Aleafia Health Inc. (TSX:AH) announced that the Company has entered into an amendment to the terms of the loan agreement with NE SPC II LP (“NE SPC”) dated as of December 24, 2021 and as previously amended by agreements dated March 28, 2022 and June 17, 2022 (the “Loan Agreement”). In connection with the Amendment, and in anticipation of the May 31, 2023 deadline, disinterested members of the Company's board of directors (the “Committee”) have commenced a strategic review process (the “Strategic Review Process”) to explore and evaluate potential strategic alternatives that may be available to the Company with the goal of maximizing value for Aleafia Health shareholders (the “Shareholders”) and other stakeholders of the Company. These alternatives may include, but are not limited to, the refinancing of the indebtedness under the Loan Agreement, a sale of all or a portion of the assets of the Company, a sale of all or a portion of the common shares of the Company, a business combination transaction, new debt or equity financings or refinancings, a strategic investment in the Company or other strategic transaction structure (each, a “Potential Transaction”).

The Committee is leading the process and will manage any expressions of interest related to any Potential Transaction and will work with professional advisors to assess the fairness of any Potential Transaction to Shareholders and other stakeholders and make recommendations to the Board in respect of all such matters. No decisions relating to any specific Potential Transaction have been made as at the date of this news release and there are no assurances that any Potential Transaction will result from the Strategic Review Process by May 31, 2023, or at all. The Company does not intend to comment further with respect to the Strategic Review Process unless and until it determines that additional disclosure is appropriate in the circumstances and in accordance with applicable securities laws.