This Marijuana Stock Takes A Dive Following Breach Of Financial Covenants Under Its Loan Agreement
Portfolio Pulse from Vuk Zdinjak
Aleafia Health Inc. (OTCQB:ALEAF) (TSX:AH) has amended its loan agreement with NE SPC II LP, which has agreed to forbear on enforcing the loan until May 31, 2023. The company is currently in breach of certain financial covenants under the loan agreement. Aleafia Health's board has commenced a strategic review process to explore potential strategic alternatives.
May 25, 2023 | 3:05 pm
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Aleafia Health amends loan agreement and breaches financial covenants, leading to a 19.14% drop in share price.
Aleafia Health has breached financial covenants under its loan agreement with NE SPC II LP, which has led to an amendment in the loan terms. This news has negatively impacted the company's share price, causing it to drop 19.14%. The company's board has also commenced a strategic review process to explore potential strategic alternatives, which may lead to further uncertainty in the short term.
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IMPORTANCE 80
RELEVANCE 100