Canadian cannabis company Aleafia Health and U.S. multistate cannabis operator Red White & Bloom Brands have called off a proposed merger announced in June.
The scrapped merger would have seen financially distressed Aleafia — which launched a strategic review in May after breaching the terms of a loan — swap shares with Red White & Bloom (RWB), with RWB’s shareholders owning the majority of the combined company.
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The deal required approval from holders of Aleafia convertible debentures, who would have had those outstanding debts settled.
Some holders of the convertible debentures supported the deal, Aleafia said in a Friday news release.
But other holders, representing more than a third of the outstanding debentures, “have communicated to Aleafia and RWB that they will not accept the terms of the settlement set out in the (merger) agreement,” the company added.
As a result, the deal could not
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