Aleafia Health Inc to Acquire Emblem Corp: Geoff Benic (TSXV:ALEF) and Nick Dean (TSXV:EMC) on Merger
By James West – Midas Letter
Aleafia Health Inc (TSXVCVE:ALEF) (OTCMKTS:ALEAF) (FRA:ARAH) grabbed headlines by announcing the acquisition Emblem Corp (TSXV:EMC) (OTCMKTS:EMMBF) (FRA:E0M). The all-share transaction is valued at approximately $173 million and will significantly alter the medical cannabis landscape in Canada. Emblem CEO Nick Dean explains that the company’s investors should be excited about the deal’s 0.83 share ratio, which means Emblem shareholders will receive 41% of a stronger combined entity. Aleafia CEO Geoff Benic stresses the compatibility of the companies, emphasizing that Emblem’s 30,000 square foot extraction facility compliments Aleafia’s outdoor grow plans. Benic also notes that Emblem’s GrowWise Health clinics bring the combined entity’s total clinics to 40 while Emblem has the capability to supply product to Aleafia’s patients. As a result, the combined company’s potential for patient growth and retention, as well as product innovation in the medical space, is significant.