LEAMINGTON, ON, June 25, 2020 /PRNewswire/ - Aphria Inc.
("Aphria") (TSX: APHA and NASDAQ: APHA), a leading
global cannabis company, Emblem Cannabis Corporation
("Emblem"), and Aleafia Health Inc. (TSX: AH, OTC: ALEAF)
("Aleafia Health") today announced the parties entered into
a settlement agreement on June 25,
2020 (the "Settlement Agreement") to resolve their
outstanding dispute in respect of the termination of the parties'
wholesale cannabis supply agreement (the "Supply
Agreement").
Under the terms of the Settlement Agreement, Emblem shall
receive total consideration of C$29,100,000 comprised of a C$15,500,000 cash payment, the issuance of common
shares of Aphria with an aggregate market value of
C$10,000,000 that will be freely
tradeable and transferable in Canada and waiver of claimed receivables. The
parties have also agreed to a mutual release of all existing and
potential claims, and to the dismissal of the arbitration
proceedings that had previously been commenced.
"We are pleased to have arrived at an amicable resolution to
this matter," said Irwin D. Simon,
Chief Executive Officer, Aphria Inc. "Today's settlement
announcement allows all of us to avoid unnecessary distraction and
the potential expense of prolonged litigation, and importantly, to
continue to focus on the future."
This settlement ends any and all potential claims and litigation
against and between Aphria, Emblem, and Aleafia Health relating to
the Supply Agreement.
About Aphria
Aphria Inc. is a leading global cannabis company driven by an
unrelenting commitment to our people, the planet, product quality
and innovation. Headquartered in Leamington, Ontario – the greenhouse capital
of Canada – Aphria Inc. has been
setting the standard for the low-cost production of high-quality
cannabis at scale, grown in the most natural conditions possible.
Focusing on untapped opportunities and backed by the latest
technologies, Aphria Inc. is committed to bringing breakthrough
innovation to the global cannabis market. The Company's portfolio
of brands is grounded in expertly-researched consumer insights
designed to meet the needs of every consumer segment. Rooted in our
founders' multi-generational expertise in commercial agriculture,
Aphria Inc. drives sustainable long-term shareholder value through
a diversified approach to innovation, strategic partnerships and
global expansion.
For more information, visit: aphriainc.com
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain
information in this news release constitutes forward-looking
statements under applicable securities laws and are expressly
qualified by this cautionary statement. Any statements that are
contained in this news release that are not statements of
historical fact may be deemed to be forward-looking statements.
Forward looking statements are often identified by terms such as
"may", "should", "anticipate", "expect", "potential", "believe",
"intend" or the negative of these terms and similar expressions.
Forward-looking statements are based on the opinions, estimates and
perception of trends of management and its beliefs with respect to
future events, as at the date the statements are made, and are
subject to a variety of risks and uncertainties and other factors
that could cause actual events or results to differ materially from
those projected in the forward-looking statements. Factors that may
cause such differences include, but are not limited to, risks
associated with COVID-19 nationally and globally which could have a
material adverse impact on Aphria's business, operations and
financial results, including disruptions in cultivation and
processing, supply chains and sales channels, as well as a
deterioration of general economic conditions including national
and/or global recessions and the response of governments to the
COVID-19 pandemic in respect of the operation of retail stores;
general economic conditions; adverse industry events; marketing
costs; loss of markets; future legislative and regulatory
developments involving cannabis or otherwise affecting Aphria's
business or its consumers generally; inability to access sufficient
capital from internal and external sources, and/or inability to
access sufficient capital on favorable terms; the cannabis industry
in Canada generally; income tax
and regulatory matters, including delays in the issuance of
licenses; the sale and distribution of vapes; the ability of Aphria
to meet its liquidity requirements to fund ongoing operations; the
ability of Aphria to implement its business strategies;
competition; crop failure; safety of derivative cannabis products;
currency and interest rate fluctuations.
Readers are cautioned that the foregoing list is not exhaustive
and should carefully review the various risks and uncertainties
identified in the Company's filings on SEDAR and EDGAR. Readers are
further cautioned not to place undue reliance on forward-looking
statements as there can be no assurance that the plans, intentions
or expectations upon which they are placed will occur. Such
information, although considered reasonable by management at the
time of preparation, may prove to be incorrect and actual results
may differ materially from those anticipated.'
The forward-looking statements included in this news release are
made as of the date of this news release and the Company does not
undertake an obligation to publicly update such forward-looking
statements to reflect new information, subsequent events or
otherwise unless required by applicable securities laws.
Neither TSX nor its Regulation Services Provider (as that term is
defined in the policies of Toronto Stock Exchange) accepts
responsibility for the adequacy or accuracy of this release.
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SOURCE Aphria Inc.