Aleafia Charges Aphria with Failure to Meet Cannabis Supply Agreement

Aleafia Health Announces Termination of Supply Agreement with Aphria Inc.

TORONTO, October 8, 2019 – Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH) (“Aleafia Health” or the “Company”) announces that it has provided Aphria Inc. (TSX: APHA, NYSE: APHA) (“Aphria”) with a formal notice of the termination, effective October 7, 2019, of the wholesale cannabis supply agreement (the “Supply Agreement”) dated September 11, 2018 between Aphria and Emblem Corp. (“Emblem”), a wholly-owned subsidiary of the Company, providing for the provision by Aphria of up to 175,000 kg equivalents of cannabis products over an initial five-year term, commencing May 1, 2019.

Following Aphria’s failure to meet its supply obligations under the Supply Agreement, Emblem has exercised its contractual right to terminate the Supply Agreement in accordance with its terms. The termination of the Supply Agreement by Emblem was made without prejudice to its rights accrued to the date of termination (including its rights to be refunded the unused balance of its deposit) and its rights to seek damages as a result of Aphria’s default and termination thereunder.

The Company does not believe the termination of the Supply Agreement will materially and adversely affect the Company’s business, operations or results.

For Investor and Media Relations, please contact:

Nicholas Bergamini, VP Investor Relations
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
CORPORATE PRESENTATION

About Aleafia Health:

Aleafia Health is a leading, vertically integrated cannabis health and wellness company with four primary business units: Cannabis Cultivation & Products, Health & Wellness Clinics, Cannabis Education, and Consumer Experience with ecommerce, retail distribution and provincial supply agreements.

Aleafia Health owns three major cannabis product & cultivation facilities, two of which are licensed and operational including the first large-scale outdoor cultivation facility in Canada. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators.

Innovation is at the heart of Aleafia Health competitive advantage. The Company maintains a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value and has been named the 2019 top performing company of the year by the TSX Venture Exchange prior to graduation to the TSX.

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