On Jan. 18, 2019, Aleafia Health Inc. (TSXV: ALEF) (OTCQX: ALEAF) (FRA: ARAH) closed its previously announced investment in CannaPacific Pty Limited, a federally licensed Australian medical cannabis company located in New South Wales, Australia.
The transaction was completed pursuant to the terms of an Investment Agreement dated January 17, 2019 between CannaPacific, Aleafia Health and CannaPacific's founder shareholder. Under the Investment Agreement, Aleafia acquired 10% of the ordinary shares of CannaPacific from the Founder for AUS$100 and Aleafia agreed to contribute to CannaPacific US$150,000 in working capital in two tranches of US$75,000 over a six month period. Aleafia also acceded to CannaPacific's Shareholders Agreement. The TSX Venture Exchange consented to the investment on January 16, 2019.
Aleafia is a vertically integrated, national cannabis health and wellness company with major medical clinic, cannabis cultivation and R&D operations. The company is a federally licensed producer and vendor of cannabis and will reach an annual production capacity of 98,000 kg of dried cannabis in 2019. Aleafia operates medical cannabis clinics staffed by physicians and nurse practitioners, with over 50,000 patients. The company is highly differentiated, maintaining the largest medical cannabis dataset in the world.
Jason Saltzman of Gowling WLG advised Aleafia with respect to this acquisition.
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