Jul 6, 2020

Aphria issues shares to Emblem after settling supply dispute


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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.

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 were at $5.99 in late afternoon trading, up seven cents from Friday. Aleafia shares were down 3 cents at 47 cents.

Editor’s note: An earlier version of this story included incorrect information about a trading halt on Aleafia. BNN Bloomberg regrets the error.

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