An activist investor with an embellished CV at Hexo

The militant investor who has just placed his pawns on the board of directors of Hexo after strongly criticizing the Quebec cannabis producer has embellished his CV by presenting himself as a graduate of an Ontario university. However, no one named Adam Arviv graduated from Western University.

Julien Arsenault
The Press

After a dispute that spanned several months, the 46-year-old Ontarian settled his differences with the Gatineau company, which is in financial turmoil. It has agreed to welcome among its directors two candidates proposed by Mr. Arviv’s firm, Kaos Capital, including the chairman of the board. Kaos owns a 2% stake in Hexo, one of the main suppliers of the Société québécoise du cannabis (SQDC).

In his proposal released on February 2, where he scolded the company’s board of directors, Mr. Arviv praised his professional background in addition to claiming to have a bachelor’s degree in economics from an Ontario university.

“We can tell you that no individual with that name [Adam Arviv] received a degree from Western University,” said a spokesperson for the establishment, Roxanne Beaubien, in response to questions from The Press.

Mr. Arviv has two profiles on the LinkedIn social network. On one of them, he presents himself as the holder of a bachelor’s degree in economics from Western University obtained at the end of his studies, from 1993 to 1996. On the other, he indicates that he attended the establishment without doing reference to obtaining a diploma.

Typically, activist investors are not shy about publicly questioning a company’s strategy in an attempt to reshape it in the short term to improve its performance and make a quick gain by selling their stock.

Hexo sees no problem

It was impossible to speak face to face with Mr. Arviv. The first request was made on February 28. In an exchange of messages, the investor offered to call back The Press, but did not. Mr. Arviv said he “never said he graduated” from Western University and was not the person who wrote the press release issued on February 2 in which he attacked Hexo. Mr. Arviv did not say why he was presented as a university graduate.

“You should do your homework before you throw shit in my face,” he wrote to The Press. I’m sure you know that some of the most successful people in the world have dropped out of college to start their own businesses. »

After reading the press release issued by Mr. Arviv last February, Richard Leblanc, professor of governance, law and ethics at York University, believes that there is no ambiguity: Mr. Arviv present as a bachelor.

Asked about Mr. Arviv’s educational background, Hexo came to his defense.

“This tabloid journalism [garbage journalism] has no place in Canada, the company wrote in an email. We are proud of our association with Adam Arviv and our shareholders. »

Flayed by the activist investor, real estate mogul Vincent Chiara is still a member of the marijuana producer’s board of directors. In interview with The Presshe said he was “not sure” if Hexo had checked Mr. Arviv’s background.

“Anyway, he’s not on the board,” said Mr. Chiara. We did some checks and I’m not sure we looked at his schooling, but anyway, he’s not on the board. »

The businessman explained that the services of a “firm” had been retained to “validate” the candidates of Kaos Capital – Mark Attanasio and Rob Godfrey – who are now part of the board of directors, and that the latter had “passed the test”.

Not leaving the hostel

Hexo has been in turmoil since last fall, when it warned there was not enough money in its coffers to fund debt repayments.

Its auditor, PricewaterhouseCoopers, pointed out that the company had not maintained “effective internal control over its financial disclosures” and that “substantial doubt” hovered over its ability to continue its activities.

Co-founder and CEO Sebastien St-Louis and COO Donald Courtney have left. Scott Cooper, previously head of Truss Beverages, a joint venture between Molson Coors Canada and Hexo, took the helm.

Last Friday, Hexo reached an agreement with the Ontario company Tilray, which will buy up to 211 million US of the debt of the Quebec company. This gives him the option to acquire up to 37% of Hexo shares. The agreement allows the Gatineau company to get some oxygen.