Aleafia Launches Global Expansion with Proposed Equity Stake in Australian Licensed Cannabis Company
November 02 2018 - 6:00AM
Aleafia to Distribute Medical Cannabis,
Provide Technical Expertise to CannaPacific
Aleafia Health Inc. (TSXV: ALEF: OTCQX: ALEAF, FRA: ARAH)
(“
Aleafia“) and CannaPacific Pty Ltd.
(“
CannaPacific”), together the
(“
Parties”), have signed a non-binding term sheet
in which, upon completion of the transaction, Aleafia will acquire
a 10 per cent equity stake in CannaPacific.
CannaPacific is a Licensed Australian Medical Cannabis company
based in Newcastle and the Macleay Valley on the mid-north coast of
NSW, Australia. As at the date of this Term Sheet, CannaPacific has
been granted licences to cultivate, produce and research medical
cannabis in Australia and has a 53,000 sq. ft. cannabis cultivation
and plant research facility currently under construction.
Under the term sheet, Aleafia will provide
CannaPacific with technical expertise in cannabis cultivation,
processing, distribution and medical clinic operations.
Transaction Highlights:
- Launch of Aleafia’s global expansion with foothold in budding
Australian medical cannabis market
- Future market access to Asia under free trade agreements
between Australia and major countries
- International distribution of white label medical cannabis
products
- Aleafia’s medical cannabis clinic and cultivation expertise to
be deployed by CannaPacific
- Cannabis starter genetics to begin cultivation in CannaPacific
cultivation facility
“This strategic investment in an emerging medical cannabis
market marks Aleafia’s first step towards a broader global
expansion,” said Aleafia Chairman Julian Fantino.
“We are extremely pleased to collaborate with CannaPacific, a
company with the team in place to quickly capture market share in
Australia,” said Aleafia CEO Geoffrey Benic. “This transaction,
once completed, will place Aleafia at the epicentre of what we
expect will be a major growth centre in the global medical cannabis
market.”
“We are delighted to be partnering with Aleafia,” said
CannaPacific CEO Joshua Dennis. “There are clear synergies between
the two companies that will create long term, sustainable value in
the Australasian market as we capitalize together on changes in the
local regulatory environment. This will allow medical cannabis to
play a vital role in lowering the disease burden on patients.”
The transaction is subject to the entering into
of definitive agreements, due diligence and, if applicable, TSX
Venture Exchange approvals.
Aleafia Operational Update:
- 160,000 sq. ft. Niagara greenhouse retrofitting on
schedule and expected to be complete in late 2018
- Fully funded annual growing capacity of 98,000 kg of cannabis
flower in 2019
- Signed supply agreement for CannTrust Holdings Inc. to
purchase up to 15,000 kg of cannabis from Aleafia in 2019
- Reached milestone of 50,000 medical patients under the Canabo
Medical Clinic network
- Local approval for a 30-acre, 60,000 kg secure
outdoor grow expansion at our Port Perry cultivation facility
- Secured first medical cannabis sale in company’s history,
only days after securing Sales Licence from Health
Canada
- Added to Horizons Marijuana Life Sciences ETF, the largest
cannabis ETF in the world
- Submitted application to list common shares on the NASDAQ
stock exchange
About Aleafia:
Aleafia is a vertically integrated, national cannabis company
with major medical clinic, cannabis cultivation and R&D
operations. The company is a federally licensed producer and vendor
of cannabis and will reach an annual production capacity of 98,000
kg of dried cannabis in 2019.
Aleafia operates 22 medical cannabis clinics staffed by
physicians and nurse practitioners, with over 50,000 patients. The
company is highly differentiated, maintaining the largest medical
cannabis dataset in the world with significant intellectual
property holdings and current R&D operations.
About CannaPacific:
CannaPacific is a licensed Medical Cannabis Company based in
Newcastle and the Macleay Valley on the mid-north coast of New
South Wales (NSW), Australia.CannaPacific has been granted licenses
to cultivate and research medical cannabis in Australia and is in
the process of constructing a 53,000 sq. ft. greenhouse cultivation
and research facility. This project will position CannaPacific as a
high-quality low-cost Australian producer. The CannaPacific Team
comprises experts in the medical, clinical trials, plant Science,
technology and pharmaceutical industries with vast experience and
world class capability from the opiates and related industries.
For more information visit www.cannapacific.com.au.
For Investor & Media Relations, please
contact:Nicholas Bergamini, VP Public Affairs
IR@AleafiaInc.com
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(as that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this
release. FORWARD LOOKING
INFORMATION This press release contains
forward-looking statements and information that are based on the
beliefs of management and reflect the Company's current
expectations. When used in this press release, the words
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words or such variations thereon or comparable terminology are
intended to identify forward-looking statements and information.
The forward-looking statements and information in this press
release includes information relating to the implementation of
Aleafia Health's business plan. Such statements and information
reflect the current view of the Company with respect to risks and
uncertainties that may cause actual results to differ materially
from those contemplated in those forward-looking statements and
information. By their nature, forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause our actual results, performance or achievements, or
other future events, to be materially different from any future
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forward-looking statements. Such factors include, among others, the
following risks: risks associated with the implementation of
Aleafia Health's business plan and matters relating thereto, risks
associated with the cannabis industry, competition, regulatory
change, the need for additional financing, reliance on key
personnel, the potential for conflicts of interest among certain
officers or directors, and the volatility of the Company's common
share price and volume. Forward-looking statements are made based
on management's beliefs, estimates and opinions on the date that
statements are made and the Company undertakes no obligation to
update forward-looking statements if these beliefs, estimates and
opinions or other circumstances should change. Investors are
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