Canadian cannabis producer Aleafia Health has launched a strategic review process to determine the company’s options as it amends the terms of a loan from lender NE SPC II.
Aleafia is currently in breach of the loan’s financial covenants, according to a Thursday news release.
The loan was previously payable on demand, but NE SPC II has now agreed “to forbear on enforcing the loan agreement” until May 31, or until Aleafia defaults, whichever comes earlier.
With the May 31 deadline approaching, Aleafia has launched a strategic review “with the goal of maximizing value for Aleafia Health shareholders and other stakeholders.”
Possibilities could include refinancing the debt, selling all or some of Aleafia’s assets, seeking a business combination, new financing, or a strategic investment.
The loan. signed in December 2021, was originally worth 12 million Canadian dollars ($8.8 million) with a CA$7 million revolving credit
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