Canadian Cannabis Producer Aphria (APHA) on Friday said CEO Vic Neufeld will go out in the coming months, a decision management insisted had nothing to do with claims of self-handling by two card sellers month. Aphria layers and other marijuana layers jumped, especially Tilray (TLRY).
Tilray increased after Privateer Holdings, which controls the company, stated that the range of Tilray shares will remain limited, in
Aphria CEO Vic Neufeld Steps Down
CEO Vic Neufeld plans to resign while co-chairman and co-founder Cole Cacciavillani will also move away from his executive role. But both will remain on the company's board. During a conference call to discuss the Aphria revenues for the second quarter, the management said no committee had been set up to monitor the transition.
Both Neufeld and Irwin Simon, who replaced Neufeld as chairman last month, said that the move had "nothing" to do with the allegations of the short selling points, Hindenburg Research and Quintessential Capital, or a subsequent review by a special committee.
"It was a matter of time," adolf's CEO Vic Neufeld said during the call.
In a statement released earlier this day, Neufeld said: "Building and managing a company like Aphria, which exploded from an idea at the end of 2013 to our many successes so far, has been an incredible journey, despite the customs having taken health , family and personal priorities. "
The caccia villa echoed that feeling. "Endless meetings, travel, deadlines, talent search – the list of executive responsibilities will only continue to grow," he said in the statement.
Aphria Short-Seller Drama
Card vendor Quintessential Capital and Hindenburg Research last month accused Aphria of overpayment for virtually useless properties in Latin America and the Caribbean attempting to gently enrich the insiders. The card vendors claimed that Aphria's purchases were organized by shell companies to cover their tracks. The Aphria warehouse crashed after the report's publications.
The card sellers said the purchased assets included a farm in Jamaica and a dispenser that they could not find. Aphria called the allegations "false and insulting" and said the companies were either licensed or operational.
The company commissioned the Special Committee to review the transactions. CEO Vic Neufeld promised a line-by-line contradiction to the charges. But the company delayed it pending the committee's review.
It was unclear when this review could end. When asked on Friday to clarify whether the public could expect the review to end within days, weeks or months, Neufeld said, "It's not days, but it takes a little longer than that."
Green growth bid for Aphria  The drama was escalated no later than the month when Aphria rejected a takeover bid from an American company called Green Growth Brands. Aphria, at that time, said the offer "substantially undervalued" the company. Hindenburg questioned Green Growth's band to Aphria.
The green growth later said that "it is not a relative of Aphria" and that Aphria did not see any part of Green Growth.
"As those who participate in the small but growing cannabis industry know that there are many overlapping informal relationships between participants," says Green Growth.
Reporters from Bloomberg, in a story published on Saturday, confirmed the farm and the affair. The store's display cases and shelves were empty. Quintessential told the outlet as it stood at its research.
Quintessential, on Friday tweeted that the executive change message "clearly claims our brief thesis."
"With a new management team, the company a chance to brighten the future and we therefore move on to new projects, says Quintessential.
Aphria revenue increased by 63% to 21.7 million Canadian dollars. Adjusted profit from Aphria jumped 10.16 million Canadian dollars from 5.76 million a year earlier. Estimates were unavailable from Zacks.
Average sales price, including excise duty, fell to 6.54 Canadian dollars per gram in the quarter compared to 7.12 Canadian dollars logged in the previous quarter.
Royal equivalents sold increased 92% Q1. The "All-In" cost of goods sold increased to 2.60 Canadian dollars per gram from 1.83 in the previous quarter.
Adjusted gross margin fell to 47% from 64% during the quarter due to lower effective sales prices in the adult market. Temporarily reduced yields were also weighed. Thus, production costs increased in connection with the plant's expansion and implementation of automation.
Aphria sees new production facilities that generate sales later in the calendar year, pending approval by Health Canada, which increases the annual harvest to 255,000 kilos. It compares to 35,000 kilos currently at the end of the 2019 calendar.
Aprhia Stocks, Tilray Stocks, Other Marijuana Stocks
The Aphria share jumped 7.9% in the morning stock market trading. Aphria started trading on the NYSE November 2 and is still listed in Canada.
Tilray stock jumped 23% early. Privateer Holdings said it had no plans to sell 75 million shares when Tilray IPO split the lockout expires next week. Tilray stock is the first and only pure American IPO by a marijuana producer.
Among other marijuana layers, Cronos Group (CRON) and Canopy Growth (CGC) increased about 5%. Aurora Cannabis (ACB) jumped 7.4%.
The US listed Canadian marijuana stocks have fallen since recreational licensing began in Canada.
Newest marijuana shares: A shoe store?
Green Growth Brands said it had collaborated with the shoe store chain DSW (DSW) to sell hemp-derived CBD personal care products in 96 DSW stores in the United States.
The products, which will be sold under the Seventh Sense Botanical Therapy brand, include muscle balm, foot creams, lotions and body wash, Green Growth said. Green growth is supported by the Schottenstein family, who made their money in retail. The family is also an investor in DSW. Jay Schottenstein is the CEO of DSW and is also the CEO of American Eagle Outfitters (AEO).
Their debut would follow President Donald Trump's signing of the 2018 Agricultural Bill, which legalized the industry. But the hemp rules differ from area to area. The FDA also still has regulatory authority over products containing cannabis or derivative compounds, the agency said last month.
"We have seen recent shifts in consumer behavior accelerate retail changes," said Roger Rawlins, CEO of DSW. in a statement.
"North America's widespread adoption of the use of CBD products is one of the best examples of these shifts and we could not be more pleased with our partnership with Green Growth Brands and the introduction of their products to our
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