Aleafia to Distribute Medical Cannabis, Provide Technical Expertise to CannaPacific
TORONTO, November 2, 2018 /Globe Newswire/ –Aleafia Health Inc. (TSXV: ALEF: OTCQX: ALEAF, FRA: ARAH) (“Aleafia“) and CannaPacific Pty Ltd. (“CannaPacific”), together the (“Parties”), have signed a non-binding term sheet in which, upon completion of the transaction, Aleafia will acquire a 10 per cent equity stake in CannaPacific.
CannaPacific is a Licensed Australian Medical Cannabis company based in Newcastle and the Macleay Valley on the mid-north coast of NSW, Australia. As at the date of this Term Sheet, CannaPacific has been granted licences to cultivate, produce and research medical cannabis in Australia and has a 53,000 sq. ft. cannabis cultivation and plant research facility currently under construction.
Under the term sheet, Aleafia will provide CannaPacific with technical expertise in cannabis cultivation, processing, distribution and medical clinic operations.
- Launch of Aleafia’s global expansion with foothold in budding Australian medical cannabis market
- Future market access to Asia under free trade agreements between Australia and major countries
- International distribution of white label medical cannabis products
- Aleafia’s medical cannabis clinic and cultivation expertise to be deployed by CannaPacific
- Cannabis starter genetics to begin cultivation in CannaPacific cultivation facility
“This strategic investment in an emerging medical cannabis market marks Aleafia’s first step towards a broader global expansion,” said Aleafia Chairman Julian Fantino.
“We are extremely pleased to collaborate with CannaPacific, a company with the team in place to quickly capture market share in Australia,” said Aleafia CEO Geoffrey Benic. “This transaction, once completed, will place Aleafia at the epicentre of what we expect will be a major growth centre in the global medical cannabis market.”
“We are delighted to be partnering with Aleafia,” said CannaPacific CEO Joshua Dennis. “There are clear synergies between the two companies that will create long term, sustainable value in the Australasian market as we capitalize together on changes in the local regulatory environment. This will allow medical cannabis to play a vital role in lowering the disease burden on patients.”
The transaction is subject to the entering into of definitive agreements, due diligence and, if applicable, TSX Venture Exchange approvals.
Aleafia Operational Update:
- 160,000 sq. ft. Niagara greenhouse retrofitting on schedule and expected to be complete in late 2018
- Fully funded annual growing capacity of 98,000 kg of cannabis flower in 2019
- Signed supply agreement for CannTrust Holdings Inc. to purchase up to 15,000 kg of cannabis from Aleafia in 2019
- Reached milestone of 50,000 medical patients under the Canabo Medical Clinic network
- Local approval for a 30-acre, 60,000 kg secure outdoor grow expansion at our Port Perry cultivation facility
- Secured first medical cannabis sale in company’s history, only days after securing Sales Licence from Health Canada
- Added to Horizons Marijuana Life Sciences ETF, the largest cannabis ETF in the world
- Submitted application to list common shares on the NASDAQ stock exchange
Aleafia is a vertically integrated, national cannabis 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 22 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 with significant intellectual property holdings and current R&D operations.
CannaPacific is a licensed Medical Cannabis Company based in Newcastle and the Macleay Valley on the mid-north coast of New South Wales (NSW), Australia.
CannaPacific has been granted licenses to cultivate and research medical cannabis in Australia and is in the process of constructing a 53,000 sq. ft. greenhouse cultivation and research facility. This project will position CannaPacific as a high-quality low-cost Australian producer. The CannaPacific Team comprises experts in the medical, clinical trials, plant Science, technology and pharmaceutical industries with vast experience and world class capability from the opiates and related industries.
For more information visit www.cannapacific.com.au.
For Investor & Media Relations, please contact:
Nicholas Bergamini, VP Public Affairs
The Cannabis Investor is a leading media outlet for Cannabis investment opportunities and breaking industry news.
Join our text message list:
USA: Text potstocks to 313131 to join
CDN: Text potstocks to 393939 to join
Join our email list here: http://eepurl.com/bUSa71
Follow The Cannabis Investor on Social Media