Proposed class action launched against cannabis producer Aphria Inc.

TORONTO — Law firm Koskie Minsky LLP says it has filed a proposed class action against cannabis company Aphria Inc. and its chief executive and financial officers after the company was targeted by short-sellers.

The firm says the lawsuit alleges the company made false and misleading statements related to its acquisition of LATAM Holdings Inc., had improper disclosure controls and procedures, and that company insiders benefited from the deal. None of the claims have been tested in court.

The proposed class action comes after short-sellers Quintessential Capital Management and Hindenburg Research alleged in early December that the cannabis grower’s acquisition of the LATAM Holding assets in Colombia, Argentina and Jamaica totalling $280 million from Scythian Biosciences were “largely worthless.”

Koskie Minsky says the short-seller action led the company’s share price on the Toronto Stock Exchange to drop from a close of $10.51 on Nov. 30 to a low of $5 on Dec. 5. It says it is filing the class action on behalf of investors who held Aphria shares between July 17 and Dec. 3.

Aphria said on Dec. 6 that it had set up a special committee of independent directors to review the acquisition. The company did not immediately respond to a request for comment on the proposed class action.

The company’s share price was trading up 48 cents, or about 6.6 per cent, at $7.80 in afternoon trading on the Toronto Stock Exchange.

Just Posted

Iowa City student killed in B.C. bus crash remembered as kind soccer talent

VICTORIA — One of two 18-year-old students who died when a tour… Continue reading

Elizabeth May seeks to blow past political pack with platform roll out

OTTAWA — Green Leader Elizabeth May pushed past the political pack Monday… Continue reading

Two senior Canadian Forces members charged with sexual assaults

OTTAWA — Military police have laid sexual-assault charges against two senior members… Continue reading

Ortis arrest ‘unsettling,’ top Mountie says amid damage assessment

OTTAWA — The Mounties are assessing and trying to mitigate the damage… Continue reading

BREAKING: One man shot at Crossiron Mills Mall

Rocky View County, Alta — Airdrie RCMP and Calgary Police Service are… Continue reading

WATCH: 2019 Canada Winter Games will leave a lasting legacy, say organizers

It leaves Red Deer with the infrastructure and confidence to host future such events

Your community calendar

Wednesday Central Alberta Historical Society annual general meeting is 6 p.m. at… Continue reading

Opinion: City must aim for zero per cent tax hike

Red Deer city council is discussing the benefits of multi-year budgets, which… Continue reading

Iowa City student killed in B.C. bus crash remembered as kind soccer talent

VICTORIA — One of two 18-year-old students who died when a tour… Continue reading

Elizabeth May seeks to blow past political pack with platform roll out

OTTAWA — Green Leader Elizabeth May pushed past the political pack Monday… Continue reading

Two senior Canadian Forces members charged with sexual assaults

OTTAWA — Military police have laid sexual-assault charges against two senior members… Continue reading

Ortis arrest ‘unsettling,’ top Mountie says amid damage assessment

OTTAWA — The Mounties are assessing and trying to mitigate the damage… Continue reading

NHL players stay with CBA, labour peace set to at least 2022

The National Hockey League will play its next three seasons without the… Continue reading

Most Read