{"id":19561,"date":"2018-12-06T17:11:48","date_gmt":"2018-12-06T17:11:48","guid":{"rendered":"http:\/\/www.ceo-na.com\/?p=19561"},"modified":"2018-12-06T17:17:34","modified_gmt":"2018-12-06T17:17:34","slug":"more-growing-pains-for-the-canadian-pot-industry","status":"publish","type":"post","link":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/opinion\/more-growing-pains-for-the-canadian-pot-industry\/","title":{"rendered":"More growing pains for the Canadian pot industry"},"content":{"rendered":"<p><strong><em>One company\u2019s shares fell rapidly as short seller published report on \u201cworthless\u201d acquisitions.<\/em><\/strong><!--more--><\/p>\n<p>Shares in Canadian cannabis company Aphria Inc. fell to their lowest level in more than a year earlier this week after a short seller published a report alleging the company has wasted hundreds of millions on foreign acquisitions that are effectively worthless.<\/p>\n<p>At a short-selling conference in New York, Gabriel Grego of Quintessential Capital Management outlined his report on the Leamington, Ont.-based company, calling the company a &#8220;black hole for shareholders&#8217; money.\u201d<\/p>\n<p>Aphria&#8217;s <a href=\"https:\/\/www.thestar.com\/business\/markets\/2018\/12\/05\/aphria-shares-slip-as-investment-firm-hits-back-at-short-sellers-allegations.html\">stock plunged<\/a> on both the Toronto and New York stock exchanges Monday, at one point falling to a new 52-week low of $7.38 per share in Toronto, down 29.8% from Friday&#8217;s close of $10.51.<\/p>\n<p>It is just one of many growing pains since Canada permitted the <a href=\"https:\/\/www.ctvnews.ca\/politics\/timeline-of-key-events-in-marijuana-bill-s-passage-through-parliament-1.3958662\">legal sale and purchase <\/a>of marijuana in October with companies and regulators alike struggling to find their feet.<\/p>\n<p>While Grego laid out a number of reasons for why he thinks Aphria is overvalued, his main argument is that he says the company spent $700 million buying up subsidiaries in the Caribbean and South America that don&#8217;t add any value to the company.<\/p>\n<p>Quintessential Capital Management alleged Aphria acquired foreign companies at inflated prices in ways that it believes benefited a group of company insiders.<\/p>\n<p>&#8220;In most instances, the entities acquired by Aphria exhibit little or no sales and operating activity, minimal assets and questionable corporate governance,&#8221; he said.<\/p>\n<p>Aphria called Grego&#8217;s allegations false and defamatory.<\/p>\n<p>&#8220;The company is preparing a comprehensive response to provide shareholders with the facts and is also pursuing all available legal options against Quintessential Capital,&#8221; it said in a statement Monday.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>One company\u2019s shares fell rapidly as short seller published report  [&#8230;]<\/p>\n","protected":false},"author":22,"featured_media":19562,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53],"tags":[1600,1599,630,1385,1601,1482],"class_list":["post-19561","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opinion","tag-aphria","tag-canadian-pot-industry","tag-cannabis","tag-ceo-northam","tag-more-growing-pains-for-the-canadian-pot-industry","tag-pot-industry"],"_links":{"self":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/19561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/users\/22"}],"replies":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/comments?post=19561"}],"version-history":[{"count":2,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/19561\/revisions"}],"predecessor-version":[{"id":19564,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/posts\/19561\/revisions\/19564"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media\/19562"}],"wp:attachment":[{"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/media?parent=19561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/categories?post=19561"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/servidor-mxigen1.com\/ceona-antiguo\/wp-json\/wp\/v2\/tags?post=19561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}