Court OKs stalking-horse bid for distressed marijuana operator Aleafia

Marijuana multistate operator Red White & Bloom’s plan to acquire distressed Canadian company Aleafia Health is back on the table.

The Ontario Superior Court of Justice approved the MSO’s stalking-horse bid for Aleafia, according to a news release.

Aleafia Health filed for creditor protection in July after a merger between the two companies failed.

The deal includes asset purchases and a share subscription agreement if Red White & Bloom is the successful bidder – which is not guaranteed.

The agreement also includes:

• A release of all outstanding amounts and obligations payable by the Aleafia Group under the loan agreement made as of Dec. 24, 2021, and all related loan and security documentation, which amounts to more than $15 million.
• A release of all outstanding amounts and obligations payable by the Aleafia Group as of the closing date pursuant to the debtor-in-possession financing of up to $6.6 million.
• $400,000 in cash.
• $1.25 million for legal costs.
• $2.85 million for officers’ and directors’ costs.
• More than $5.9 million for the secured lender, a numbered company.
• An amount to satisfy any remaining priority payments as of the closing date as required under the Companies’ Creditors Arrangement Act.

Toronto-based multistate operator Red White & Bloom announced its plans to acquire Aleafia in a share-exchange agreement in June.

The companies called off the merger on July 14 after some of Aleafia’s debt holders declined to accept the terms of a proposed settlement agreement.

Red White & Bloom operates in such U.S. markets as Arizona, California, Florida, Illinois, Massachusetts and Michigan.

Source: https://mjbizdaily.com/court-oks-stalking-horse-bid-for-distressed-marijuana-operator-aleafia/