Criticism from short-sellers
Lately, Aphria (APHA) has been under fire from short sellers due to its acquisitions in international markets. Short sellers Hindenburg Research and Quintessential Capital Management released a negative report on Aphria that attacked its acquisition activities, especially in the Latin American (or LATAM) market. Hindenburg Research also slammed the company’s latest takeover bid from Green Growth Brands, citing a connection to Aphria’s CEO. Here’s what the CEO said during the earnings call.
Aphria on allegations
Aphria’s CEO, Vic Neufeld, stated that the company’s independent committee is undergoing a “comprehensive review of the allegations that were made relative to our recent acquisition of LATAM Holdings.” The CEO further added that the independent committee “intends to fully address short-seller allegations.” Aphia’s LATAM investments received validation from Bloomberg recently.
Now let’s look at Green Growth’s hostile takeover bid, which we covered in-depth in our series, Valued at $2.1 Billion, Aphria Isn’t Worthless Anymore. In its earnings call, CEO Vic Neufeld stated that it has not received an “active offer” from Green Growth Brands. The CEO added that Green Growth’s offer was significantly undervalued and stated that “given the hostile nature of the proposal, our Board of Directors has established an independent committee of directors to consider proposals and any formal offers received.”