The Globe and Mail reports in its Friday edition that the Alberta Securities Commission is seeking to block prominent short-seller Marc Cohodes from trading in securities of Badger Daylighting, escalating a bitter feud between the oil-field-services company and the U.S. investor.
The Globe's Jeff Lewis writes that the ASC said on Thursday that it is seeking the interim order on grounds that Mr. Cohodes has misrepresented Badger's business, including allegations of illegal dumping, to support his short position in the stock. The order, if granted, would also prohibit him from spreading false or misleading statements about Badger.
Reached by phone on Thursday, Mr. Cohodes rejected the allegations. "It's beyond preposterous. It's beyond kangarooish," he said. "There will be full disclosure of everything that has gone on, will go on and everything will come out. They want to play that game? No problem."
Mr. Cohodes, whose other shorting targets have included Valeant Pharmaceuticals and Home Capital Group, has accused Badger of faulty accounting while arguing the shares are overvalued.
Last May, Badger said the ASC had completed an investigation into allegations by short sellers and found no wrongdoing.
© 2019 Canjex Publishing Ltd. All rights reserved.