December 4, 2018 / 2:22 PM / 11 days ago

Cannabis producer Aphria backs its Latam operations

Sample jars of British Columbia-grown cannabis brand Broken Coast are displayed at a party held by supplier Aphria, the day before Canada's legalization of recreational marijuana in Toronto, Ontario, Canada October 16, 2018. REUTERS/Chris Helgren

(Reuters) - Canadian cannabis producer Aphria Inc (APHA.TO) on Tuesday defended its Latin American operations from claims in an analyst report that the company had overpaid for assets which were now being poorly managed and were losing it money.

The report, published by Hindenburg Research and short seller Quintessential Capital Management, and outlined in a presentation on Quintessential’s website, helped weaken the company’s shares by as much as 30 percent on Monday.

Aphria said it “unequivocally” stands behind its operations in the region, including its acquisition of Latam Holdings Inc, going on to list its financial advisors on the deals and saying it had paid a price that was comparable to other industry deals.

U.S.-listed shares of Aphria (APHA.N) were down about 16 percent before the opening bell.

Reporting by Debroop Roy in Bengaluru; Editing by Derek Francis

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