Publicly-traded Cannabis Industry Companies

[G8RDPM]

Cautiously optimistic!
Thank you,M for keeping us updated. Very appreciated!

[Amplifiednation]

Hoping for a green day tomorrow!!

[superdog]

Originally Posted by Amplifiednation

Hoping for a green day tomorrow!!

Me too!!!

[littleolemoi]

Originally Posted by superdog

Yes!!!!!!


After today, I am thrilled for the good news.

Those brokers invested in this sector may had this kind of reaction??

Hoping for a good day tomorrow!!



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[superdog]

Originally Posted by littleolemoi

Those brokers invested in this sector may had this kind of reaction??

Hoping for a good day tomorrow!!



Sent from my SM-G955U using Tapatalk

Lmao. Seriously.

[Flyinghunter]

Good luck for the silver lining tomorrow. Really.

Unfortunately, Dow futures are down 161 as I type this. Expecting a choppy and down day tomorrow. China has a announce $3B in tariff retaliation this evening.

[Baco Noir]

Feeling better now since my limit order for Aphria got executed this AM with the initial drop.

[Mick8moses]

I dropped almost all my Aphria and to be honest I'm glad - it was giving me agita.

Having purchased most of my MJ stocks at the worst time ever in January, I am happy to see how Canopy & Hydropothecary have rebounded.
Now that I have some cash back I'll probably wait for some down days to strengthen my position and average myself down in these two and hope to make back some of my Aphria losses.

[mcorliss]

Originally Posted by Mick8moses

I dropped almost all my Aphria and to be honest I'm glad - it was giving me agita.

Having purchased most of my MJ stocks at the worst time ever in January, I am happy to see how Canopy & Hydropothecary have rebounded.
Now that I have some cash back I'll probably wait for some down days to strengthen my position and average myself down in these two and hope to make back some of my Aphria losses.

I too am going to wait things out for a down day or two, but will probably come back in with Canopy, Hydropothecary, or Emerald Health Therapeutics. Such a damn shame on Aphria. Feel like I can’t completely trust their capital structure. I like their business model (greenhouse grower/low cost producer), but just can’t get comfortable again with who is potentially backing the company.

[superdog]

Aphria is my horse at this point.

I’m hoping for big things.

With the history of wealth, and how it was built in the US, and around the world, I’ve got no moral concerns with who their backers are.

It is by far what I’m heaviest in, and I’m good with that. As Ive already mentioned, the entire industry has hazy (pun intended) beginnings.

I’m sticking (pun intended) to my original assessment. I’m holding for at least a year from my original investment.

With the rampant corruption at every level of Wall Street, Main Street, and a place we’re not permitted to discuss, this is a walk in a field of grass (pun intended).

[Gaijin]

I agree Seth. Having moral outrage over this when sketchiness is sadly the new way of doing so many things big business , Wall Street and as you said other things best not discussed. Bought. I’m holding. I don’t have to like it.


There are so many things that I won’t invest in based on principles. Cannabis isn’t one of them. I bought Aphria and I’m seeing it through.

[Baco Noir]

Originally Posted by mcorliss

I too am going to wait things out for a down day or two, but will probably come back in with Canopy, Hydropothecary, or Emerald Health Therapeutics. Such a damn shame on Aphria. Feel like I can’t completely trust their capital structure. I like their business model (greenhouse grower/low cost producer), but just can’t get comfortable again with who is potentially backing the company.

What did I miss on Aphria? Looked for news on Fidelity and didn’t see anything recent and negative.

[Mick8moses]

Originally Posted by Gaijin

I agree Seth. Having moral outrage over this when sketchiness is sadly the new way of doing so many things big business , Wall Street and as you said other things best not discussed. Bought. I’m holding. I don’t have to like it.


There are so many things that I won’t invest in based on principles. Cannabis isn’t one of them. I bought Aphria and I’m seeing it through.

