Canadian cannabis producers Aleafia Health and Aphria have settled a dispute over a supply deal gone wrong.

In 2018, Emblem Cannabis signed a deal for Aphria to provide it with 175,000 kilograms of cannabis over five years, beginning in May 2019.

Emblem was subsequently acquired by Aleafia.

Aleafia cancelled the agreement in August 2019, saying Aphria had failed to meet its supply obligations.

The settlement announced Thursday is worth 29.1 million Canadian dollars ($21.3 million), including CA$15.5 million in cash and $10 million worth of Aphria shares, according to a press release.

All claims related to the supply agreement are being released, and arbitration proceedings have been dismissed.

“The settlement agreement is fair and satisfactory to both parties, and allows Aleafia Health to move forward with a significantly strengthened balance sheet,” said Aleafia CEO Geoffrey Benic in a statement.

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Originally posted on via Cannabis Industry News