Aleafia Health announces closing of $ 10 million loan
- The credit facility provides the financial capacity to seize profitable growth opportunities
- New lender increases financial flexibility with new source of capital
- Improves liquidity by increasing the cash and marketable securities balance to $ 25 million
TORONTO, Aug 23, 2021 (GLOBE NEWSWIRE) – Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Health Aléafia“or the”Society“), a leader in cannabis-related wellness products and services, is pleased to announce the closing of a $ 10 million senior secured term (non-revolving) credit facility (the “Credit facility“).
“This credit facility gives us greater financial flexibility to pursue strategic opportunities and continue the strong sales growth achieved in our last quarter. This transaction improves our capital structure and provides a lower cost of capital which we believe directly benefits our shareholders, ”said Geoffrey Benic, CEO of Aleafia Health. “Our sales momentum across multiple categories of adult-use products, the continued scale-up of our medical cannabis ecosystem, and the short-term harvest of our largest outdoor cannabis crop to date set the stage. for a solid second semester of 2021. “
The full amount of the credit facility was drawn by the Company at closing. The credit facility has a term of 12 months, with an early repayment option, and bears interest at a rate of 12% per annum, with interest and principal being due at maturity. The outstanding amount of the Credit Facility, as well as accrued and unpaid interest thereon, may be repaid by the Company at any time and also include certain mandatory prepayment obligations at certain specified events. The credit facility is secured by first mortgages on production facilities in Paris, Ontario, and Grimsby, Ontario.
As partial consideration for the credit facility, the Company granted the lender 1,000,000 common share purchase warrants (the “Mandates“) of the company. Each warrant gives its holder the right to acquire one common share (each, one”Warrant share“) in the capital of the Company at an exercise price of $ 0.32, subject to adjustment in certain circumstances, until August 20, 2023. The warrants are acquired in equal installments of 250,000 warrants. subscription effective November 20, 2021, and every three (3) months thereafter, subject to adjustment in certain circumstances Warrants are transferable only to affiliates of the Lender.
The Toronto Stock Exchange has conditionally approved the listing of the shares subject to warrants issuable upon proper exercise of the warrants. The warrants and the shares covered by the warrants are subject to a legal hold period in accordance with applicable securities laws.
The net proceeds of the credit facility are expected to be used to support accretive growth initiatives, including improving product availability in the adult sector, accelerating the integration of new employer relationships into the As part of Unifor’s exclusive agreement, improving the operational efficiency of production lines at its manufacturing facility in Paris, Ontario, and for other general corporate purposes.
For investor and media relations:
Nicholas Bergamini, Vice President of Investor Relations
LEARN MORE: www.AleafiaHealth.com
About Aleafia Santé:
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company that provides cannabis-related health and wellness services and products in Canada. The Company has developed an international presence, with subsidiaries or investments in German and Australian medical cannabis companies and offers products in both markets. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners who have seen more than 75,000 patients to date.
Aleafia Health has three licensed cannabis production facilities and operates a distribution center strategically located throughout the province of Ontario, including the first large-scale legal outdoor grow facility in Canadian history. The Company produces a diverse portfolio of cannabis derivatives, including oils, capsules, edibles, sublingual strips and vapes, for sale in Canada in the medical and adult markets, and in certain international jurisdictions.
This press release contains forward-looking information within the meaning of applicable securities laws in Canada and the United States. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, ” intention ”,“ anticipates ”or“ does not anticipate ”, or“ believes ”or variations of these words and expressions or declares that certain actions, events or results“ could ”,“ could ”,“ would ”,“ could ”or“ would ”be taken, occur or be achieved. The specific forward-looking information contained in this press release includes information relating to, but not limited to, the Credit Facility, including the use of the net proceeds of the Credit Facility and the Warrants. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to differ materially from future results, performances or achievements expressed or under – understood by forward-looking information. information contained in this press release. The risks, uncertainties and other factors involved in forward-looking information could cause actual events, results, performances, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including the risks contained in the notice. Company’s annual filing with Canadian securities regulators is available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in the preparation of forward-looking information in this press release are reasonable, such information should not be relied on unduly and no assurance can be given that such events will occur in the future. the times disclosed or at all. The forward-looking information included in this press release is made as of the date of this press release and the Company does not undertake to publicly update such forward-looking information to reflect new information, subsequent events or otherwise, except as required. by the applicable securities. legislation.