Aphria Inc (fka APHA)

[JohnCM]

Liberty Health Sciences - QCM's/Hindenberg Latest Attack debunking

Reddit
Posted byu/asianforsale
3 hours ago

Discussion

I was reading Hindenberg's latest attach on Aphria and was trying to figure out how best to layout what they were trying to say. The article is written so poorly that it is purposely designed to confuse investors. From what i can see, the biggest argument made was

The 242million shares of Liberty at .001 shares that they stated in their summary.

Unnamed individuals bought 242 million shares of Liberty in a highly dilutive $0.001 private placement mere days after Aphria announced its intention to purchase its shares at 208x the price.

https://imgur.com/er6KRqD

Simple Answer: Those were previously held shares by Holdco and had to be accounted for. So they accounted them at .001 for the merger of securecom and holdco.

Hindenberg didn't even use the right company data! If you look at their article, the second line of the picture (pic included and highlighted) where they showed 242M shares sold at .001, that was shares of HOLDCO. Now i would detailed explain this but the quickest way to explain it is that's accounting for existing shares. In otherwords, when the two companies made this agreement to merge, Securecom had 130M shares and Holdco had over 678M shares + warrants.

Liberty did not "allow unnamed individuals to purchase shares at $0.001". This was accounting for the existing 240M shares that existed in the company called Holdco for the transaction to merge both companies and account for all the outstanding shares and warrants.

https://imgur.com/2y7UAM3

Page 17 of the document provided by Hindenberg and filed to Sedar states the following.

The purpose of the Business Combination is to effect SecureCom's acquisition of all the issued and outstanding Holdco Shares.

https://www.sedar.com/GetFile.do?lang=EN&docClass=10&issuerNo=00036225&issuerType=03&projectNo=02642355&docId=4139658

Conclusion: QCM needs to do better Due Diligence.