RE:RE:Hopefully more to followThis is complete bull... they don’t even have their facts straight.. they didn’t pay $145MM for the Jamaican acquisition, they paid $18MM.. these shorters are so concerned for the shareholders, so they drive the SP to the ground so they can make millions and the SH’s lose everything, yup, they seem legit and looking out for the investors..
greenpasture1 wrote: All I can say is if this is proven and names of companies were changed to assist insiders in this plot, someone should be goingh to JAIL
Summary: Aphria Inc (NYSE:APHA)
- We are of the strong opinion that Aphria is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets.
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- Aphria’s recent C$280m Latin American acquisitions raise major red flags. Our extensive on-the-ground research shows that the transactions appear to be largely worthless.
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- Example: The official registered office of Aphria’s C$145m Jamaican acquisition is an abandoned building that was sold off by the bank earlier this year.
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- Example: Aphria’s C$50m Argentine acquisition publicly boasted sales of US$11m in 2017. A worker at the company, however, affirmed that 2017 revenue was only US$430k.
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- Documents show that Aphria insiders were likely undisclosed beneficiaries of these deals. We noticed what appear to be systematic attempts to hide the true nature of these transactions. For example: changing the names of the shell companies involved in a way that makes it harder to link them to Aphria’s insiders.
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- These M&A transactions are entirely financed by copious and dilutive share issuance. We estimate that Aphria has diverted upwards of C$700m via such transactions, or about 50% of Aphria’s total net assets.
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- Aphria consistently generates negative cash, and its cannabis seems to be of low quality. Interviews with sources describe facilities infested with bugs, stricken with mold, and having failed audit inspections.
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- Because Aphria generates a minimum amount of sales relative to its market cap, we believe that the uncovering of this alleged scheme, coupled with a massive asset write-off, would have catastrophic consequences for its share price.