Aleafia Health Announces Termination of Supply Agreement With Aphria Inc.
October 08 2019 - 8:00AM
Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH)
(“
Aleafia Health” or the
“
Company”) announces that it has provided Aphria
Inc. (TSX: APHA, NYSE: APHA) (“
Aphria”) with a
formal notice of the termination, effective October 7, 2019, of the
wholesale cannabis supply agreement (the “
Supply
Agreement”) dated September 11, 2018 between Aphria and
Emblem Corp. (“
Emblem”), a wholly-owned subsidiary
of the Company, providing for the provision by Aphria of up to
175,000 kg equivalents of cannabis products over an initial
five-year term, commencing May 1, 2019.
Following Aphria’s failure to meet its supply
obligations under the Supply Agreement, Emblem has exercised its
contractual right to terminate the Supply Agreement in accordance
with its terms. The termination of the Supply Agreement by Emblem
was made without prejudice to its rights accrued to the date of
termination (including its rights to be refunded the unused balance
of its deposit) and its rights to seek damages as a result of
Aphria’s default and termination thereunder.
The Company does not believe the termination of
the Supply Agreement will materially and adversely affect the
Company’s business, operations or results.
For Investor and Media Relations, please
contact:
Nicholas Bergamini, VP Investor
Relations1-833-TSX-ALEF (879-2533)IR@AleafiaHealth.comLEARN MORE:
www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health is a leading, vertically
integrated cannabis health and wellness company with four primary
business units: Cannabis Cultivation & Products, Health &
Wellness Clinics, Cannabis Education, and Consumer Experience with
ecommerce, retail distribution and provincial supply
agreements.
Aleafia Health owns three major cannabis product
& cultivation facilities, two of which are licensed and
operational including the first large-scale, operational outdoor
cultivation facility in Canadian history. The Company produces a
diverse portfolio of commercially proven, high-margin derivative
products including oils, capsules and sprays. Aleafia Health
operates the largest national network of medical cannabis clinics
and education centres staffed by MDs, nurse practitioners and
educators and has international operations in three continents.
Innovation is at the heart of Aleafia Health
competitive advantage. The Company maintains a medical cannabis
dataset with over 10 million data points to inform proprietary
illness-specific product development and its highly differentiated
education platform FoliEdge Academy. The Company is committed to
creating sustainable shareholder value and has been named the 2019
top performing company of the year by the TSX Venture Exchange
prior to graduation to the TSX.
Forward Looking Information
This news release contains forward-looking
information within the meaning of applicable Canadian and United
States securities laws. Often, but not always, forward-looking
information can be identified by the use of words such as “plans”,
“expects” or “does not expect”, “is expected”, “estimates”,
“intends”, “anticipates” or “does not anticipate”, or “believes” or
variations of such words and phrases or state that certain actions,
events or results “may”, “could”, “would”, “might” or “will” be
taken, occur or be achieved. Forward-looking information involves
known and unknown risks, uncertainties and other factors which may
cause the actual results, performance or achievements of the
Company or its subsidiaries to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking information contained in this news release.
Risks, uncertainties and other factors involved with
forward-looking information could cause actual events, results,
performance, prospects and opportunities to differ materially from
those expressed or implied by such forward-looking information,
including risks contained in the Company’s annual information form
filed with Canadian securities regulators available on the
Company’s SEDAR profile at www.sedar.com. Although the Company
believes that the assumptions and factors used in preparing the
forward-looking information in this news release are reasonable,
undue reliance should not be placed on such information and no
assurance can be given that such events will occur in the disclosed
time frames or at all. The forward-looking information included in
this news release are made as of the date of this news release and
the Company does not undertake any obligation to publicly update
such forward-looking information to reflect new information,
subsequent events or otherwise unless required by applicable
securities legislation.
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