RE:Irwin indicated EU GMP certification We here can never really know the whole behind-the-scenes story, ever. But if you read APHA's response (below), there are two interesting things I think. 1. ALEF said they were terminating because of non-delivery of the promised product. But their 5 yr agreement only started in May, so why is termination happening now not even 6 months in? Maybe the problem really is on APHA's side. E.g. perhaps the ridiculuous delay getting HC approval of DD did affect APHA's abiity to deliver. But there's plenty of product coming from Aphria One and you'd think APHA's binding contract with another company in which they are "a large shareholder" would be high priority. ie APHA would really want this to continue. But 2, maybe the problem is on ALEF's side. The deal was originally with Emblem in 2018, who ALEF bought out, and they would now have to pay APHA a non-refundable deposit of $13M cash and 7 M Emblem shares. ALEF nd APHA business plans have a lot in common, ie they're competitors in the medical cannais field. So maybe the new owners thought it was a bad deal. In any case, as the last line below says, ALEF was not a material part of APHA's long-term sales and profits.
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Aphria Inc. ("Aphria" or the "Company") (TSX: APHA and NYSE: APHA) today issued the following statement in regards to Aleafia Health Inc.'s ("Aleafia") termination of the Company's wholesale cannabis supply agreement ("Agreement") with Emblem Corp.("Emblem"):
"We are disappointed that Aleafia has chosen to terminate its Agreement with Aphria Inc. The Company had every intention of fulfilling its obligations under the Agreement. As a large shareholder of Aleafia, Aphria made good faith efforts to ensure continuation of the Agreement understanding it was in the best interest of all parties involved. However, the termination of this legacy Agreement frees up significant supply allowing the Company to service its brands that are in high-demand across the country."
The Parties are contractually obligated to negotiate for a period of 30-days following the receipt of a formal notice of termination. If the Parties fail to arrive at any agreement or settlement within the 30-days, and if Aleafia initiates a formal claim for damages, the Company intends to vigorously defend itself.
The Agreement is not a material part of the Company's business and operations.
jayjay2020 - (10/8/2019 10:09:05 AM)
Irwin indicated EU GMP certification
was close. He said this in the last conference call. Not supplying Aleafia could be an indication that certification has been received or is close to being received. The supply will be necessary to export to Germany. This is just speculation but would make sense .