NEWS BRIEF

Aleafia, Aphria settle dispute over supply deal for CA$29.1 million

Canadian cannabis producers Aleafia Health and Aphria have settled a dispute over a supply deal gone wrong.

In 2018, Emblem Cannabis signed a deal in  which Aphria would provide 175,000 kilograms (38,580 pounds) of cannabis over five years, beginning in May 2019.

Emblem was subsequently acquired by Aleafia.

Aleafia canceled the agreement in August 2019, saying Aphria had failed to meet its supply obligations.

The settlement announced Thursday is worth 29.1 million Canadian dollars ($21.3 million), including CA$15.5 million in cash and $10 million worth of Aphria shares, according to a news release.

All claims related to the supply agreement are being released, and arbitration proceedings have been dismissed.

“The settlement agreement is fair and satisfactory to both parties and allows Aleafia Health to move forward with a significantly strengthened balance sheet,” Aleafia CEO Geoffrey Benic said in a statement.

Aphria trades as APHA on the Nasdaq and the Toronto Stock Exchange.

Aleafia trades on the Toronto Venture Exchange as ALEF.

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