Saturday, May 31, 2025

Latest

Aleafia Walks From Proposed Merger With Red White & Bloom

Aleafia Health (TSX: AH) has been forced to walk away from the previously announced proposed transaction with that of Red White & Bloom Brands (CSE: RWB), which would have seen the two North American cannabis operators merge.

A key aspect of the proposed transaction was the settlement of certain convertible debentures currently outstanding, which were issued last year by Aleafia when it was unable to repay certain debts that were maturing. The transaction as proposed was to see three separate series of notes settled for an aggregate $6.0 million.

The three separate series of notes collectively have over $37 million in outstanding principal however.

Aleafia indicated that it had received support from certain holders of the debt, but over a third of holders had expressed that they would not be approving of the transaction as proposed, forcing the company to walk away from discussions.

READ: Aleafia Health Signs Letter Agreement To Be Acquired By Red White & Bloom

Despite the formal merger talks having closed, Red White & Bloom currently holds certain debt owed by Aleafia, which the company is in breach of. Red White & Bloom has not indicated that it intends to enforce security on Aleafia’s assets as a result of the debt being in default, but the cannabis operator is not said to have waived any outstanding covenant breaches, and is said to be “considering all available options.”

Aleafia’s board of directors is said to be continuing to explore potential strategic alternatives for the company following the failure to close the proposed merger.

Aleafia Health last traded at $0.025 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.

Leave a Reply

Video Articles

Alamos Gold Q1 Earnings: The Inside Scoop

Cerrado Gold Q4 Earnings: The Turnaround is Working

B2GOLD Q1 Earnings: Revenue Up, Production & Cash Flow Decline

Recommended

Canadian Copper: The $172M Combined Strategy PEA

ESGold Begins Concentration Tests Ahead Of First Production

Related News

Red White & Bloom Acquires Rights To High Times Brand Across Michigan, Illinois And Florida

This morning, new issuer Red White & Bloom Brands (CSE: RWB) announced that it has...

Friday, June 5, 2020, 09:06:25 AM

Aleafia Health Boots Benic As CEO, Names Tricia Symmes To Role

Aleafia Health (TSX: AH) is finally shaking up its management team after its financial struggles....

Tuesday, February 8, 2022, 07:44:50 AM

Red White & Bloom Focuses On Edibles In Florida Medical Market

Red White & Bloom (CSE: RWB) is well underway with the development of its recently...

Thursday, September 9, 2021, 09:05:21 AM

Aleafia Health Launches First 2.0 Cannabis Products

Aleafia Health (TSX: AH) has finally entered the cannabis 2.0 market. The company issued a...

Tuesday, September 29, 2020, 10:07:50 AM

Red White & Bloom Begins Operations At New Manufacturing Facility

Red White & Bloom (CSE: RWB) this morning continued the development of its operations in...

Tuesday, January 18, 2022, 08:39:59 AM