On March 14, 2019, Aleafia Health Inc. (TSXV: ALEF) (OTC: ALEAF) (FRA: ARAH) and Emblem Corp. (TSXV: EMC) (OTCQX: EMMBF) announced that they had completed the previously announced plan of arrangement under the provisions of the Canada Business Corporations Act in an all share transaction valued at approximately $172.3 million at the time of the deal's announcement. Pursuant to the arrangement, Aleafia acquired all of the common shares of Emblem, to form a new wholly-owned subsidiary continuing as "Emblem Corp." Aleafia has graduated from the TSX Venture Exchange and will commence trading on the Toronto Stock Exchange at market open on March 19, 2019.
Aleafia, based in Concord, Ontario, is a leading, vertically integrated cannabis health and wellness company. Following closing of the transaction, Aleafia owns three major cannabis product & cultivation facilities, operates the largest national network of medical cannabis clinics and education centres and maintains a medical cannabis dataset with over 10 million data points to inform proprietary illness specific product development and treatment best practices.
Emblem, based in Toronto, is a fully integrated cannabis company. Through its wholly-owned subsidiary Emblem Cannabis Corporation, Emblem is licensed to cultivate, process, and sell cannabis and cannabis derivatives in Canada under the Cannabis Act. Emblem's state-of-the-art indoor cannabis cultivation facility and Product Innovation Centre is located in Paris, Ontario. Emblem is also the parent company of GrowWise Health Limited, one of Canada’s leading cannabis education services.
Gowling WLG advised Aleafia with respect to this transaction with a team that included Jason Saltzman, Kathleen Ritchie, Marek Lorenc, Joseph McDonald and Stephen Franchetto (corporate/M&A), Michael Watson (advocacy), Paul Carenza (tax), Ian Macdonald (competition), assisted by student-at-law Ryan Cohen.