The worst may be over for a Leamington, Ontario–based pot company.
Today, shares in Aphria Inc. were up 51 percent, closing at $7.55. The large jump came on heavy volume, with 42.8 million shares trading in Toronto.
The rise in Aphria shares comes several days after a short seller called the company a "Black Hole"—claiming that Aphria grossly overpaid LATAM Holdings Inc. for cannabis licences in Colombia, Argentina, and Jamaica.
On December 4, Aphria responded with a statement denying allegations that company insiders were the biggest beneficiaries of the $300-million transaction.
Today, Aphria followed up by forming a special committee of independent directors—John M. Herhalt, Shlomo Bibas, and Tom Loomey—to review the purchase of LATAM Holdings, which closed on September 27.
“We are committed to protecting our shareholders and restoring market confidence by confirming all the facts through an independent process to rebut innuendo and deception," Aphria CEO Vic Neufeld said in a statement. "Until then, it is business as usual at Aphria, as we continue taking significant steps to solidify our position as a premier global cannabis company.”