TORONTO, Nov. 02, 2018 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Aleafia Health Inc. and CannaPacific Pty Ltd. have signed a non-binding term sheet in which, upon completion of the transaction, Aleafia will acquire a 10-percent 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-square-foot 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 epicenter of what we expect will be a major growth center 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-square-foot 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
- Submitted application to list common shares on the NASDAQ stock exchange