I don't really have any moral issues with aphria I still have a couple hundred shares that I'll leave alone for now. It's more about my short term memory. Many of us jumped in this market in January. The worst month to buy certainly. But I look at my shares of canopy and hydro - they've slowly climbed back within 5% of their highs in January. Aphria, Aurora, Canntrust just haven't. They're still down 25+%.
I look 8 months from now to legalization and believe canopy will be on NASDAQ at significantly over $30/share. Hydro I'm expecting will be over $5. Aphria? I'm just not sure. Will it be over $20? - maybe, and if it is great, I still have a modest play.
I had most of my investment tied up in aphria and canopy. From looking at the last few months, I believe I would do better moving the bulk of my aphria bet to what appears to me to be the faster horse - even if it costs me a bit.


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[mcorliss]

Can somebody with a subscription to the The Globe and Mail please post the article about Aphria in today’s paper? Thank you!

[Mosco]

“Aphria insiders held shares in takeover target, didn’t disclose

Four executives and three other directors of Aphria Inc. personally owned shares in Nuuvera Inc. at the time they orchestrated a takeover deal for the cannabis firm, but didn't disclose their holdings to investors and later voted to approve the transaction at a board meeting.

The executives included Aphria chair and chief executive officer Vic Neufeld, as well as the company's chief financial officer, Carl Merton, Mr. Neufeld said. The company says the investments were not large enough to require disclosure.

Aphria agreed to buy Nuuvera for $826-million in late January, only three weeks after Nuuvera went public on the TSX Venture Exchange.

Aphria offered $8.50 per Nuuvera share it didn't already own in mostly stock and some cash. In February, as marijuana stocks fell after a rally and Aphria took a closer look at Nuuvera's assets, Aphria slashed the cash portion of the deal to 60 cents a share from $1.

The pair revised the terms again last week, hiking the cash offer to 62 cents. The deal for about $425-million closed Friday.

The transaction left the seven Aphria insiders with a multimillion-dollar windfall.

Last August, they acquired a total of 900,000 shares in Nuuvera for $1 each, The Globe and Mail has learned. Nuuvera, which was still private at the time and raising money to fuel its growth, sold 4 million shares in that round of financing.

Aphria itself also participated in the offering, buying 2 million shares, according to regulatory filings. (Last November, Aphria said it upped its stake in Nuuvera by another 2 million shares for $2.50 apiece.)

At Friday's closing price, the deal turned that $900,000 investment into about $4.75-million for the Aphria insiders in the space of about seven months.

The 900,000 shares in Nuuvera are owned by Mr. Neufeld, Mr. Merton, Aphria director and vice-president of infrastructure and technology John Cervini, director and vice-president of growing operations Cole Cacciavillani, and three other directors, an Aphria spokesperson confirmed on Friday. Their holdings represented 0.9 per cent of Nuuvera stock on a fully diluted basis.

Aphria is one of Canada's largest legal pot producers, with a market cap of $2.3-billion. Nuuvera, in contrast, is much smaller and less developed.

An earlier partnership with Aphria helped fuel the growth in Nuuvera's valuation and raise its profile. Last August, in addition to investing in Nuuvera, Aphria said that it agreed to supply the company with 17,000 kilograms of marijuana a year. Aphria also announced a deal to sell Nuuvera some of its land in Leamington, Ont., where it is based, as well as agreed to help design, build and run the facility Nuuvera planned to construct on that land. In January, Aphria said it would supply Nuuvera with another 60,000 kg of cannabis annually.

In addition, Nuuvera owns another company that has applied for a licence to grow cannabis in Canada and is pushing into new markets such as Germany. It also owns another business that is licensed to handle and test controlled substances on behalf of third parties.

The personal investments of Aphria insiders in Nuuvera weren't previously disclosed in regulatory filings or on Canada's System for Electronic Disclosure by Insiders (SEDI), which tracks the trading activity of company insiders. Whether Aphria should have informed its investors depends on how material the information is – and companies have a lot of latitude in determining materiality.

"There is no requirement to disclose this information," Andrew Schwartz, a spokesperson for Aphria, said on Friday. "The investments are immaterial to Nuuvera and to the individuals who made the investments."

This news comes days after a U.S. short-seller raised questions about the deal in a research report, writing that Nuuvera's business doesn't really amount to much and that Aphria paid a hefty amount for it.

