Trichomes on marijuana plants are shown in an undated handout photo provided by Aphria. Aphria Inc. has reached a deal worth $29.1 million to settle a dispute with Emblem Cannabis Corp. and Aleafia Health Inc. THE CANADIAN PRESS/HO-Aphria *MANDATORY CREDIT*
June 25, 2020 - 7:55 AM
LEAMINGTON, Ont. - Aphria Inc. has reached a deal worth $29.1 million to settle a dispute with Emblem Cannabis Corp. and Aleafia Health Inc.
The settlement ends a disagreement the companies had over Aleafia's decision in 2019 to cancel a supply agreement it had with Aphria.
Aphria CEO Irwin Simon says the deal allows the companies to avoid the distraction and the potential expense of prolonged litigation.
Under the agreement, Emblem, which was acquired by Aleafia in 2019, will receive $15 million in cash, $10 million in Aphria shares and a waiver of claimed receivables.
The companies also agreed to a mutual release of all existing and potential claims and the dismissal of arbitration proceedings that had begun.
Aleafia Health CEO Geoff Benic called the agreement fair to both sides and says it allows his company to move forward with a significantly strengthened balance sheet.
This report by The Canadian Press was first published June 25, 2020.
Companies in this story: (TSX:APHA, TSX:AH)
News from © The Canadian Press, 2020