Article by Ross Marowits, The Canadian Press
Cronos Group Inc.’s shares lost 28 per cent of their value Thursday after a U.S. short-seller accused the cannabis company of withholding information that could be useful to investors.
The Toronto-based company’s stock ended the day at $11.77 on the Toronto Stock Exchange, down $4.60 or 28 per cent, eliminating about a week’s worth of gains since Aug. 23.
About 14.7 million shares were traded on the TSX, far above the daily average.
Thursday’s decline followed a Citron Research report — published by short-short seller Andrew Left — that said Cronos has purposely not disclosed the size of distribution agreements with provinces because they are “so small they could never justify the premium investors are paying for the stock.”
Short selling is a trading technique that can produce a profit if a stock’s market value falls below a predetermined price.
Cronos hadn’t replied to a request for comment by end of the TSX trading day.