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.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
