Proactiveinvestors United Kingdom Aphria https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom Aphria RSS feed en Sun, 16 Jun 2019 14:07:11 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Aphria shares pop after short-seller Andrew Left moves to sell stake ]]> https://www.proactiveinvestors.co.uk/companies/news/213904/aphria-shares-pop-after-short-seller-andrew-left-moves-to-sell-stake-213904.html Shares of Aphria Inc (NYSE:APHA) gained traction in pre-market trade Monday in the wake of famed short-seller Andrew Left of Citron Research announcing he would take profits on the Canadian cannabis company.

In a tweet on Friday, Left said he was exiting his position in Aphria as the stock had gained more than 60% since his call a month ago.

Taking profits on $APHA. Stock up 60% since call a month ago. Canadian Weed has run too far moving into in US names. $CRON short with stock trading 70% above analyst tgt. As CIBC noted "sophisticated investors are beginning to shift capital to U.S operators."

— Citron Research (@CitronResearch) February 1, 2019

On December 18, Citron forecast in a report that Aphria would jump to $8 before the end of 2018. 

Left's prophecy has come true and before the opening bell on Monday, Aphria shares were up 5.9% at US$10.19.

In its most-recent tweet, Citron also said it was focusing investing effort on US cannabis stocks, writing “Canadian weed” has “run too far”. Left also said he was shorting cannabis rival Cronos Group Inc (NASDAQ:CRON), which has seen its shares ramp up by more than 50% since the tobacco giant Altria Group Inc (NYSE:MO) agreed to take a US$1.8 billion stake in the company last December.

READ:Short-seller Andrew Left of Citron Research sounds off: take profits in Aphria, short Cronos Group

Cronos shares were trading 3% higher before the opening bell at $21.46 despite Left’s move to go short.

A string of good news has also served to boost Aphria shares in recent days. On Friday, Aphria revealed it would be one of the first cannabis producers to sell its own cannabis in Europe by announcing it had transferred plant cuttings from four weed strains to its Danish partner Schroll Medical.

Aphria shares also saw a boost, thanks to a Bloomberg report saying that Green Growth Brands is flexible and open to negotiations about its unsolicited bid for the Canadian cannabis company. Under the deal’s current terms, Ohio-based Green Growth has offered Aphria stakeholders 1.5714 shares of Green Growth stock for each Aphria share.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

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Mon, 04 Feb 2019 07:58:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213904/aphria-shares-pop-after-short-seller-andrew-left-moves-to-sell-stake-213904.html
<![CDATA[News - Aphria expands Latin American medical cannabis presence with entry into Paraguay ]]> https://www.proactiveinvestors.co.uk/companies/news/211078/aphria-expands-latin-american-medical-cannabis-presence-with-entry-into-paraguay-211078.html Canadian cannabis company Aphria Inc (TSX:APH) (OTCQB:APHQF) said Wednesday that it has signed a Letter of Intent with Paraguayan pharma company Insumos Medicos SA, for the exclusive supply and distribution of medical cannabis in Paraguay.

“Latin America continues to represent an important growth opportunity within the global medical cannabis industry, and we are excited to be among the first to enter the rapidly emerging market in Paraguay,” said Aphria president Jakob Ripshtein.

READ: Aphria forms special committee to review its Latin American acquisitions

“Our strategic partner, Insumos, is well-positioned to establish a leading presence for the company’s products throughout the country,” he added.

In September, Aphria closed the acquisition of LATAM Holdings Inc from Scythian Biosciences (CSE:SCYB).

On Wednesday, the company backed its Latin American operations and strategy and reiterated its confidence in the process leading to its C$280 million worth of Latin American acquisitions.

“Aphria will continue to expand its footprint in the most strategic markets in Latin America and around the world through its diversified approach to innovation, partnerships and expansion,” emphasized Ripshtein.

Aphria has supply agreements with every province in Canada and the Yukon Territory, ensuring access to Aphria products for 99.8% of the Canadian population. It has launched a large portfolio of adult-use brands: Solei Sungrown Cannabis, RIFF, Good Supply, and Goodfields.

The stock was up nearly 4%  in premarket trade Wednesday but pared its gains after the bell to $11.57 in the OTC Markets.

 

Contact Uttara Choudhury at uttara@proactiveinvestors.com

Follow her on Twitter: @UttaraProactive 

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Wed, 12 Dec 2018 10:21:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211078/aphria-expands-latin-american-medical-cannabis-presence-with-entry-into-paraguay-211078.html
<![CDATA[News - Aphria forms special committee to review its Latin American acquisitions ]]> https://www.proactiveinvestors.co.uk/companies/news/210700/aphria-forms-special-committee-to-review-its-latin-american-acquisitions-210700.html The board of Canadian cannabis company Aphria Inc (TSX:APHA) (NYSE:APHA) has appointed a special committee of independent directors to review its takeover of LATAM Holdings in a bid to address “inaccurate and misleading” accusations by short-sellers.

The move comes after shares of Aphria tumbled this week in response to a report by the short-seller Quintessential Capital Management, which calls Aphria a “black hole” and takes aim at Aphria’s recent C$280 million worth of Latin American acquisitions.

In Thursday's morning trading session, Aphria shares kept sliding, falling by another 13.5% to $3.90.

READ: Canadian medical marijuana company Aphria pegs C$225mln war chest to build new facilities

Released on Monday, the report by Quintessential Capital Management and Hindenburg Research says Aphria’s Latin American acquisitions “raise major red flags” and that the transactions appear to be largely worthless based on extensive "on-the-ground" research.

The Quintessential analysts went so far as to accuse Aphria of being "a shell game with a cannabis business on the side". 

