Aphria Chairman: 'Short-Seller Report Was A Wake-Up Call'
Aphria expects to increase its revenue by about fivefold by the end of 2020 from an estimated CA$209 million as of the end of May 2019, Simon told Bloomberg's Kristine Owram. The company expects to take advantage of the "low-hanging fruit" in the Canadian business, he said. The multiple opportunities in the Canadian cannabis market are expected to help the company generate a profit and achieve margins of at least 40 percent.
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Short-Seller Report A 'Wake-Up Call'
Simon became chairman in late December and shortly afterward became interim CEO following the release of a short-seller report. Quintessential Capital argued Aphria that is a top short idea — a thesis Simon said marked a "wake-up call" for the company.
The report prompted Aphria to take a more active role in telling the investment community "all the great things we're doing," he said.
"It's time to change the conversation."
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The offer comes at a time when Aphria is "wounded" and vulnerable to other companies looking to "take advantage," Simon said.
"Shareholders are not going to accept it."
Aphria's stock was down 3.78 percent at $9.28 at the time of publication Wednesday.
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