A Florida-based operator of cannabis assets is at the center of the marijuana industry’s latest short seller attack.
On Tuesday (December 17), a short seller group called Grizzly Research issued a report targeting Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF). It led to a double-digit drop in value for the US company.
In a statement issued on Tuesday, the management team of Trulieve asked investors to recognize that this was an attempt to alter its share price by the short researchers.
“It appears today’s report is a disingenuous attempt to manipulate Trulieve’s stock price,” Trulieve said.
Kim Rivers, CEO of the American operator, said the company is prepared to take legal action against the people behind this report.
— Kim Rivers (@rivers_kim) December 17, 2019
In its report, Grizzly Research questions the methods by which Trulieve has secured financing from lenders. The report even alleges that the company represents a fraud case.
The short sellers have taken particular issue with connections between Rivers’ husband John “J.T.” Burnette and an ongoing investigation regarding an FBI corruption case in Florida.
According to a recent report from the Tallahassee Democrat, new evidence in the case prompted Burnette’s attorneys to continue the trial for at least two months.
According to the Investment Industry Regulatory Organization of Canada, shares of Trulieve faced a halt on the Canadian Securities Exchange in the early part of the trading session on Tuesday. It lasted less than 10 minutes.
Trulieve is the leading seller of medical cannabis in the Florida market. The company has also become a darling of the marijuana capital markets thanks to its performance and quarterly results.
Shares of the company currently maintain a “strong buy” recommendation on analyst aggregator site TipRanks, based on five stock ratings.
The marijuana capital market has had to contend with notorious short seller attacks by way of public reports calling on stocks to fall or even bottom out.
In one of the most infamous cases of a targeted cannabis short seller attack, this year a joint report from two bearish research firms, Quintessential Capital Management and Hindenburg Research, produced a tumult of volatility for Canadian producer Aphria (NYSE:APHA,TSX:APHA).
During the 2019 edition of the Lift & Co. (TSXV:LIFT,OTCQB:LFCOF) Cannabis Business Conference in Vancouver, British Columbia, one analyst said short sellers have become attracted to the cannabis industry given its rapid rise in attention.
“It’s got probably a bit higher profile as far as opportunities for short sellers to target a particular company,” Neal Gilmer, an analyst with Haywood Securities, said at the time.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
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CanBud Distribution Corporation Closes 2M Second and Final Tranche of its Oversubscribed Private Placement Offering
CanBud Distribution Corporation (CSE: CBDX) (FSE: CD0) (“CanBud” or the “Corporation”) is pleased to announce that it has closed the final tranche of its oversubscribed non-brokered private placement for aggregate gross proceeds of approximately $4,730,000 (the “Offering”).
The Corporation issued a combined total of 39,409,346 units (each a “Unit“) at price of $0.12 per Unit, with each Unit comprised of one common share in the capital of the Corporation (each a “Common Share“) and one common share purchase warrant (each a “Warrant“). Each Warrant entitles the holder to purchase one additional Common Share at an exercise price of $0.22 within 24 months of the closing of the Offering (the “Warrant Term“), provided, however that if the closing price of the Common Shares on the Canadian Securities Exchange (the “CSE“) (or any such other stock exchange in Canada as the Common Shares may trade at the applicable time) is $0.25 or greater per Common Share for a period of five (5) consecutive trading days at any time after the closing date of the Offering, the Corporation may accelerate the Warrant Term such that the Warrants shall expire on the date which is 30 days following the date a press release is issued by the Corporation announcing the reduced warrant terms.
Thoughtful Brands Inc. (CSE:TBI)(FSE:1WZ1)(OTCQB:PEMTF) (the “Company” or “Thoughtful Brands) announces that the letter of intent with Franchise Cannabis Corp. (“FCC”), previously announced in January, has been terminated. The previously announced European joint venture with FCC will continue and allow the Company to launch and tailor its products to European consumer demands
In connection with termination of the merger transaction with FCC, the Company has agreed to pay FCC $100,000 in cash and to issue FCC 5,000,000 common shares of the Company at a deemed value of $0.05 per share. The common shares will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws.
Mergers and acquisitions (M&A) in cannabis space have helped boost the industry to new levels.
Strategic sale of non-core assets by Lobe adds non-dilutive capital and shareholder value
Lobe Sciences Ltd. (CSE: LOBE) (OTC Pink: GTSIF) (“Lobe” or the “Company”) is pleased to announce, further to its press release dated February 23, 2021, that it has completed the sale to Ionic Brands Corp. (“Ionic Brands”) of Lobe’s non-core cannabis assets relating to Washington-based Cowlitz County Cannabis Cultivation Inc. (“Cowlitz”) held by Lobe’s subsidiary vendor, Green Star Biosciences Inc. (the “Transaction”).
Seattle Area Grocery Chain Metropolitan Market to Begin Carrying KOIOS and Fit Soda on March 22, 2021
Adding to its existing presence on the west coast of the United States, all five KOIOS™ flavours and all four Fit Soda™ flavours will be carried in Metropolitan Market stores beginning on Monday, March 22, 2021. Serving the Seattle-Tacoma area (population 3.87 million), Metropolitan Market is one of five chains under its parent firm Good Food Holdings, which has a total of 51 stores in California, Oregon, and Washington State.
Koios Beverage Corp. (CSE: KBEV; OTC: KBEVF) (the “Company” or “Koios”) is pleased to announce that beginning on Monday, March 22, 2021, Koios’ entire line of canned beverage products will be sold at all locations of Metropolitan Market, an urban format supermarket chain in the Seattle-Tacoma area of Washington State. In Q1 2021, the Company announced multiple placements of its beverage products with regional grocers in markets on the west coast of the United States including Market of Choice in Oregon Jensen’s in Southern California and major natural grocery chain Sprouts Farmers Market which has a substantial west coast presence with over one third of its locations (360+ stores across 23 states) in California as well as Washington State 1 . The Company has also recently announced other developments relating to its expansion efforts being undertaken in 2021 such as an in-house beverage canning facility and distribution agreements with regional and national wholesale partners.