TORONTO — Shares of Aphria Inc. continue to fall for a third consecutive day after a short-sellers report that sent the cannabis grower’s stock tumbling more than 40 per cent this week as an investment company at the centre of the allegations defended its actions.
The Leamington, Ont.-based pot producer stock was down six per cent in morning trading to $5.62 on the Toronto Stock Exchange, in addition to a 43 per cent drop over Monday and Tuesday in the wake of a short-sellers report that called Aphria a “black hole for shareholders.'”
Quintessential Capital Management and Hindenburg Research alleged Monday that Aphria’s recent acquisitions of assets in Colombia, Argentina and Jamaica from Scythian Biosciences are “largely worthless” and bought in ways that the short-sellers believe benefit a group of insiders.
Scythian, now called Toronto-based SOL Global Investments Corp., says it is “satisfied” with the outcome and that the transaction completed in September was “thoroughly reviewed by both parties.”
SOL also says it will form a special board committee and engage independent counsel to review the short sellers’ allegations and “pursue all available legal relief.”
Aphria has called the short sellers allegations “false and defamatory.”
Companies in this story: (TSX:APHA)
The Canadian Press