Ethel Jiang, 03 December 2018
The marijuana producer Aphria slumped as much as 30% — to a low of $5.60 a share — after a firm alleged the company’s business was full of overvalued buyouts and fraudulent financial reporting. “Aphria is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets,” short seller Quintessential Capital Management’s Hindenburg Research said Monday morning in a report titled “Aphria: a shell game with a cannabis business on the side.” Aphria responded Monday afternoon in a press release, referring Hindenburg Research’s report as “a malicious and self-serving attempt to profit by manipulating Aphria’s stock price at the expense of Aphria’s shareholders.”
