HF Foods: Short seller sees over 90% downside, shares drop
23/03/2020 14:00
** Food distributor's shares HFFG.O drop 12.3% to $10.80
** Short seller Hindenburg Research sees https://hindenburgresearch.com/hf-foods
over 90% downside to company's stock, says insider deals
"appear to be hollowing out the company"
** HFFG went public in August 2018 by merging https://bit.ly/2UvGOfN
with a special purpose acquisition company Atlantic Acquisition
Corp
** HFFG shares rose as much as 36.2% in Friday's session,
apparently on no news; Hindenburg alleges Friday's jump could be
due to HFFG misleading the FTSE/Russell index
** Hindeberg also says HFFG's merger with B&R Global,
announced in June, was a 'related-party transaction' and not an
"arm's length" deal as claimed by the companies urn:newsml:reuters.com:*:nFWN23W0L3
** Report claims that HFFG did at least 43 related-party
deals in 2019 and the company's trucking unit used shareholder
cash to buy fleet of exotic vehicles
** YTD, HFFG has fallen ~45% including session's losses
(Reporting by Shariq Khan in Bengaluru)
((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780,
outside U.S. +91 80 6182 2681; Twitter: @s_qakhan ;))