Mr. Schwartz said that the Aphria insiders have held their Nuuvera stock in escrow, adding that they were restricted from selling their shares in the market. As part of the acquisition, that Nuuvera stock will be converted into Aphria shares, which will boost the insiders' holdings in the marijuana grower. The new Aphria shares will be disclosed and subject to blackout trading restrictions. "The board was aware of the shareholding of certain directors and management members," Mr. Schwartz said. Aphria has seven board members, according to its website – and six directors personally owned shares in Nuuvera.

Mr. Schwartz added that in considering the Nuuvera deal, the board appointed a special committee of independent directors, and management pitched the rationale for the purchase to them.

The special committee received a fairness opinion from Cormark Securities Inc. and financial advice from Stoic Advisory Inc., a small Toronto advisory firm that focuses on the cannabis sector. Legal advice came from Stikeman Elliott LLP.

The special committee unanimously approved a recommendation to proceed with the transaction to the board for a final vote, according to Mr. Schwartz. He said the personal investments in Nuuvera didn't warrant any recusals.

"The board received the special committee's unanimous recommendation and approved the deal while aware of the immaterial investments, which did not warrant any recusal," Mr. Schwartz added.

Even though the four Aphria executives have much larger stakes in Aphria than they did Nuuvera, their undisclosed personal stakes in Nuuvera raise questions around the potential for conflicts of interest.

Conflicts arise when a director or officer has a material interest in another company entering into a material transaction with their company, per the Ontario Business Corporation Act. It says that these conflicted company insiders should neither attend any part of a board meeting when the transaction is being discussed nor should they vote on the deal.

The seven Aphria insiders participated in Nuuvera's third private placement after its so-called founders round. By then, more than 70 million shares had already been issued. As of Friday, the company had more than 80 million shares outstanding, excluding those tied to warrants and options.

Aphria says it wasn't its place to disclose the investments of its executives and directors. "The disclosure of the board members and the executives who participated in the private placement is not our disclosure to make," Mr. Schwartz said.

An e-mail on Sunday to Mr. Neufeld, Mr. Cervini, Mr. Cacciavillani and Mr. Merton requesting comment wasn't immediately returned.

During a coincidental encounter on Friday morning in the lobby of the Shangri-la Hotel in Toronto, Mr. Neufeld told The Globe and Mail that he didn't think it was necessary to inform investors that he and other Aphria insiders personally own Nuuvera stock. "Totally immaterial," he said. "It's not a story. It's nothing."

[Mr. Nice Watch]

Is this as much of a non-story as Mr. Neufeld makes it out to be? Aphria is down again this morning. Would it seem that it may again be safe to jump back in?

[mcorliss]

Seems to me to be a foolish violation of trust for barely any real monetary gain. It is troubling, but my biggest concern is their relationship with Delavaco Capital and who their source of bought deal funding is. At some point, it will become a buy again, but as much as I loved the operational model, I can get past the lack of trust I started feeling. Most cannabis companies are probably in a similar situation, but let’s see how this one shakes out and what type of ripple effect it has throughtout the industry.

[520Matt]

In my opinion these guys (Aphria) bought a shell company (NUUVERA) to enrich themselves and/or someone else. I took a decent loss on Aphria but blew out my position last week after reading the Seeking Alpha article. Shell companies and the Canadian market have been synonymous for years. The Cannabis sector is making it ripe for this type of "stuff" to go on. It's a shame. Still holding Cronos (trading on Nasdaq) so hopefully held to a higher standard and Hrydopothecary.

Keep us in the loop Mcorliss.

thanks

[bing240sx]

i have read and am up to speed on all this with APH but to me it is really starting to represent a good buying opportunity. Canopy has bumped up significantly from its lows a few weeks back. from around $23 (CDN) to $34. Whereas, APH, likely due in part to the issues of concern to McCorliss, has not increased at all.

i considered dropping some IMH/GENE to enter APH since its relatively up these last weeks and APH is down. Probably wont but if APH keeps dropping it will be a sure buy.

Not discounting your concerns but they are very compelling operationally and this is not a purely rational market. The next run is going to be a lot of fun.

[Amplifiednation]

Vic speaks out...good stuff...OSC agrees. I bought at sub $10 yesterday. Averaged down big time with not a lot of cash.

http://windsorstar.com/news/local-ne...is-company-ceo

[Amplifiednation]

Also...

https://aphria.ca/blog/aphria-launch...de-operations/

[Dr.LJ]

Any ideas of what happened to THCX today?

