Aleafia to Distribute Medical Cannabis, Provide Technical Expertise to CannaPacific
TORONTO, Nov. 02, 2018 (GLOBE NEWSWIRE) -- 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
Neither 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.