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Aleafia Health Inc. - $ALEAF STOCK NEWS

Welcome to our dedicated page for Aleafia Health news (Ticker: $ALEAF), a resource for investors and traders seeking the latest updates and insights on Aleafia Health stock.

Aleafia Health Inc. (TSX: AH, OTCQB: ALEAF) is a premier, vertically integrated, federally licensed Canadian cannabis company. Focused on delivering high-quality health and wellness products, Aleafia Health operates medical clinics, education centers, and production facilities across Canada and international markets. The company boasts three significant licensed cannabis production facilities, including the first large-scale legal outdoor cultivation facility in Canadian history.

Aleafia Health's diverse portfolio includes oils, capsules, sprays, dried flower, pre-rolls, vapes, edibles, sublingual strips, and topicals. The company's medical cannabis clinics and education centers are staffed by physicians, nurse practitioners, and educators, creating the largest national network of its kind in Canada. Internationally, Aleafia Health is active in three continents, including Australia and Germany.

Recent financial highlights include the second consecutive quarter of positive Adjusted EBITDA with a 14% Adjusted EBITDA margin, placing Aleafia among the top three for profitability in its sector. The company reported a 39% growth in adult-use revenue from the prior quarter and a 40% increase in medical net revenue, achieving a record $1.1 million month in November 2022. Aleafia also shipped its first orders under new European agreements, estimating $1 million in sales to its second European partner.

Despite industry-wide challenges, Aleafia achieved a 37% gross profit before fair value adjustments, reflecting a strategic focus on cost containment and profitability. The company's adult-use brand, Divvy, remains a key driver, contributing to notable revenue growth and market share. Aleafia's expansion into Manitoba and successful international ventures are testaments to its robust operational capabilities and strategic foresight.

However, Aleafia Health is navigating financial pressures, including breaches of certain covenants under its Senior Secured Loan Agreement. The company has entered creditor protection under the Companies' Creditors Arrangement Act (CCAA), aiming to restructure its business and financial affairs. Red White & Bloom Brands Inc. (RWB) has been selected as the successful bidder for Aleafia's assets in a court-supervised sale process, subject to court approval.

Aleafia Health remains committed to maximizing value for its stakeholders while continuing to focus on innovation, strategic growth, and delivering high-quality cannabis products to its customers.

Rhea-AI Summary
Aleafia Health Inc. announces Red White & Bloom Brands Inc. as the successful bidder in the sale and investment solicitation process. The Court-approved sale includes the acquisition of certain assets and share subscription agreement. Aleafia will also sell its Grimsby facility to a third-party purchaser. Court approval for the sale transactions will be sought on October 27, 2023.
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Aleafia Health and its subsidiaries have been granted an order from the Ontario Superior Court of Justice to restructure their business and financial affairs. The company terminated a letter agreement with Red White & Bloom Brands Inc. and is currently in breach of certain covenants under a loan agreement. The board of directors determined that seeking creditor protection under the CCAA was in the best interest of the company and stakeholders. The Initial Order provides for a stay of proceedings, debtor-in-possession financing, and the appointment of a monitor. The company intends to launch a sale and investment solicitation process for its business and assets.
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Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF) and Aleafia Health Inc. (TSX: AH and OTCQB: ALEAF) mutually terminate the binding letter agreement for a proposed business combination transaction without liability or cost. The termination is due to the inability to satisfy a key condition of the transaction related to the approval of holders of Aleafia convertible debentures. RWB is considering all available options, while Aleafia's disinterested board members are exploring potential strategic alternatives to maximize value for stakeholders.
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Aleafia Health Inc. has announced that it will be paying interest in-kind on its Series A, B, and C secured debentures. Holders of debentures as of June 19, 2023, will receive additional debentures as payment of accrued interest. Trading in the debentures will be halted on June 22, 2023, and will resume on June 23, 2023, on an ex-distribution basis.
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Red White & Bloom Brands Inc. (RWB) and Aleafia Health Inc. (Aleafia) have entered into a binding letter agreement for RWB to acquire Aleafia and its subsidiaries. The combined company is expected to represent C$138 million in trailing distribution and retail revenue and have approximately 3,000 retail locations in North America. The transaction is expected to result in annualized synergies of approximately C$10 million and provide opportunities for collaboration and growth in the cannabis industry.
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Aleafia Health Inc. has entered into a forbearance agreement with NE SPC II LP, extending the forbearance period under its loan agreement until June 5, 2023. The agreement is in light of ongoing negotiations for a potential refinancing. No decisions regarding refinancing have been made as of the date of this press release.
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Aleafia Health announces an amendment to its loan agreement with NE SPC, allowing for forbearance until May 31, 2023. The company is currently in breach of certain financial covenants and has initiated a strategic review process to explore potential alternatives.
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FAQ

What does Aleafia Health Inc. do?

Aleafia Health Inc. is a vertically integrated and federally licensed Canadian cannabis company that offers cannabis health and wellness services and products. It operates medical clinics, education centers, and production facilities.

What are some of Aleafia Health's recent financial achievements?

Aleafia Health reported its second consecutive quarter of positive Adjusted EBITDA and a 14% Adjusted EBITDA margin. The company also saw a 39% growth in adult-use revenue and a 40% increase in medical net revenue.

What products does Aleafia Health offer?

Aleafia Health offers a diverse portfolio of cannabis products, including oils, capsules, sprays, dried flower, pre-rolls, vapes, edibles, sublingual strips, and topicals.

Where does Aleafia Health operate?

Aleafia Health operates in Canada and international markets, including Australia and Germany. It has three significant licensed cannabis production facilities in Canada.

What challenges is Aleafia Health currently facing?

Aleafia Health is navigating financial pressures and breaches of certain covenants under its Senior Secured Loan Agreement. The company has entered creditor protection under the Companies' Creditors Arrangement Act (CCAA).

Who has been selected as the successful bidder for Aleafia's assets?

Red White & Bloom Brands Inc. (RWB) has been selected as the successful bidder for Aleafia's assets in a court-supervised sale process, subject to court approval.

What is the significance of Aleafia's Divvy brand?

Divvy is Aleafia Health's everyday cannabis brand, contributing significantly to revenue growth and market share. It remains a key driver of the company's adult-use revenue.

How is Aleafia Health addressing financial challenges?

Aleafia Health is restructuring its business and financial affairs under the CCAA, with plans to maximize the value of its assets through a sale and investment solicitation process.

What are Aleafia Health's international operations?

Aleafia Health is active in international markets, including Australia and Germany. The company recorded $0.6 million in international net revenue for Q3 FY2023 and continues to build a pipeline of opportunities in medical cannabis regions.

What is Aleafia Health's strategy for future growth?

Aleafia Health focuses on innovation, strategic growth, and delivering high-quality cannabis products. The company aims to continue expanding its product portfolio and market presence, both domestically and internationally.

Aleafia Health Inc.

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