💙 🔷 Not impressed by Big Tech in Q3? Explore these Blue Chip Bargains insteadExplore for free

Canadian marijuana producer Aphria's CEO to step down

Published 2019-01-11, 03:46 p/m
© Reuters.  Canadian marijuana producer Aphria's CEO to step down
WEED
-
APHA
-
TLRY
-

Jan 11 (Reuters) - Canadian pot producer Aphria Inc 's APHA.TO co-founder and Chief Executive Officer Vic Neufeld is stepping down, at a time the company is facing questions about its deals in Latin America and a recent slump in its shares.

The company also said its marijuana sales nearly doubled in the second quarter driving overall revenue to C$21.7 million ($16.4 million) from C$8.5 million a year earlier, sending its shares up 6 percent.

The stock tumbled about 30 percent on Dec. 3 following a report by short-seller Hindenburg Research, which alleged the company had diverted more than C$700 million to undisclosed beneficiaries through some deals in Latin America. the report, Aphria formed a special committee of independent directors to review its Latin American deals.

"I can confirm that this special committee is making good progress, assisted by independent advisors, and intends to fully address short-seller allegations," Neufeld said on a post-earnings call with analysts.

The company did not give a date for Neufeld's exit from his role. The company's co-founder, Cole Cacciavillani, would also leave his post as vice president of Growing Operations.

"Cole and I have informed the Board, and they have agreed that we will begin the transition process immediately, and at the appropriate time, we will both step down from executive positions at Aphria," Neufeld said.

Like rivals Canopy Growth Corp WEED.TO and Tilray Inc TLRY.O , Aphria has been investing heavily to expand its footprint in international markets including Europe and Latin America.

The company signed a deal with German pharmaceutical company CC Pharma in November and entered into agreements to grow and sell pot in Colombia, Argentina and Jamaica last month.

Canada legalized recreational marijuana in October, and the sector is expected to get a boost as many other countries move closer to legalization.

Aphria's net income jumped eightfold to C$54.8 million during the quarter.

The company's shares were trading at C$9.25 on the Toronto Stock Exchange.

($1 = 1.3201 Canadian dollars)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.