Aleafia Health Provides Further Update on its Convertible Debt

Rhea-AI Summary

Aleafia Health has announced an extension of the Forbearance Period for its unsecured convertible debentures until April 11, 2022. This decision involves holders representing approximately 62% of the total debentures, allowing negotiations on amending the terms of the Convertible Debt to continue. While no assurances can be made regarding the outcome, the company expresses optimism about reaching a beneficial agreement for stakeholders. The Convertible Debt was issued on June 27, 2019, and is set to mature on June 27, 2022.

Positive

• 62% of convertible debenture holders agreed to extend the Forbearance Period until April 11, 2022, facilitating ongoing negotiations.
• The company believes progress is being made towards a beneficial solution regarding the Convertible Debt.

Negative

• No concrete assurances regarding the outcome of the negotiations, which could lead to financial instability if unresolved.
• The Convertible Debt is set to mature on June 27, 2022, with uncertainty surrounding its restructuring.

• Holders representing approximately 62% of total Debentures extend Forbearance Period until April 11, 2022 to allow negotiations to continue
  

TORONTO, March 29, 2022 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSX: AH, AH.DB, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is providing a corporate update regarding its outstanding listed unsecured convertible debentures (TSX: AH.DB), issued on June 27, 2019 and maturing on June 27, 2022 (the “Convertible Debt”).

Further to the Company’s announcements on February 1, March 1 and March 16, 2022, the Forbearance Agreement, entered into between the Company and holders of Convertible Debt representing approximately 62% of the aggregate principal amount of debentures outstanding, has been extended until April 11, 2022. The Agreement automatically renews for 14-day periods thereafter unless advance notice to the contrary is provided.

The parties continue to work expeditiously and in good faith to negotiate a potential transaction to amend the terms associated with the Convertible Debt. While there can be no assurances regarding any outcome, the Company believes progress is being made towards a solution that is beneficial to its stakeholders.

For Investor & Media Relations:

1-833-879-2533

IR@AleafiaHealth.com

LEARN MORE: www.AleafiaHealth.com

About Aleafia Health:

Aleafia Health, a vertically integrated and federally licensed Canadian cannabis company, owns three licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history, and operates a strategically located distribution centre, all in the province of Ontario. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the adult-use and medical markets and is pursuing opportunities in select international jurisdictions. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners.

Forward Looking Information

This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. 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 be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

FAQ

What is the Forbearance Period extension for Aleafia Health’s convertible debentures?

The Forbearance Period has been extended until April 11, 2022, allowing for ongoing negotiations.

What percentage of Aleafia Health's debenture holders agreed to the Forbearance extension?

Approximately 62% of the total debenture holders agreed to the extension.

When was the convertible debt issued by Aleafia Health?

The convertible debt was issued on June 27, 2019.

What is the maturity date of Aleafia Health’s convertible debt?

The convertible debt is set to mature on June 27, 2022.

What does Aleafia Health hope to achieve with the Forbearance Agreement?

The company aims to negotiate amendments to the terms of the Convertible Debt that are beneficial to its stakeholders.