Aleafia Health Inc. and Emblem Cannabis Corporation Announce Settlement of Claim
June 25 2020 - 9:25AM
Aleafia Health Inc. (TSX: AH) (OTC: ALEAF) (“
Aleafia
Health” or the “
Company”), a global
cannabis health and wellness company, its subsidiary Emblem
Cannabis Corporation (“
Emblem”) and Aphria Inc.
(“
Aphria") today announced the parties entered
into a settlement agreement on June 25, 2020 (the
“
Settlement Agreement”) to resolve their
outstanding dispute in respect of the termination of the parties’
wholesale cannabis supply agreement (the “
Supply
Agreement”).
Under the terms of the Settlement Agreement
Emblem shall receive total consideration of C$29,100,000, comprised
of C$15,500,000 cash payment, the issuance of common shares of
Aphria with an aggregate market value of C$10,000,000 that will be
freely tradeable and transferable in Canada and waiver of claimed
receivables. The parties have also agreed to a mutual release of
all existing and potential claims relating to the Supply Agreement,
and to the dismissal of the arbitration proceedings that had
previously been commenced.
“The settlement agreement is fair and
satisfactory to both parties, and allows Aleafia Health to move
forward with a significantly strengthened balance sheet. With a
substantial injection of value into our business, we can focus on
our continued growth,” said Aleafia Health CEO Geoff Benic.
This settlement ends any and all potential
claims and litigation against and between Aphria, Emblem, and
Aleafia Health relating to the Supply Agreement.
For Investor & Media Relations
Nicholas Bergamini, VP Investor Relations
1-833-879-2533IR@AleafiaHealth.com
Learn More: www.AleafiaHealth.com
About Aleafia Health
Aleafia Health is a vertically integrated and
federally licensed Canadian cannabis company offering cannabis
health and wellness services and products in Canada and in
international markets. The Company operates medical clinics,
education centres and production facilities for the production and
sale of cannabis.
Aleafia Health owns three significant licensed
cannabis production facilities, including the first large-scale,
legal 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 operates internationally in three continents.
Innovation, the heart of Aleafia Health’s
competitive advantage, has led to the Company maintaining 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; the TSX
Venture Exchange named Aleafia the 2019 top performing company
prior to its 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 and are expressly qualified by this
cautionary statement. 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 statements in this
news release include, but are not limited to, statements with
respect to injection of value this settlement brings to the
Company’s business. 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 dated
March 18, 2020 which is 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 is 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.