Aleafia Closes Transactions With Serruya Private Equity

TORONTO, Nov. 23, 2018 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Aleafia Health Inc. has announced that the previously announced joint venture and financing transactions with Serruya Private Equity have closed.

“We look forward to immediately executing on our shared vision of building and scaling a retail cannabis network with immediate national reach and global expansion plans,” said Aaron Serruya, a principal of SPE. “We are very excited to once again play an early role in developing one of the world’s largest cannabis companies.”

“Aleafia made a firm commitment to launch a national adult-use cannabis division with global ambitions. With final approvals now in place, we have delivered on that commitment,” said Aleafia CEO Geoffrey Benic. “With commercially proven brands and global retailing expertise, we believe our partnership with Serruya will provide significant value to our shareholders.”

Additional Highlights:

• Backed and supported with a $10 million investment by Serruya and its affiliate, International Franchise Inc., which has over 4,500 quick service restaurant locations in over 50 countries
• Serruya has also been an early cannabis industry force as cannabis industry investors in both emerging and established issuers and other industry participants
• Launch approximately 20 proposed retail outlets, with a subsequent national and international expansion plan (excluding the U.S.)
• With turn-key store launch, licensing agreements cover established, commercially proven international cannabis brands
• Ready-made store design and retail systems in place, along with intellectual property including genetics and packaging

The closing formalizes Aleafia’s acquisition of a 51 percent interest in Flying High Brands Inc., a domestic and international cannabis brands joint-venture and a 9.9 percent interest in One Plant (Retail) Corp. a Canada-wide cannabis retail joint venture.

The closing also marks the completion of Serruya’s $10 million (CAD) strategic investment into Aleafia (by way of the purchase of 5 million common shares at $2.00 per common share) and the completion of Aleafia’s $1 million (CAD) investment in Flying High and $4 million (CAD) investment in One Plant. Aleafia purchased its 51 percent interest in Flying High, in part, by the issuance of 6 million common shares to Serruya.