Aleafia Health Inc. maintains strong balance sheet with $51 million in cash on hand.
Construction of Paris Phase II Processing facility expected to be completed in October 2019. Active, registered patients increased to over 10,000, a 42% increase since July. Products grown, extracted and exported by Aleafia Health now available to patients in Australia.
TORONTO, Sept. 24, 2019 (GLOBE NEWSWIRE) — Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH) (“Aleafia Health” or the “Company”) is pleased to provide guidance anticipating the Company will achieve positive net income for the three month period ended September 30, 2019.
“Through prudent capital allocation, coupled with strong cannabis revenue growth, we now expect to deliver the first profitable quarter in Aleafia Health’s history, a major milestone. This will mark our second consecutive quarter featuring both substantial expense reductions and increased revenues as we continue to drive towards sustainable, compliant growth that will deliver real benefits to our stakeholders,” said Aleafia Health CEO Geoffrey Benic.“Aleafia Health is now transitioning to a new phase of our growth story. We have, until now been executing on major capital projects which are now either finished or weeks away from completion. With a strong cash position, we are extremely well positioned to build on the growth experienced this quarter on a much greater scale.”
The Company also maintains a strong balance sheet with an estimated $51 million in cash on hand.
PRODUCTION UPDATEPort Perry Outdoor Grow facility Phase I: Harvesting is expected to commence at the licensed, operational 1.1 million sq. ft. outdoor cultivation facility in the next two weeks. WATCH: Aerial Video of Port Perry.
Port Perry Outdoor Grow Phase II Expansion: Security and cultivation infrastructure at the 2.6 million sq. ft. expansion is expected to be completed in November 2019.
Niagara Greenhouse: The Niagara Greenhouse Phase I remains in a grow-ready state pending receipt of a Health Canada Cultivation Licence. Remaining retrofitting is limited to two final growing rooms in the facility’s Phase II portion, which are expected to be completed in October 2019. All other non-cultivation infrastructure including trimming & drying room, shipping, and disposal areas are entirely complete. PHOTOS: Niagara Greenhouse Tour.
REVENUE GROWTHParis Processing facility Phase II Expansion: The construction of the Phase II expansion is expected to be completed in October 2019. As part of the Licence Amendment application, a site evidence package demonstrating that the facility is operationally-ready will be submitted to Health Canada. The facility is being purpose-built to EU GMP standards, a highly differentiated feature that will allow for export of cannabis products to the EU market.
Growth of Registered Patient base: Today, the Company now has over 10,000 active, registered medical cannabis patients, an increase of over 3,000 patients or 42 per cent over July 2019. Leveraging the Company’s integrated cannabis health and wellness ecosystem, Aleafia Health is well positioned to capture further market share.
First Australian Medical Patients: Medical cannabis oils, grown, extracted, packaged and exported by Aleafia Health are now available to patients in Australia through our strategic partnership with Australian Licensed Producer CannaPacific. Additionally, the first prescription from a physician for an Aleafia Health product was written earlier this month.
REVOCATION OF SHARE CONSOLIDATION RESOLUTION
In addition, at a meeting of the board of directors of the Company held on September 23, 2019, the board approved the revocation of the December 6, 2018 special resolution of shareholders that authorized the board to complete a share consolidation on the basis of one post-consolidation share for up to every four common shares currently issued and outstanding. As a result of the revocation of this resolution, the Share Consolidation will no longer proceed.
For Investor and Media Relations, please contact:
Nicholas Bergamini, VP Investor Relations
LEARN MORE: www.AleafiaHealth.com
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, operational outdoor cultivation facility in Canadian history. 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 and has international operations in three continents.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.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.Future Oriented Financial InformationAny financial outlook or future oriented financial information contained in this press release, as such term is defined by applicable securities laws, has been approved by management of Aleafia Health as of the date hereof and is provided for the purpose of providing information about management’s current expectations and plans relating to the Company’s Q3 financial results. Readers are cautioned that any such future oriented financial information contained herein should not be used for purposes other than those for which it is disclosed herein. The Company and its management believe that the prospective financial information as to the Company’s anticipated Q3 financial results has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is highly subjective, it should not be relied on as necessarily indicative of future results.