Aphria shares plunge

Aphria shares plunge

Shares of Aphria Inc. lost more than a quarter of their value in early trading following a report by a short seller.

Aphria shares were down 2.84 or about 27 per cent at $7.67 in heaving trading on the Toronto Stock Exchange.

The report by Quintessential Capital Management alleged Aphria has acquired foreign companies at inflated prices in ways that it believes benefit a group of insiders.

Aphria called the allegations false and defamatory.

It says it is preparing a comprehensive response to provide shareholders with the facts and is also pursuing all available legal options.

Quintessential says it is short on Aphria. By selling shares short, an investor makes money when the price of a company’s shares fall.

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