Aleafia Health Provides Further Update on its Convertible Debt

Rhea-AI Summary

Aleafia Health (OTCQX: ALEAF) has extended the Forbearance Period on its unsecured convertible debentures until March 14, 2022. This extension follows previous agreements with holders representing approximately 62% of the total debentures. The Convertible Debt, originally issued on June 27, 2019, is set to mature on June 27, 2022. The Company and debt holders continue to negotiate amendments to the terms of the debt in good faith.

Positive

• None.

Negative

• Ongoing negotiations on convertible debt may indicate financial instability.
• The two extensions of the forbearance period suggest challenges in meeting debt obligations.

Holders representing approximately 62% of total Debentures extend Forbearance Period until March 14, 2022 to allow negotiations to continue

TORONTO, March 01, 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 announcement on February 1, 2022, the Forbearance Agreement, entered into between the Company and holders of Convertible Debt representing approximately 58% of the aggregate principal amount of debentures outstanding, has been extended until March 14, 2022. The holders of Convertible Debt representing an additional 4% of the aggregate principal amount of debentures outstanding have subsequently entered into the Forbearance Agreement. The Agreement automatically renews for 14-day periods thereafter unless advance notice to the contrary is provided.

The parties have continued to work expeditiously and in good faith to negotiate a potential transaction to amend the terms associated with the Convertible Debt.

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 March 14, 2022, allowing continued negotiations.

What percentage of Aleafia Health's debentures is covered by the forbearance agreement?

The forbearance agreement covers approximately 62% of the total outstanding debentures.

When did Aleafia Health issue its convertible debentures?

Aleafia Health issued its convertible debentures on June 27, 2019.

When do Aleafia Health's convertible debentures mature?

The convertible debentures are set to mature on June 27, 2022.