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.

Leave a Reply

Video Articles

We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp

Equinox Gold Q1 Earnings: When Everything Goes Wrong

SSR Mining Q1 Earnings: Costs Continue To Climb

Recommended

First Majestic Makes Second Major Discovery At Santa Elena In Just A Year

PTX Metals Hits 235.1 Metres Of Copper, Nickel Mineralization In Longest Intercept To Date At W2

Related News

Aphria on Promised Line-By-Line Rebuttal: Neufeld’s Responsibility, Not Ours

Marketwatch put out an article on Aphria Inc (TSX: APHA) (NYSE: APHA) this afternoon, outlining...

Tuesday, August 13, 2019, 03:02:41 PM

Aphria Announces US$100 Million At The Market Offering

Tucked at the bottom of today’s earnings release by Aphria Inc (TSX: APHA) (NASDAQ: APHA)...

Wednesday, July 29, 2020, 10:10:09 AM

Why Public Cannabis CFOs Need to Breakdown and Segment Their Accounts Receivables

Limited Disclosures Risk Signaling Poor Financial Health to Analysts and Investors The ‘accounts receivable to...

Sunday, November 24, 2019, 08:00:42 AM

Canaccord: Aphria Estimated To Post 16% Increase In Recreational Sales In Q1 2021

This morning, Canaccord Genuity’s analyst Matt Bottomley released the firms fiscal first-quarter forecasts for Aphria...

Wednesday, October 14, 2020, 11:53:00 AM

Tilray: Haywood Reiterates Hold Rating, $16.50 Price Target

With the Aphria, Tilray (NASDAQ: TLRY) merger finalized and Aphria shares consolidated earlier this month,...

Wednesday, May 19, 2021, 03:38:00 PM