Aleafia Health Obtains Creditor Protection To Pursue Restructuring And Sale Process
Portfolio Pulse from Vuk Zdinjak
Aleafia Health Inc. has obtained creditor protection to pursue restructuring and sale process. Red White & Bloom Brands Inc. has provided an update on Aleafia's indebtedness in connection with a loan agreement. Aleafia has received an order from the Ontario Superior Court of Justice to restructure its business and financial affairs. RWB agreed to advance debtor-in-possession financing to fund Aleafia's proceedings and other short-term working capital requirements. Aleafia was in breach of certain covenants under the senior secured loan agreement, and the proposed transaction between the parties had been mutually terminated.

July 25, 2023 | 2:25 pm
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Aleafia Health has obtained creditor protection and is restructuring its business and financial affairs. It was in breach of certain covenants under the senior secured loan agreement.
The news of Aleafia Health obtaining creditor protection and restructuring its business and financial affairs is directly related to the company. The breach of certain covenants under the senior secured loan agreement could negatively impact the company's stock price in the short term.
CONFIDENCE 100
IMPORTANCE 100
RELEVANCE 100
NEUTRAL IMPACT
Red White & Bloom Brands Inc. has provided an update on Aleafia's indebtedness and agreed to advance debtor-in-possession financing to fund Aleafia's proceedings.
Red White & Bloom Brands Inc.'s decision to advance debtor-in-possession financing to Aleafia could have a neutral impact on its stock price in the short term. The company's involvement in Aleafia's restructuring process could have potential implications in the future.
CONFIDENCE 100
IMPORTANCE 75
RELEVANCE 75