GFL Environmental Inc. is refuting allegations levelled against it by short-seller Spruce Point Capital Management LLC that sent the company’s shares sharply lower Tuesday.

In a statement released after the close of trading, GFL said Spruce Point’s report includes “numerous inaccuracies and mischaracterizations” and was a “short and distort” designed solely to benefit the New York-based investment firm.

"Spruce Point has never engaged with the company and the report is without merit. We have the support of our shareholders and the utmost confidence in management, who have held themselves to the highest ethical standards,” said Dino Chiesa, GFL’s lead independent director. “We continue to believe in the strategy of the business and its focus on creating long-term shareholder value."

The statement came in response to a scathing short report from Spruce Point, where the fund mapped out its “strong sell” recommendation and argued the waste-management company could collapse under the weight of its debt without a stream of new capital.

Shares of GFL were battered by the report, closing the day down 9.02 per cent in Toronto.

Spruce Point alleged the company’s roll-up acquisition strategy has been overly aggressive and creates an opaque corporate structure. It also questioned GFL’s ability to complete its acquisitions of Waste Management Assets and WCA Waste. Those deals would increase GFL’s American footprint as the company looks to add scale south of the border.