"We are of the strong opinion that Aphria is part of a scheme orchestrated by a network of insiders to divert funds away from shareholders into their own pockets," the analysts wrote.

On Thursday, Aphria again backed its Latin American operations and strategy and reiterated its confidence in the process leading to its acquisitions there.

But in the face of the criticism by the short sellers, Aphria is undertaking a comprehensive review, led by John Herhalt, Shlomo Bibas and Tom Looney. Herhalt, the lead independent director and chair of the audit committee, will chair the committee.

“We are committed to protecting our shareholders and restoring market confidence by confirming all the facts through an independent process to rebut innuendo and deception,” said Vic Neufeld, Aphria’s CEO in a statement.

Contact Ellen Kelleher at ellen@proactiveinvestors.com

 

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Thu, 06 Dec 2018 09:11:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/210700/aphria-forms-special-committee-to-review-its-latin-american-acquisitions-210700.html
<![CDATA[News - Pot stocks: a pause in the bull trend or a bursting of the bubble? ]]> https://www.proactiveinvestors.co.uk/companies/news/207878/pot-stocks-a-pause-in-the-bull-trend-or-a-bursting-of-the-bubble-207878.html On October 17, 2018, Canada became the only member of the Group of Seven (G7) countries to officially legalize the adult recreational use of marijuana. It was supposed to be a day of celebration for cannabis investors and marijuana company executives alike.  

Loui Anastaopoulos, the president of capital formation at TMX (the financial services company that runs the Toronto Stock Exchange), said this following the ringing of the opening bell that day by a group of cannabis executives gathered at the TSX:

“It’s historic what we’ve done here, and we’re proud to be sitting at the center of all this, to facilitate the growth of cannabis companies in Canada.”  

Unfortunately, Anastaopoulos’ enthusiasm and pride were unable to prop up the many cannabis stocks momentum traders and growth investors have been bidding to dizzying heights since mid-August.   

And in the three to four days following the full legalization of marijuana in Canada, the stocks of nearly all the most popular and well-known cannabis companies crashed between 15% and 30%.  

I’m a trader at heart. And that means never falling in love with the stocks or industries I’m trading, and always migrating to where the price action is best. And up until mid-October, the cannabis industry offered two months of picture-perfect price momentum.  

But over the past week or so, that’s begun to change.    

Most cannabis stocks have broken beneath their short and intermediate timeframe moving averages, suggesting that a period of consolidation and base building is needed before they can re-test their recent highs.

So, if you’ve been actively trading cannabis stocks because that’s where the momentum and growth have been since mid-August, then clearly you should be back on the sidelines.  

But what about the true believers?  

I’m thinking about the long-term cannabis investor that believes we’re in the early innings of what the cannabis sector will ultimately evolve into.  

If you view the cannabis sector through a multiyear lens, take heart in the fact that every successful secular growth story has endured bumps and bruises along the way to success. And the medical and recreational cannabis movement will be no different.

Calmer waters

In the two months leading up to the full legalization of recreational cannabis in Canada, stocks like Aphria (OTCBB: APHQF), Pyxus (NYSE: PYX), Canopy Growth (NYSE: CGC), and CannaRoyalty (OTCBB: ORHOF) rallied between 50% and 110%.  

Now, as frustrating as it may be for investors that were late to the party, it’s important to remember that stocks don’t go up or down. They go up and down.  

The bullish price action that surrounded the cannabis sector leading up to October 17, 2018, was initiated by investors, but then goosed and kicked into high-gear by momentum traders. And as momentum faded, so too did the traders that aggressively bid up the stocks.  

But strong momentum doesn’t have to be followed by an epic price collapse. Often, when momentum fades, stocks consolidate within an uncomfortably wide range until a new, more natural market is established. And that’s what is beginning to take shape today.  

The path forward

Short-term traders should remain on the sidelines, but continue to monitor the cannabis space for stabilization, base formations, and the eventual resumption of prior bull trends. But again, until price action improves, there’s no reason for you to be aggressively buying stock.  

Long-term investors, however, should be poring over their wish list and identifying companies that have been unfairly punished with the sector-wide rout. Ideally, you want to identify companies with scale, access to capital, and strong management teams. Companies like KushCo (OTCBB: KSHB), GrowGeneration (OTCBB: GRWG), iAnthus Capital Holdings (OTCBB: ITHUF), and Pyxus International (NYSE: PYX) are all names that fit this mold.    

The bottom line is much like we saw with the internet in the late 1990s and early 2000s, many of today’s cannabis companies will vanish or be gobbled up by larger operators over the next few years. And that means we need to vigilant when it comes to our risk management with short-term trades, and thoughtful and research focused when it comes longer term investments.  

Be opportunistic  

While many cannabis stocks have violated their short-term up trends and need time to heal, I do not believe we’ve seen a bursting or abandonment of the cannabis theme. And as new catalysts such as banking reform, more states legalizing the medical and recreational use of marijuana, traditional Wall Street firms begin issuing research, and positive data or opinions from the FDA on the benefits of CBD reach the light of day, we’ll likely see buyers return to the space in spades.  

Trusting that we’re in the early innings of the Green Revolution means long-term investors should wait for stocks on their shopping list to be knocked down by sector-wide selling before putting money to work. So, when hyped-up and over-publicized catalysts like the legalization of recreational cannabis in Canada playout and stocks come under pressure, don’t be afraid to lurk deep under the market and place opportunistic bids as the short-term momentum traders punch out and run for the hills.

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Thu, 25 Oct 2018 14:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/207878/pot-stocks-a-pause-in-the-bull-trend-or-a-bursting-of-the-bubble-207878.html