Aleafia Health Inc. Announces Closing of Business Combination Between Canabo Medical Inc. and Aleafia Inc. NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES TORONTO, March 26, 2018 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSXV:ALEF) (“Aleafia Health” or the “Company”, formerly, Canabo Medical Inc. (TSXV:CMM)) is pleased to announce the completion of its previously announced business combination (the “Transaction”) with Aleafia Inc. (“Aleafia”) pursuant to the terms of the Business Combination Agreement dated January 31, 2018. As a result of the Transaction, the Company has changed its name to “Aleafia Health Inc.” and Aleafia Inc. is now an indirectly wholly-owned subsidiary of the Company. In connection with the completion of the Transaction, the Company is also pleased to announce the release from escrow to the Company of aggregate gross proceeds of $30,213,750, pursuant to its previously announced over-subscribed brokered private placement of subscription receipts completed on March 1, 2018 (the “Private Placement”). The Private Placement was co-led by Mackie Research Capital Corporation, as sole bookrunner, and Canaccord Genuity Corp., together with a syndicate of agents that included Clarus Securities Inc. and PowerOne Capital Markets Limited (collectively, the “Agents”). Gross proceeds of the Private Placement are now immediately available for the Company for the continuing development of its vertically integrated medical cannabis business, to retire the vendor-take back mortgage on Aleafia Farms Inc.’s Scugog property where the Company’s licensed cannabis production facility operates and for general working capital purposes. “We are delighted to have formally completed the vertical integration of our two companies, and look forward to a long and meaningful partnership as we go forward as one, patient-focused, physician-led and research driven organization,” said Aleafia Health Inc. Executive Chairman, Julian Fantino, on behalf of the board of directors. “We look forward to having more to say this coming Wednesday, at which time we will make a more formal announcement”, Fantino concluded. The Company now has 135,944,461 common shares, 12,315,850 warrants and 6,689,000 stock options issued and outstanding.
-------------------------------- It is expected that the TSX Venture Exchange will issue a bulletin on Tuesday, March 27, 2018 to advise that trading of Aleafia Health’s common shares will recommence on Wednesday, March 28, 2018 under the trading symbol ALEF.-----------------------
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