There’s some bad marijuana stocks news today that sent Aphria (NYSE:APHA) stock plummeting.
This bad bit of marijuana stocks news comes in the form of a short-seller report for Aphria stock from Quintessential Capital Management founder Gabriel Grego. Grego called the stock a “black hole” during a recent New York conference.
Grego’s reasoning behind calling Aphria stock a black hole is what the company is doing with its assets. He says that half of its net net assets have been diverted to be used for inflated investments that are held by insiders at the company, reports Bloomberg.
The report from Quintessential Capital Management also comes with the help of research firm Hindenburg Research. It claims that insiders at Aphria used assets from retail shareholders to buy large positions in worthless overseas companies via shell companies. This then lead to Aphria buying these companies are overly high prices. Aphria has yet to release a statement concerning the claims made by Grego and this report.
This was a blow to Aphria stock for sure, but is also had further reaching effects. Several other marijuana companies saw their stock drop today following the statement made by Grego. A blow to APHA stock is big marijuana stocks news as the company is the fourth largest pot stock when looking at market value.
APHA stock was down 18% as of noon Monday and is down 51% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.