Aleafia Health Announces Extension of Forbearance Under Loan Agreement With Senior Lender

TORONTO, June 01, 2023 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSX: AH, OTCQB: ALEAF) ("Aleafia Health" or the "Company") announces that the Company has entered into a forbearance agreement with NE SPC II LP ("NE SPC") extending the forbearance period under its loan agreement with NE SPC until June 5, 2023. The forbearance agreement comes in light of ongoing negotiations between the Company, NE SPC and a potential alternative lender regarding a potential refinancing of the indebtedness existing under the Company's loan agreement with NE SPC dated December 24, 2021 and as previously amended by agreements dated March 28, 2022, June 17, 2022, and May 15, 2023 (the "Loan Agreement"). 

As previously disclosed by the Company, NE SPC recently agreed to amend the terms of the Loan Agreement and to forbear from enforcing its rights under the Loan Agreement until the earlier of (a) an event of default, or (b) May 31, 2023.

No decisions relating to any potential refinancing have been made as at the date of this news release and the Company does not intend to comment further with respect to a potential refinancing, or any other transaction which may result from the strategic review process announced by the Company on May 25, 2023, unless and until it determines that additional disclosure is appropriate in the circumstances and in accordance with applicable securities laws.

For Investor & Media Relations

Matthew Sale, CFO
[email protected]
LEARN MORE: www.AleafiaHealth.com

About Aleafia Health:

The Company is a federally licensed Canadian cannabis company offering cannabis products in Canadian adult-use and medical markets and in select international markets, including Australia and Germany. The Company operates a virtual medical cannabis clinic staffed by physicians and nurse practitioners which provide health and wellness services across Canada.

The Company owns three licensed cannabis production facilities and operates a strategically located distribution centre all in the province of Ontario, including the largest, outdoor cannabis cultivation facility in Canada. The Company produces a diverse portfolio of cannabis and cannabis derivative products including dried flower, pre-roll, milled, vapes, oils, capsules, edibles, sublingual strips and topicals.

Cautionary Note Regarding Forward-Looking Statements

Certain statements herein relating to the Company constitute "forward-looking information" within the meaning of applicable securities laws. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates", "believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or "could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. In this news release, forward-looking statements relate to, among other things, statements regarding: the ability of the Company, NE SPC and the potential alternative lender to successfully negotiate a potential refinancing, the potential results and timing of the Company's strategic review process, and the potential structure and timing of one or more potential transactions which may result from that process. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; the inability of the Company to obtain adequate financing; the delay or failure to receive regulatory approvals; and other factors discussed in the Company's filings, available on the SEDAR website at www.sedar.com. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Except as required by law, the Company assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.