Aphria settlement Aphria settlement will go down something similar to this:
-Initial deposit $23 million
-year 1 tranche #1 May 1st 2019 to April 30th 2020 25,000kg
-year 2 tranche #2 May 1st 2020 to April 30th 2021 30,000kg
I heard that Emblem got a sweat deal on the pricing somewhere between $1 to $1.50/gram.
Aleafia did a smart thing having the bulk sale, plus other sales like their Q1. This shows that they can move product and can extract 115,000kg per year etc.
Aphria dropped the ball, their last earnings they were buying bulk from 3rd party LP's because they didn't have enough product to fulfill demand. This will come up in the negotiations.
I feel since we are in the 2nd tranche of the supply agreement that they will be held liable for that 30,000kg supply on top of the first year 25,000kg.
Aleafia showed they can sell and minimum they should get is $2.50 minus let's say $1.50 max for the cost. So maybe settle for $1 per gram plus damages on supply deals they disrupted. That totals $55 million.
The initial deposit of $23 million will incur interest equal or no less than the interest that aleafia incured with debs and cap raises which should not have been done if Aphria had supplied them with product like they signed up for.
So total Aleafia should be getting minimum is 55million plus 23 million plus interest at roughly 8%+. Total will be in the ball park of $ $80 million plus, and that is without damages. Maybe this is the reason Aphria did that last cap raise for $100 million recently? This will be settled for sure within the next 7 months. They cost themselves an extra 30 million not settling before this tranche started.
On another note, our monthly set up is still valid, I was expecting the outdoor news to blow us above $1, Powell put a stop to it, let's see if we got anything else in the tank to push us higher. Be strong Aleafians. Long live ALEF, long live the king! ALEFLONG