TORONTO, June 24, 2022 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) ("Aleafia Health" or the "Company") is pleased to announce that it has closed its previously announced private placement (the "Private Placement") representing aggregate gross proceeds of approximately $5.6 million.
Pursuant to the Private Placement, an aggregate of 68,151,515 units were issued at a price of $0.0825 per unit, with each unit consisting of one common share in the capital of the Company and one-half of one common share purchase warrant. Each warrant is exercisable into one common share at an exercise price of $0.1025 until June 24, 2026. The expiry date of the warrants can be accelerated by the Company at any time and upon 30 days' notice, if the closing price of the common shares on the Toronto Stock Exchange is greater than $0.165 for any 10 consecutive trading days following the date that is 4 months and one day after the date hereof and prior to the expiry date of the warrants.
The net proceeds from the Private Placement will be used to fund working capital and capital expenditures for the Company's continued growth, and other general corporate purposes.
"The closing of the private placement is a significant milestone for Aleafia, providing funding to support our growth plans, and satisfying a main condition for the amendment of the Company's convertible debentures," said Aleafia Health CEO Tricia Symmes.
For Investor & Media Relations:
Matthew Sale, CFO
LEARN MORE: www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health, a vertically integrated and federally licensed Canadian cannabis company, owns three licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history, and operates a strategically located distribution centre, all in the province of Ontario. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the adult-use and medical markets and is pursuing opportunities in select international jurisdictions. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as "plans", "expects", "estimates", "intends", "anticipates", or "believes" or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties, and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company's annual information form filed with Canadian securities regulators available on the Company's SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward- looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
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