Aleafia Health Inc. and Emblem Cannabis Corporation Announce Settlement of Claim

TORONTO, June 25, 2020 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSX: AH) (OTC: ALEAF) (“Aleafia Health” or the “Company”), a global cannabis health and wellness company, its subsidiary Emblem Cannabis Corporation (“Emblem”) and Aphria Inc. (“Aphria") today announced the parties entered into a settlement agreement on June 25, 2020 (the “Settlement Agreement”) to resolve their outstanding dispute in respect of the termination of the parties’ wholesale cannabis supply agreement (the “Supply Agreement”).

Under the terms of the Settlement Agreement Emblem shall receive total consideration of C$29,100,000, comprised of C$15,500,000 cash payment, the issuance of common shares of Aphria with an aggregate market value of C$10,000,000 that will be freely tradeable and transferable in Canada and waiver of claimed receivables. The parties have also agreed to a mutual release of all existing and potential claims relating to the Supply Agreement, and to the dismissal of the arbitration proceedings that had previously been commenced.

“The settlement agreement is fair and satisfactory to both parties, and allows Aleafia Health to move forward with a significantly strengthened balance sheet. With a substantial injection of value into our business, we can focus on our continued growth,” said Aleafia Health CEO Geoff Benic.

This settlement ends any and all potential claims and litigation against and between Aphria, Emblem, and Aleafia Health relating to the Supply Agreement.

For Investor & Media Relations

Nicholas Bergamini, VP Investor Relations 1-833-879-2533
[e-mail]

Learn More: www.AleafiaHealth.com

About Aleafia Health

Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and in international markets. The Company operates medical clinics, education centres and production facilities for the production and sale of cannabis.

Aleafia Health owns three significant licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and operates internationally in three continents.