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The short-seller report’s authors allege that they believe DeFrancesco used shell companies — which had originally been named after his private equity firm, Delavaco Group — to first purchase the assets, before they were later acquired by SOL and then flipped to Aphria at “inflated” prices.

In the interview with the Financial Post, DeFrancesco said the use of shell companies was not unusual in private equity transactions, and defended the quality of the assets.

DeFrancesco said the photos of Marigold in the report were “inaccurate” and that he had visited their operations prior to the acquisitions.

“It was a five to six acre facility and they had just started cultivation when we were there. We spent time with the team and met with government officials,” he said.

DeFrancesco also questioned the photos of the ABP facility.

“I’m not sure when those pictures were even taken,” DeFrancesco said. “I want the story to be crystal clear. Part of the requirement to win the licence to grow in Argentina is that you have to have an import and distribution licence within Argentina. What we did, is we went out and bought a pharmaceutical distribution company called ABP — that company came with a pharmacy, that’s what you’re seeing there.”

SOL’s chief executive Brady Cobb also questioned the report, and noted it was premised on DeFrancesco being an “insider” of Aphria, which he said was not the case.

“This entire report assumes Andy DeFrancesco was an insider of Aphria. A very quick search of SEDAR will confirm that’s not true. He’s not an insider and has never been,” Cobb told the Financial Post.