Aleafia Health Inc OTCMKTS: ALEAF 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. 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.
Aleafia Health maintains a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and treatment best practices. 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.
Aleafia Health Inc OTCMKTS: ALEAF On May 13, 2019 provides a corporate update and report its First Quarter 2019 financial results for the period ended March 31, 2019. Aleafia Health has filed today its consolidated financial statements and related management’s discussion and analysis. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated. The Company’s acquisition of Emblem Corp. (“Emblem”) closed on March 14, 2019, and as a result, Emblem financial results prior to the closing date are not reported in the financial statements.
“In 2018, Aleafia Health laid the groundwork for a breakthrough 2019, and we have now begun to see the results of this work. The closing of the transformative acquisition of Emblem has accelerated our global mission of growing, processing and selling high-margin value-added cannabis products by 12 to 18 months,” said Aleafia Health CEO Geoffrey Benic. “Our three production facilities will, when operational, truly leverage our global distribution platform, brands, and data-driven product expertise. Concurrently, we have achieved an improved capital markets profile, graduating to the Toronto Stock Exchange, while increasing our cash position despite making major investments in the buildout of our modern production facilities. I would like to thank our entire team, from the leadership of our Board, to clinic staff and physicians, production buildout crews, and management for the outstanding work and commitment shown to our shared cannabis health and wellness vision.”
Niagara Greenhouse and Port Perry Outdoor Grow Licence Application Updates
Aleafia Health is pleased to announce that it has received a status update letter from Health Canada indicating that Aleafia Health’s Cultivation Licence application for its Niagara Greenhouse facility has passed a high-level review and that Health Canada has no concerns at this point. Passing this mandatory review is an important requirement as outlined by the new licensing guidelines announced by Health Canada on May 8, 2019. The Company is also pleased to report that its Licence Amendment application for the Port Perry Outdoor Grow expansion is now officially under review by Health Canada.
Revenues & Expenses
Aleafia Health revenue was $1.5 million, compared to $0.1 million in Q1 2018, a 1,723 per cent year-over-year increase. The Company experience a net loss of $20.2 million, or a $7 million net loss, excluding $13.2 million in one-time, non-cash payments resulting from the closing of the Emblem acquisition. The Company has $36.8 million cash on hand at March 31, 2019, compared to $26.4 million at December 31, 2018. Current assets, including cash, totalled $61 million at March 31, 2019, compared to $29.2 million at December 31, 2018.
160,000 sq.ft. Niagara Greenhouse: During the reporting period, the Company brought its Niagara Greenhouse to a grow-ready state and submitted its evidence package to Health Canada, demonstrating that the facility meets all requirements to secure its Cultivation Licence.