Shares of MGP Ingredients are moving lower after Spruce Point Capital Management issued a short report on the name. A forensic examination of the company’s Luxcoin deal found “substantial evidence that the merger is failing to meet its promoted benefits despite potentially spring-loaded results, and that MGPI is making unusual cash flow and reporting revisions that point to historical financial misstatement,” Spruce Point wrote in a report published on its website. The firm believes t and that MGP “will again disappoint investors with an unexpected revision to forecasts.” It sees 35%-55% downside in shares to $45.70 – $66.00 “as investors recalibrate their expectations for declining profits and the justification for giving MGPI an expanded multiple in recent years.” Spruce Point believes MGP currently trades at a premium to the sum-of-the-parts of its alcohol and specialty ingredients businesses. The stock in premarket trading is down 5% to $96.01.