIPE Shares” for $500MM as part of its SPAC. Holders became free to dump those shares as of 12/31 on 4pm, which we believe they did at the next market open – barely a month after buying them.",
      "attrs": null,
      "subkind": "paragraph",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "c7aa66bb-1e36-4ec8-97f2-d712dce10000",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": null,
      "kind": "quote",
      "text": "It isn’t clear what is driving Quantum stock down. — Barron's",
      "attrs": null,
      "subkind": null,
      "toolName": "Authority citation",
      "toolSlug": "authority-citation",
      "confidence": null,
      "componentId": "019dd952-f5d1-75b6-b065-f191f411e9fa",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.6,
        "x": 0.05,
        "y": 0.95
      },
      "kind": "source-note",
      "text": "Source: https://www.sec.gov/Archives/edgar/data/1811414/000119312520329935/d53940ds1a.htm; https://www.sec.gov/Archives/edgar/data/1811414/999999999521000007/xslEFFECTX01/primary_doc.xml",
      "attrs": null,
      "subkind": null,
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "2fa918bd-dc39-4fcb-8550-d88e58d6f87d",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.9,
        "x": 0.05,
        "y": 0.04
      },
      "kind": "title",
      "text": "10) Retail investors are at major risk as the lockup expires on April 24th and insiders can dump the shares they’re pumping",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "54412068-41f9-4128-bc1c-dfaac4556989",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.6,
        "x": 0.05,
        "y": 0.42
      },
      "kind": "title",
      "text": "QS SEC filing indicates 50MM “Pipe Shares” sold on Nov 25 for $500MM",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "51887015-ff3a-44bd-b0de-71e9b79cb3bb",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.5,
        "x": 0.05,
        "y": 0.58
      },
      "kind": "title",
      "text": "SEC issued Notice of Effectiveness at 4pm on 12/31",
      "attrs": null,
      "subkind": "subtitle",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "5de6a45b-8f48-4454-b009-b73771272970",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [
    {
      "name": "fraud-exposure",
      "slug": null,
      "matchId": "beffc316-e169-448e-9f9b-416fbaf7c60a",
      "evidence": "The slide uses SEC filings to expose a contradiction between company claims and insider behavior.",
      "confidence": 0.9
    }
  ],
  "arcBeats": [],
  "loops": [
    {
      "to": 188,
      "from": 150,
      "name": "Cost Of Inaction",
      "slug": "27-cost-of-inaction",
      "bestFor": "Urgent budget requests, compliance, risk mitigation",
      "matchId": "30a3a7d5-9626-4db4-85ed-defeed0ba9d5",
      "evidence": "The document implies that investors may face significant losses if they do not take action.",
      "position": 1,
      "objective": "The cost of inaction for investors",
      "structure": "The Status Quo -> The Hidden Costs Accumulating -> The Future State of Inaction -> The Tipping Point",
      "confidence": 0.6,
      "description": "Quantify what happens if the audience does nothing"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}