Wednesday, August 27, 2025

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: APHA) (NASDAQ: APHA). The payment is related to a failed cannabis supply agreement entered into between Emblem and Aphria, which Aphria failed to uphold.

Under the settlement agreement, Aleafia subsidiary Emblem Corp will receive total consideration of C$29.1 million. Consideration consists of a $15.5 million cash payment, as well as the issuance of Aphria common shares with a value of $10.0 million. Shares issued in connection with the settlement will be freely treadeable and transferable. In exchange, Emblem will waive all claimed receivables.

The settlement will result in all parties entering a mutual release of all potential and existing claims, as well as putting an end to current arbitration.

The settlement is in relation to a supply agreement entered into between Emblem Corp and Aphria on September 11, 2018. Under the terms of the supply agreement, Aphria was to provide emblem with a total of 175,000 kilograms of dried cannabis over a five year period. Last year, the Emblem terminated the agreement following Aphria’s failure to supply the first product in the allotted time frame.

Aleafia Health last traded at $0.50 on the TSX.


Information for this briefing was found via Sedar, Aphria Inc 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.

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