RE:RE:RE:It usually takes about 5 to 6 weeks for a company to do carterZ21 wrote: I have to some degree agree with daredevil on this one. We have to assess the facts as we know them at this time.
1. Aphira has held talks with Molson Coors, Altria, Coca-Cola any possibly others with no deal realized. There is only one or two possibilities as to why the deal didn't go through.....due diligence resulted in some "uncertainties" concerning APHA's business or management couldn't accept terms. Either way, APHA left at the alter, not a positive indicator to the market. Each major equity deal that is consummated with other marijuana plays doesn't bode well for APHA.
2. WEED, CRON (and maybe ACB soon) have equity deals with major US partners. Given that APHA is now subject of a short seller research report what does one believe a prospective suitor may consider doing? I would suggest APHA is going to have to open a data room to prospective equity partners of unprecedented scale. No right minded major corporation would consider investing a dime in APHA until they are satisfied that the clouds over the company have cleared. What that means IMHO is an investment in APHA is dead money for months at a minimum.
3. Mr. Vic recently bought shares on the open market in an attempt to slow the share price meltdown and instill confidence. What this means is that there are no potential deals in the pipeline as otherwise he would be in violation of insider trading regulations. again, not good, no short term catalyst on the horizon to move the share price anywhere near $15.00.
4. Although we do not know for a fact, one could reasonably assume that the SEC, OSC and possibly criminal authorities are looking into the company. A company of this market capitalization and the recent trading volatality would not escape their attention. Again, not good. If an investigation so much as revealed some regulatory breaches under a Securities Act in regards to certain Latin American/Carribean investments the share price hurt will be far worse than now. The company would trade at less than fair market value and would be the Chernobyl of the TSX until some hedge fund picks it up for a song, strips out marketable assets for sale and the rest is history.
5. In terms of. aline by line rebuttal of the short seller report, I would have had an army of lawyers and accountants and anyone else Vic believes could add value to preparing a rebuttal pronto. Every day that goes by without same only validates the short seller report and position.
6. The news of the CRON deal today was a freeby for the shorts. WEED, ACB, TGOD RIV all went up today except APHA. The shorts clearly pounced on the fact that Altria saw CRON as the better option fthan APHA or whatever the reason.....again not good.
7. And by the way does anybody really know who this DeFrancesco character is?
Listen longs, I hope the skies clear however I'm seeing fewer and fewer reasons to initiate a long position.
GLTA
aGREED!! Finally someone putting the pieces togther, could not agree more with ya!!
glta
gr8shot