Aleafia Closes Transactions with Serruya Private Equity
November 23 2018 - 6:00AM
Transactions Positions Aleafia as Major
Supplier, Retailer of Adult-use Cannabis
Aleafia Health Inc. (TSXV: ALEF; OTCQX: ALEAF, FRA: ARAH)
(“Aleafia“ or the “Company“) is pleased to announce that the
previously announced joint venture and financing transactions with
Serruya Private Equity (“Serruya”) have closed.
“We look forward to immediately executing on our
shared vision of building and scaling a retail cannabis network
with immediate national reach and global expansion plans,” said
Aaron Serruya, a principal of SPE. “We are very excited to once
again play an early role in developing one of the world’s largest
cannabis companies.”
“Aleafia made a firm commitment to launch a
national adult-use cannabis division with global ambitions. With
final approvals now in place, we have delivered on that
commitment,” said Aleafia CEO Geoffrey Benic. “With commercially
proven brands and global retailing expertise, we believe our
partnership with Serruya will provide significant value to our
shareholders.”
Additional Highlights:
- Backed and supported with a $10 million investment by Serruya
and its affiliate, International Franchise Inc., which has over
4500 quick service restaurant locations in over 50 countries
- Serruya has also been a leading early cannabis industry force
as cannabis industry investors in both emerging and established
issuers and other industry participants
- Launch approximately 20 proposed retail outlets, with a
subsequent national and international expansion plan (excluding the
U.S.)
- With turn-key store launch, licensing agreements cover
established, commercially proven international cannabis brands
- Ready-made store design and retail systems in place, along with
intellectual property including genetics and packaging
The closing formalizes Aleafia’s acquisition of
a 51 per cent interest in Flying High Brands Inc., a domestic and
international cannabis brands joint-venture (“Flying High”) and a
9.9 per cent interest in One Plant (Retail) Corp. a Canada-wide
cannabis retail joint venture (“One Plant”).
The closing also marks the completion of
Serruya’s $10 million (CAD) strategic investment into Aleafia (by
way of the purchase of 5 million common shares at $2.00 per common
share) and the completion of Aleafia’s $1 million (CAD) investment
in Flying High and $4 million (CAD) investment in One Plant.
Aleafia purchased its 51 per cent interest in Flying High, in part,
by the issuance of 6 million common shares to Serruya.
For Investor & Media Relations, please
contact:
Nicholas Bergamini, VP, Public Affairs IR@AleafiaInc.com
About Aleafia Health Inc.:
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.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (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 "estimate", "project",
"belief", "anticipate", "intend", "expect", "plan", "predict",
"may" or "should" and the negative of these 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
results, performance or achievements expressed or implied by such
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
cautioned against attributing undue certainty to forward-looking
statements.
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