Aphria’s short sellers
Last week, Green Growth Brands released a press statement that reaffirmed its takeover bid for Aphria (APHA). In that same press statement, Green Growth also appeared to take a swipe at Aphria’s short sellers. Green Growth Brands stated, “We understand that there are some in the market who want to focus on destroying value at Aphria, but we are committed to creating it.”
When short sellers strike
Recently, Aphria has been under fire from short sellers Hindenburg Research and Quintessential Capital Management. The shorts first released a scathing report on Aphria on December 3, 2018, attacking its acquisition activities, especially in the Latin American market. Following that release, Aphria defended itself but continued to fall. On December 4, Hindenburg responded to that defense, and on December 6, it reiterated its bearish views on Aphria with yet another report.
More recently, Hindenburg Research slammed the latest takeover bid for Aphria from Green Growth Brands. Aphria responded by stating that all its transactions have been previously disclosed, and the directors of its independent committee have no relationship with Green Acre Capital Fund II or Green Growth Brands.
These attacks on Aphria also dampened the mood for other cannabis stocks (MJ) including Canopy Growth (WEED) (CGC), Tilray (TLRY), and Aurora Cannabis (ACB).