Thursday, September 18, 2025

Aleafia Health To Repay $25.0 Million In Convertible Debt Due In February

Aleafia Health (TSX: AH) this morning issued a brief update, indicating that the company is looking to repay outstanding convertible debentures. The debentures, which amount to $25.0 million in outstanding debt, are intended to be repaid by the company in the form of cash.

Originally issued in 2018 by that of Emblem Corp, whom Aleafia acquired close to two years ago, the outstanding debt represents roughly $2.0 million in annual interest expense. The debt is slated to come date on February 2 2021, and contains an interest rate of 8% per annum, along with a $2.3875 per share conversion price.

Given that a revised conversion price would cause hefty dilution for shareholders, the company appears to be taking the responsible path by paying it off in cash instead. The company posted a cash and cash equivalent position of $34.6 million as of September 30, however it still has a negative operational cash flow, leaving the potential need for future funding on the table.

Aleafia Health last traded at $0.475 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

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Aleafia Sees Revenue Decline In 2021

The results are in for Aleafia Health (TSX: AH) and it appears the company had...

Tuesday, February 15, 2022, 10:40:00 AM

Aleafia Walks From Proposed Merger With Red White & Bloom

Aleafia Health (TSX: AH) has been forced to walk away from the previously announced proposed...

Monday, July 17, 2023, 08:22:14 AM

Aleafia Health Posts Revenues of $4.95 Million for Third Quarter

Aleafia Health (TSX: ALEF) reported its third quarter financial results this morning, posting net revenues...

Tuesday, November 12, 2019, 09:26:12 AM

Aleafia Health Reports Q1 2020 Revenues of $14.6 Million, Net Loss of $6.2 Million

Aleafia Health (TSX: ALEF) this morning reported its first quarter 2020 financial results, reporting net...

Wednesday, May 13, 2020, 08:50:29 AM

Aphria To Compensate Aleafia Health $29.1 Million For Failed Supply Agreement

Aleafia Health (TSX: AH) is getting paid. Specifically, it’s getting paid by Aphria Inc (TSX:...

Thursday, June 25, 2020, 09:47:25 AM