Sunday, June 29, 2025

Aleafia Health Begins Strategic Review Process As Debt Comes Due

Lenders within the Canadian cannabis market appear to be nearing their wits end as they move to collect on well-past due debts. Aleafia Health (TSX: AH) appears to be the latest source of lender frustration, with the company having until May 31 to come up with the cash to settle a credit facility taken out at the end of 2021.

The lender in question for Aleafia is referred to as NE SPC II LP, whom originally agreed to lend the company $12.0 million under a term facility, with an additional revolver of up to $7.0 million. Between the two facilities, the company as of December 31, 2022, collectively owes $8.1 million.

The loan reportedly is payable on demand, however the lender has been gracious enough to provide the company an amendment to the debt, that will see it refrain from calling in the loan until the earlier of an event of default, or May 31, 2023. Aleafia is said to currently be in breach of certain covenants related to the debt.

The company had just $434,000 in cash on hand as of December 31.

As a result of the oncoming need to pay off the debt, Aleafia appears to have tossed in the towel after years of struggling, with a strategic review process having now begun to evaluate potential strategic alternatives for the company. Proposed options are said to include refinancing of the debt, a sale of all or a portion of the firms assets, a business combination, issuance of equity, a strategic investment, or “other strategic transaction structure.”

Aleafia Health last traded at $0.045 on the TSX.


Information for this briefing was found via Sedar and Aleafia Health. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver Will Hit $50 This Year! – Todd Bubba Horwitz

Premier American Uranium: The Roll Up Strategy Targets Nuclear Fuels

Santacruz Silver Q1 Earnings: Steady As She Goes

Recommended

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Emerita Resources Formally Appeals Administrative Ruling On Aznalcóllar Related To 2017 Complaint 

Related News

Aleafia Completes Outdoor Planting On 66 Acres

It appears that poor sector tailwinds have yet to slow down Aleafia Health (TSX: AH)...

Friday, July 10, 2020, 08:43:09 AM

Aleafia Health Harvests 31,200 Kilograms Of Flower From Outdoor Crop

Aleafia Health (TSX: AH) this morning released its cultivation results from the 2020 outdoor harvest,...

Friday, November 6, 2020, 08:51:26 AM

Aleafia Health Rumoured to Be Placing Hostile Bid for Canntrust Holdings

Aleafia Health (TSX: ALEF) is rumored to be placing a hostile bid for Canntrust Holdings...

Friday, August 2, 2019, 02:45:12 PM

Aleafia Announces $13.0 Million Bought Deal Financing

Aleafia Health (TSX: ALEF) is the latest firm within the cannabis space to conduct a...

Monday, May 11, 2020, 08:22:42 AM

Aleafia Health Secures $12 Million Term Loan, $7 Million Receivables Credit Facility

Aleafia Health (TSX: AH) this morning did some juggling of its outstanding debt as a...

Wednesday, December 29, 2021, 08:11:07 AM