Aleafia Health Inc. announced Wednesday a deal to buy fellow Canada-based cannabis company Emblem Corp. in a deal that values Emblem at about C$173.2 million ($128.8 million). Under terms of the deal, Emblem shareholders will receive 0.8377 Aleafia shares for each Emblem share they own. Based on Tuesday's stock closing prices in Canada, that values Emblem shares at C$1.206, or a 27% premium. The deal, which the companies say will create the largest medical cannabis clinic network, gives Aleafia access to Emblem's high-margin derivative products, including capsules, oils and oral sprays. The deal also helps Aleafia leverage Emblem's Health Canada License to sell medical cannabis products directly to patients. "Emblem's product leadership in the medical and adult-use sectors and highly coveted supply agreements will perfectly complement Aleafia's cannabis production and clinic operations," said Aleafia Chief Executive Geoffrey Benic. "This is a transformative transaction that positions Aleafia as a global cannabis leader." Aleafia's U.S.-listed shares have shed 27% over the past three months and Emblem's stock has tumbled 45%, while the ETFMG Alternative Harvest ETF has dropped 36% and the S&P 500 has lost 12%.