On December 4, Aphria (APHA) (APHQF) continued to fall. There were negative remarks that the company diverted investors’ funds to companies in Latin America that were linked to insiders at inflated values. Aphria lost almost 21.2% on December 4. The stock fell to 5.99 Canadian dollars from 6.6 Canadian dollars.
Aphria defends the acquisitions
Early on December 4, Aphria issued a press release defending its acquisitions in Latin America. The company tried to boost investors’ confidence by purchasing shares worth $3.1 million. The company’s CEO, Vic Neufeld, provided more details about the company’s Latin America business. He stated that the company has invested in building its operations with about 100 employees in the region. The company has interests in Columbia, Argentina, Brazil, and Jamaica.
Aphria stated that it was transparent in its disclosures about insider holdings. The prices that the company paid for the acquisitions were comparable with other deals in Latin America.
Investors weren’t fazed
Despite Aphria’s statement and the company’s confidence in the business, investors weren’t fazed. The sell-off continued throughout the day on December 4.
Next, we’ll discuss other developments related to Aphria.