PCLOF - PharmaCielo Addresses Misleading Short Seller Report
2024-03-27 17:08:02 ET
CEO of PharmaCielo, David Attard speaks to shareholders about the short seller report
In early March, Hindenburg Research issued a short seller report targeting PharmaCielo's credibility and its stock. Moreover, the Company believes that this report represents a malicious attempt to manipulate PharmaCielo's common shares by spreading false, distorted and misleading statements about the Company.
Following the publishing of this report, the board of directors formed a committee headed by two independent directors to examine all allegations.
Report Conclusions
The Independent Review determined, with the benefit of a comprehensive legal and forensic accounting support, that the authors of the Hindenburg Research report (who by their own admission are short PharmaCielo stock) created a short sale thesis. They did so by construing a set of allegations based on faulty research and interpretation.
The misleading report was actively promoted to investors and media as part of a “short and distort” campaign. The objective of such campaigns is not just to profit from a short position if the thesis proves correct, but to ensure the position pays off. This is done by spreading malicious rumors from “anonymous sources”, or worse, as in PharmaCielo’s case. And by presenting loosely aggregated bits of information as connected facts and presenting these “facts” in a negative light.
While short selling is a counter trading strategy, campaigns such as the one waged against PharmaCielo are actively investigated by both the Securities and Exchange Commission in the U.S. as well as the Ontario Securities Commission. This is due to their tendency to distort markets and cause unwarranted damage to shareholders.
"The special committee concluded that the allegations made in the short seller report were entirely false or based on intentionally misrepresentative facts that were sensationalized to cast the company in a negative light.", says CEO, David Attard. According to Attard, this was was done to manipulate the stock price for the financial gain of the short seller. However, it was at the expense of its honest shareholders.
For more information as well as a summary and details gathered by the special committee please click here .
About PharmaCielo
PharmaCielo is a global company with headquarters in Canada. Further, they're focusing on ethical and sustainable processing and supplying of all natural, medicinal-grade cannabis oil extracts. Additionally, PharmaCielo's principal, and wholly owned, subsidiary is PharmaCielo Colombia Holdings S.A.S. The headquarters are at its nursery and propagation centre located in Rionegro, Colombia.
For more information on PharmaCielo Ltd. (TSXV: PCLO, OTCQX: PCLOF) please fill out the form below.