Aleafia Health Hits Record $43.1M Net Revenue In 2022 15-Month Fiscal Year, Closes Debenture Amendment Transaction

Aleafia Health Inc. ALEAF AH revenue for the 12 months period ending March 31, 2022 was $46.3 million compared to $30.08 million in the12 month period ending March 31, 2021. The fiscal year was changed to end on March 31.

Financial Highlights For the 12 Months Ending March 31, 2022

  • Net Revenue was $36.05 million compared to $28.74 million in the 12 month period ending March 31, 2021.

  • Total gross profit was $4.3 million compared to $11.91 million in 2021.

  • Adjusted EBITDA was a loss of $18.97 million compared to a loss of $5.88 million in 2021

Quarter Ended March 31 2022 (“Q5”)

  • Net Revenue was $7.04 million compared to $7.06 million in the same period of 2021.

  • Total gross profit was $933,000 compared to $3,28 million in the same period of 2021.

  • Adjusted EBITDA was a loss of $4.41 million compared to a loss of $3.03 million in the same period of 2021

Closing of Debenture Amendment Transaction

The company has closed its amendment of its unsecured convertible debentures.

“We are delighted we have now completed this transaction,” stated Tricia Symmes Aleafia Health’s CEO. “We want to thank all those who participated for demonstrating their confidence in the company’s future. Coupled with the closing of the $5.6 million private placement announced last week, the company is now much better positioned to execute on its ambitious growth plans in all key segments of its business: adult-use, medical and international.”

The debenture amendments were effected by the exchange of the outstanding $37,05 million principal amount of unsecured convertible debentures for new, secured convertible debentures, which were issued to existing debenture holders in three equal, separate series: 8.50% series A secured debentures due June 30, 2024, 8.50% series B secured debentures due June 30, 2026 and 8.50% series C secured convertible debentures due June 30, 2028.

As previously disclosed, the interest rate will remain at 8.5%, but there is no mandatory cash interest payment for between 24 and 30 months as interest will initially be paid-in-kind with additional new debentures reducing near-term debt servicing requirements.

In addition, an aggregate of approximately $2.4 million principal amount of series C debentures were issued in payment of the consent fee payable to debenture holders who consented in favor of the extraordinary resolution approving the debenture amendments, which consent fee is subject to withholding for non-residents of Canada.

The new debentures were issued on a private placement basis and are subject to a statutory hold period of four months and one day commencing on the date of issuance of the new debentures in accordance with applicable Canadian securities laws. The new debentures will bear a legend reflecting the foregoing restriction on resale. The company has applied to list each series of the new debentures on the Toronto Stock Exchange, and such listing is expected to occur following the expiration of the statutory hold period, subject to the satisfaction by the company of customary listing conditions.

The new debentures are secured against certain assets of the company, but are fully subordinated to the company’s existing senior secured debt. The company is not entitled to incur further senior secured indebtedness, subject to certain exceptions including to fund working capital, capital expenditures, and strategically accretive acquisitions.

Related News

 

Posted In: Tricia SymmesCannabisEarningsNewsPenny StocksMarkets

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.