The hedge fund manager, who was assigned to the Greek retailer Folli Follie SA, now attacks one of the largest companies in Canada.
Gabriel Grego, founder of Quintessential Capital Management, told a conference in New York on Monday that Aphria Inc. (APHA.TO) diverts about half of the net assets in inflated investments held by insiders.
He says the company, which had a billion-dollar market capitalization of $ 2 billion last week, is a "black hole," according to a report he led in connection with Hindenburg research, a New York-based court analysis firm. Both firms steal Afry.
"The allegations made by the short seller Quintessential Capital in the report that issued this morning are false and defamatory," said Tamara McGregor, vice president of communications in Africa, in an email to BNN Bloomberg. She noted that Afria is preparing a detailed answer and "follows all available legal options" against typical capital.
The stock of Ontan-based Lemmington's shares fell at the start of trading in Toronto (APHA.TO) and New York (APHA.N). If held, it will be the biggest one-day drop in the stake after it was announced. Stock shares of the company TSX have decreased by 24.83 percent or 2.61 dollars for 7.90 dollars from 2:27 am. ET.
With files from BNN Bloomberg
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