Shares in Australian-listed sandalwood grower Quintis slumped as much as 33% after the company said Nestle had canceled a supply contract on December 16, but its board was kept in the dark until May 9.
The company had been targeted on March 221 by short-seller Glaucus Research, which described the company’s latest announcement as “a bombshell.”
“It means Quintis, which has also lost a client in China, didn’t
inform shareholders in a timely manner that two of its
biggest customers stopped buying its products,” Glaucus research director Soren Aandahl told Bloomberg News in an email,
Quintis had supplied more than 1,200 kilograms of sandalwood oil to
Nestle’s Galderma unit in 2014 and 2015, according to Bloomberg.