Bragar Eagel & Squire, P.C. is investigating potential claims against Aphria. The investigation concerns whether Aphria has violated the federal securities laws and/or engaged in other unlawful business practices.
On December 3, 2018, Hindenburg Research released a report titled, “Aphria: A Shell Game with a Cannabis Business on the Side.” According to the report, which was also released on Seeking Alpha, “Aphria is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets.”
On this news, Aphria’s share price fell by more than 24%, closing at $6.05 per share on December 3, 2018.
In response to the share price plummeting, Aphria issued a statement in which they say: "Investors should exercise caution in relying on the misrepresentations and distortions contained in the report and recognize that, by their own admission, Hindenburg Research '…stands to realize significant gains in the event that the price of any stock covered herein declines.' The report also states that, 'Hindenburg Research makes no representation, express or implied, as to the accuracy, timeliness, or completeness of [the information in report].'
"The report makes reference to the company's LATAM acquisition which closed on September 27, 2018. In connection with this transaction, the Board of Directors of Aphria confirmed that it received financial advice and a fairness opinion from a reputable firm that the consideration to be offered by Aphria in respect of the transaction was fair, from a financial point of view, to Aphria and its shareholders."