Liberty (CSE: LHS) announces management changes
Liberty Health Sciences (CSE: LHS, OTCMKTS: LHSIF) announces another round of management changes since the short seller’s report by QCM Funds and Hindenburg Research back in December. I’m sorry but I guess I’m just suspicious (cynical?) about the pattern that is emerging: short seller issues report pointing out several discrepancies, company has “independent” review done that concludes the short seller was mostly inaccurate, company gets rid of management involved and the world is supposed to carry on as if nothing was wrong. The companies say the internal report says the reports were “materially inaccurate” but all our senior management is resigning. As I’ve said on many occasions, I just don’t see it that way. If management was involved in “self-dealing,” I interpret that to mean they were taking money that should have gone to company shareholders. That has to result in breaking securities regulations at the least and breaking the law at most. Leaving their positions is not sufficient. It just doesn’t pass the smell test.
To me the list of who’s gone is less important than what they did but here goes. Last month, Vic Neufeld and John Cervini, the Aphria connection, resigned. Then Ian McKinnon and John Hick resigned after being on the Board for around a month. It looks like McKinnon and Hick were not involved in any of these activities but left as soon as they found out what they had gotten into. Now George Scorsis, Chief Executive Officer and Rene Gulliver, Chief Financial Officer resigned their positions and Scorsis resigned his Board position as well.
Given the many companies there are to choose from there is no reason to choose one with such a tainted history.