Ontario-primarily based cannabis operator Aphria pledged to enhance its management practices immediately after an independent investigation discovered some of its directors had conflicts of interest associated to the 2018 acquisition of LATAM Holdings.
When the acquire cost of the assets in Argentina, Jamaica and Colombia was deemed to be affordable – albeit at the leading of the marketplace variety – the investigation concluded that unidentified, nonindependent directors had such conflicts that have been not revealed to the rest of the board, according to a report compiled by a particular committee of independent directors.
Aphria also confirmed at the very same time that CEO Vic Neufeld and co-founder Cole Cacciavillani will resign from the firm successful March 1.
The LATAM acquire came beneath intense scrutiny in December 2018 immediately after brief sellers charged that Aphria overpaid for the assets.
Aphria stock subsequently tumbled as brief sellers moved in, also claiming the company’s management group was component of a shell game controlled by insiders raiding firm coffers to line their personal pockets.
The new management practices will consist of:
- A assessment of the composition of the board of directors to assure additional independence.
- Additional instruction on corporate governance concerns.
- Establishment of formal procedures when implementing strategic transactions.
- Much better handle of possible conflicts of interests.
- Extra reliance on independent professionals and advisers.
Aphria trades on the New York Stock Exchange and the Toronto Stock Exchange beneath the ticker APHA.