[Gaijin]

I’m down about 26%. Painful. I’m going to see this through to legalization and beyond a bit..

[bing240sx]

salivating. still well up even though things are leaking right now.

This happened last year as well and lasted all through the summer. it's difficult to say if and how far ahead of legalization these will begin running again but oh my goodness i love seeing some of these great names dropping when they already have ramping revenues and big government contracts that havent produced any money yet.

APH is looking the best to me right now but i guess it could keep dropping. HVT is another that has corrected back pretty heavily. Well the all have, but it's a quality name.

EMC is breaking all time lows as well.

CMM, now aleafia, resumed trading and is showing a 170% gain for me. I should probably sell some and move into others but i'm going way long on this stuff.

if you note my continued enthusiasm you should also note that i'm down $80k in the last 2 months and it doesn't bother me one bit :)

[Mosco]

All I know is Vic better go on the air and deliver some news, otherwise APH will continue the bleed. Just like FB’s news has affected tech sector broadly, APH’s perceived poor judgment has caused lack of investor comfort throughout the entire weed sector. Otherwise, i just don’t see the reason for the sell-off we are seeing, perhaps I’m overlooking something.

[mcorliss]

I was very concerned about the Aphria Nuuvera insider situation, and particularly their association with Delavaco Capital, but at these price levels, I just bought 50k shares at $9.50. Wish I had waited about an hour longer though. The risk reward tradeoff is pretty compelling at these prices again, so I’m back in for about a 1/3 of my max potential position size.

We’ll see how things go from here. Suspect next week will be much better for the cannabis sector, and I believe most of the heat is off of Aphria at this point.

[Mick8moses]

I picked up more Hydropothecary today. I can't keep away for under $3.

[bing240sx]

Originally Posted by mcorliss

I was very concerned about the Aphria Nuuvera insider situation, and particularly their association with Delavaco Capital, but at these price levels, I just bought 50k shares at $9.50. Wish I had waited about an hour longer though. The risk reward tradeoff is pretty compelling at these prices again, so I’m back in for about a 1/3 of my max potential position size.

We’ll see how things go from here. Suspect next week will be much better for the cannabis sector, and I believe most of the heat is off of Aphria at this point.

last year things didnt start to turn around until October.

if you remove the Dec /Jan bull run most stocks are still steadily up from this time last year.

hard to tell when the rebound will occur. I would imagine it will be much sooner than October this next time around.

[Flyinghunter]

Originally Posted by Mosco

Otherwise, i just don’t see the reason for the sell-off we are seeing, perhaps I’m overlooking something.

Many see that we are nearing the end of the cyclical bull market. The average Bull market last around 9 years and we have been in this one a little over 9 years. If the Bear market takes hold it will depress all sectors.

[mcorliss]

Originally Posted by bing240sx

last year things didnt start to turn around until October.

if you remove the Dec /Jan bull run most stocks are still steadily up from this time last year.

hard to tell when the rebound will occur. I would imagine it will be much sooner than October this next time around.

Totally agree. I am also becoming more bullish on Aphria once again, especially at these unreal price levels. Bought another 30k shares today at $8.95. Nice way to average my cost basis down to around $9.28/share.

It’s becoming more obvious to me now that Aphria is getting extremely biased negative coverage by Christina Peregrine at The Globe and Mail. Clearly, she has an axe to grind by relying so heavily on the negative research report about Aphria’s acquisition of Nuuvera written by the CEO of the U.S. hedge fund ClaritySpring, who acknowledged being short Nuuvera shares at the end of his BS report.

It’s amazing how these despicable Hedge Fund guys seem to purposefully tip the scales in their favor when they know investor sentiment is getting tired and vulnerable after the stock has already begun sliding lower. Please understand, Aphria is NOT going to zero, and this is clearly a decent opportunity to stretch your legs into some lower priced shares.

After getting scared out of it around $10.85, I’ve found plenty of evidence to allay my initial fears. Personally, I’m now actively continuing to leg into it while it fades lower. Eventually, the shorts will be forced to cover their positions, and that will surely cause the type of violent upwards surge on the stock price that we all want to see. Let’s just hope it is sooner than later!