TFC Article

West Australian Sandalwood producer TFS has come out swinging in response to being called a Ponzi scheme by Glaucus Capital, calling the blistering 40-page report that sparked a slide in its share price "self-serving".
Taking a leaf from the playbook established by the likes of Muddy Waters CEO Carson Block, the US hedge fund claims TFS has materially misled investors about future cash flows by making unrealistic assumptions about the yield from its trees and the future price of sandalwood.
The report also attempts to discredit the company's business partners and promoters, describing them as phantoms and incapable of performing the functions claimed.
TFS described the note as "a self serving report by a shorter of the stock in an attempt to drive TFS's share price down for their own financial gain" and noted the "substantial and egregious inaccuracies" contained within.
TFS Corporation, which has been rebranded as Quintas today, is down 7.4 per cent to $1.31. TFS has traded as high as $1.83 over the last 12 months. TFS is a sponsor of Formula One driver Daniel Ricciardo.
The attack on company represents one of the first examples of a brash US-style investor activism in Australia.
Glaucus Capital director of research Soren Aandahl toured Australia's capital cities earlier this year briefing journalists ahead of revealing its first ASX short position. Based in California and Texas, Aandahl was not able to reveal his firm's funds under management.
ASX short sell data reveals that 12 per cent of the stock in TFS has been short sold.