Cannabis Company Craters After Shortseller Calls It a ‘Black Hole’
- Aphria falls as much as 29% in New York trading on Monday
- Canadian company is latest targeted by Quintessential Capital
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Aphria Inc., one of the biggest Canadian pot companies, fell 23 percent in New York after a short seller said it was a “black hole”.
Gabriel Grego, founder of Quintessential Capital Management, told delegates at a conference in New York Monday that Aphria had diverted funds into inflated investments held by insiders. In a report he ran in conjunction with Hindenburg Research, a forensic analysis firm, Grego said the company, which had a $2 billion market capitalization last week, is worthless. Both Quintessential and Hindenburg are shorting Aphria.