Aphria issues shares to Emblem after reaching settlement in supply dispute

LEAMINGTON, Ont. — Aphria Inc. has issued more than 1.6 million common shares to Emblem Cannabis, a subsidiary of Aleafia Health, as part of a previously announced settlement.

Aphria signed a deal in 2018 that called for it to provide 175,000 kilograms of cannabis to Emblem over five years.

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Emblem later claimed that Aphria had not met its supply obligations and cancelled the agreement, kickstarting arbitration.

As part of their settlement, announced June 25, Emblem was to receive $10 million worth of stock, $15 million in cash and a waiver of claimed receivables.

Based on Monday trading prices, the 1.6 million shares issued by Aphria would be worth about $9.5 million.

Aphria shares closed at $5.98 in Monday trading, up 10 cents from Friday. Aleafia shares were down four cents or eight per cent to 46 cents.

This report by The Canadian Press was first published July 6, 2020.

Companies in this story: (TSX:APHA, TSX:AH)

Note to readers: This is a corrected story. A previous version stated that Aleafia shares have not been traded since June 1.

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