Aleafia Health, its subsidiary Emblem and Aphria entered into a settlement agreement on June 25, 2020 to resolve their outstanding dispute in respect of the termination of the parties’ wholesale cannabis 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.