(Adds details from Exchange Income statement, share reaction)
By Jennifer Ablan and Alastair Sharp
NEW YORK/TORONTO, July 5 (Reuters) - Short seller Marc Cohodes, who has famously bet against the shares of six Canadian-based companies including Valeant Pharmaceuticals International Inc (NYSE:VRX) VRX.TO and Home Capital Group Inc HCG.TO , said on Wednesday that he is targeting yet another Canadian firm - Exchange Income Corp EIF.TO .
Cohodes told Reuters that Exchange Income - a Winnipeg-based company focused on opportunities in aerospace and aviation services and equipment, and manufacturing - does not generate enough cash to pay the juicy dividend it provides investors.
Exchange Income Corp said in a statement that the report is based on a number of statements, assumptions and opinions with which "we strenuously disagree." said it has maintained a consistent strategy since its inception in 2004, enabling it to grow profitably and return a reliable and growing dividend to our shareholders.
"Nothing has changed," the company said, adding that since 2004 it has paid shareholders C$300 million in dividends while maintaining a strong balance sheet with limited leverage.
Exchange Income Corp shares fell as much as 10 percent to C$29.38 soon after the Reuters report, but pared losses and were down 7.5 percent in morning trade.
The company had a market value of around $1 billion by Tuesday's close.
Cohodes, who worked at a short-selling hedge fund but now raises chickens in California and invests his own money, has targeted Valeant, Intertain Group Ltd ITX.TO , Concordia International Corp CXR.TO , Home Capital, Equitable Group Inc EQB.TO and Badger Daylighting Ltd BAD.TO .
Cohodes told Reuters last month that he is keeping his short position on the Canadian lender Home Capital despite a capital infusion from Warren Buffett's Berkshire Hathaway (NYSE:BRKa) Inc BRKa.N November, Exchange Income announced that for the fourth time in the last 24 months, the company was increasing its dividend to an annualized rate of C$2.10, up 4.5 percent. Yet over the last five years, the company has increased its debt load by C$427 million and issued over C$230 million of shares to fund its C$700 million deficit, Cohodes said.