Aleafia Health announces Red White & Bloom as successful bidder in sale

Aleafia Health (ALEAF) announces that Red White & Bloom Brands (RWBYF) has been selected as the successful bidder pursuant to the Court-approved sale and investment solicitation process in connection with the previously announced proceedings of Aleafia and certain of its subsidiaries under the Companies’ Creditors Arrangement Act. On August 22, 2023, the Ontario Superior Court of Justice approved, among other matters, the terms of a SISP which included a stalking horse asset purchase and share subscription agreement pursuant to which RWB would acquire certain assets from Aleafia and subscribe for shares of certain subsidiaries of Aleafia if RWB were to become the successful bidder pursuant to the SISP. The Stalking Horse Agreement was approved by the Court in the context of the SISP, in order to establish the baseline consideration for the Corporation’s business and assets. In addition, Aleafia has entered into a definitive purchase agreement pursuant to which it has agreed to sell its Grimsby facility to a third-party purchaser, which asset was excluded from the RWB Transaction and marketed separately under the SISP. In accordance with the terms of the SISP, Aleafia will be seeking Court approval of the Sale Transactions in connection with the SISP and authority to consummate the transactions provided for therein at the approval hearing which will be held on October 27, 2023. If approved by the Court, closing of the RWB Transaction is expected to occur prior to November 22, 2023, and closing of the Property Sale is expected to occur prior to November 1, 2023.