Aleafia Health Provides Further Update on its Convertible Debt

Rhea-AI Summary

Aleafia Health has announced that holders representing approximately 62% of its total Debentures have agreed to extend the Forbearance Period until April 26, 2022. This extension allows for ongoing negotiations regarding the company's Convertible Debt, which was initially issued on June 27, 2019 and due on June 27, 2022. The Forbearance Agreement will automatically renew for 14-day periods unless otherwise notified. The company is optimistic about the potential positive outcome of these negotiations.

Positive

• 62% of debenture holders agree to extend forbearance period, indicating support.
• Negotiations for amending Convertible Debt terms are ongoing, showing active engagement.

Negative

• Uncertainty around finalization of amendments to Convertible Debt terms.
• Possible risks related to ongoing debt negotiations could affect financial stability.

• Holders representing approximately 62% of total Debentures extend Forbearance Period until April 26, 2022 to allow negotiations to continue
  

TORONTO, April 11, 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, and March 1, 16, and 31, 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 26, 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 current status of Aleafia Health's Convertible Debt negotiations?

As of April 11, 2022, a Forbearance Agreement has been extended until April 26, 2022, allowing ongoing negotiations.

How much of Aleafia Health's debentures are represented in the forbearance agreement?

Approximately 62% of the total Debentures are represented in the forbearance agreement.

What is the maturity date for Aleafia Health's unsecured convertible debentures?

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

What actions is Aleafia Health taking regarding its outstanding convertible debentures?

Aleafia Health is engaged in negotiations to amend the terms associated with its Convertible Debt.

When was the Forbearance Agreement originally established for Aleafia Health?

The Forbearance Agreement was initially established prior to April 11, 2022, with previous updates on February 1, March 1, 16, and 31, 2022.