Aleafia Health Provides Further Update on its Convertible Debt
Entered into Forbearance Agreement with Holders representing 58% of total Debentures
Negotiating a potential transaction to amend the Convertible Debt terms for all debenture holders
TORONTO – February 1, 2022 – Aleafia Health Inc. (TSX: AH, AH.DB, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is providing a corporate update regarding its outstanding listed unsecured convertible debentures (TSX: AH.DB), issued on June 27, 2019 and maturing on June 27, 2022 (the “Convertible Debt”).
Further to the Company’s announcement on January 4, 2022, Aleafia Health is advancing towards achieving a beneficial outcome for all its stakeholders.
The Company has entered into a Forbearance Agreement (the “Forbearance Agreement”) with Debenture holders representing 58% of the Debentures’ aggregate principal amount outstanding (the “Holders”). An ad hoc Steering Committee comprised of certain Debentureholders, and represented by Bennett Jones, has been established that will help facilitate ongoing negotiations surrounding the Convertible Debt. The Forbearance Agreement’s initial term extends to February 28, 2022, and the agreement automatically renews for 14-day periods thereafter unless notice to the contrary is provided (the “Term”).
Under the Forbearance Agreement, the Holders, among other considerations, forebear in enforcing their rights or remedies against the Company under the Indenture and otherwise at law with respect to the non-payment of interest until the expiry of the Term. The Company, in turn, has agreed to certain customary and standard covenants regarding carrying on business in the ordinary course during the Term.
Under the Forbearance Agreement, the Holders and the Company have agreed to work expeditiously and in good faith to negotiate a potential transaction to amend the terms associated with the Convertible Debt. There can be no assurance that the negotiations will result in a transaction.
For Investor & Media Relations:
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
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