u/stalkerontheside

Latest 2Q2026 13F filings are out (institutional shareholders as of June 30, 2026).

Citadel added ~5.5M shs (total hldgs ~6.6M) while Weiss Asset Mgmt is a new holder with 1.7M shs. Appears these two bought Vff's 7.5M share equity offering in Q2.

(Arguably one the most sophisticated quant funds and a storied hedge fund, dating back to the early 90's.)

Other notable rockstar quant fuds or hedge funds adding to their positions during Q2:

• Two Sigma, Renaissance and Millennium

One other notable large mutual fund manager, added meaningfully to what was a starter position from Q1, American Century, adding ~1.1M shs.

Considering Vff's blowout Q2 eps numbers this past week, Vff's future stock price performance has the wind at its back.

Link to Citadel's SEC filing of their holding 5.5% of Vff's outstanding shares

https://www.sec.gov/Archives/edgar/data/1584549/000110465926097143/xslSCHEDULE_13G_X02/primary_doc.xml

Does management need to reign in shareholder dilution?

Common shs outstanding / Option Comp shs exercisable / RSU Comp shs exercisable

12/31/2021

• 88,234,000 / 2,042,663 / 200,000

03/31/2026

• 114,048,000 / 4,854,220 / 2,106,376* (not yet exercisable but granted at $0.76)

Post 1Q26 earnings release, 7.5M common shares were issued and 15.3M warrants are still outstanding ($1.65 strike). Neither are included in above numbers.

With dilution of over 50% in less than five years, pondering how much this limits future 'per share earnings', mkt assigned earnings multiple and corresponding stock appreciation.

No knocking their revenue growth, gaap net income and OCF. This aspect has been downright outstanding and top-of-class within the entire cannabis sector. However, above dilution is creating a strong headwind.

Thoughts?

Thinking about how all these items come together:

• Weak vff stock action between 12/31 and 3/31 in comparison to 13f filings out yesterday (13f deadline and 45 days in arears)
  • Yet there were few large sellers in comparison to mediocre 4Q2025 eps reported mid-March. In fact most quants (some of the best on Wall St represented) held or added according to 3/31's 13f.
• Vff stock price essentially flat since 3/31 to today (5/15). However, strong Q1 eps report was released. So if quants held during 12/31 to 3/31 time period, fair suspicion they continue holding (if not adding), due to positive news flow.
• Gigantic $2 strike, Jan 2028 call option open interest (~21k). Too many variables to guess which hedge or quant fund holds and/or how they're using to hedge risk. Only fair conclusion, this is not retail.
• 2026 trading action (mid-December to today) feels eerily similar to first four months of calendar 2025. Relentless seller sitting on Vff stock with unlimited shares for sale.
  • In 2025, while I didn't like, this was a good strategy. Vff was in a financially perilous position. Running very low on cash, yet to turn a profit and hit or miss on operating cash flow.
  • Hence, back then the institutional seller (shorting, I suspect) was trying to drive Vff out of business i.e., stock price was so low (~$0.60) not only facing delist from NASDAQ but doing a material equity raise would not have been possible. In combination, debt markets were closed to both bad business models / cannabis sector in general. Vff was over a barrel.
• However, Vff spinoff of produce and subsequent four quarters in row of GAAP net income has completely TRANSFORMED Vff (as a company) viability and stability.
• Recall stock exploding higher with May 13, 2025 news release. Stock price essentially doubled on huge volume and long-time seller was decimated and carried out.
• Back to current Vff stock action, MSOS sold 2 million shares on 5/8/2026. Otherwise, as discussed above, no reason for other large holders to sell stock. Hence, is another short seller trying dreadful early 2025 strategy? In the face of current positive news? And with news (along with earnings / cash flow) estimated to improve further (capacity expansion finally online).
• Whoever is selling seems crazy to me. Maybe a pair trade or some other hedge. Regardless, considering Vff is best-in-class by a moonshot, in the cannabis sector I cannot reconcile.
• With recent intraday low stock price of $2.50 on March 20th, watching tape/volume/etc. seller has been trying push lower and to a new intraday low, to no avail. The past week buyer(s) have stepped up and appear to be halting multi-month Vff stock slide. I am keenly observing.
• It feels like the powder keg is building all over again, and an upside explosion is imminent during 2026.