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Aphria issues shares to Emblem after settlement in supply dispute

Aphria Inc. has issued more than 1.6 million common shares to Emblem Cannabis, a subsidiary of Aleafia Health, as part of a previously announced settlement.

Aphria signed a deal in 2018 that called for it to provide 175,000 kilograms of cannabis to Emblem over five years.

Emblem later claimed that Aphria had not met its supply obligations and cancelled the agreement, kickstarting arbitration.

As part of their settlement, announced June 25, Emblem was to receive $10 million worth of stock, $15 million in cash and a waiver of claimed receivables.

Based on July 6 trading prices, the 1.6 million shares issued by Aphria would be worth about $9.5 million.

Aphria shares were at $5.94 in mid-morning trading, up seven cents from Friday. Aleafia shares haven’t traded since June 1 when they were last valued at 60 cents.