Aleafia Health Inc (OTCMKTS: ALEAF) has been slowly trending downwards and Investors are looking for a reversal. The stock exploded in November of last year when we first reported on it.
On May 13 ALEAF reported its First Quarter 2019 financial results for the period ended March 31, 2019. Aleafia Health reported 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.
Aleafia Health CEO Geoffrey Benic commented:
“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. 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.”
Aleafia Health Inc (TSXV: ALEF; OTCQX: ALEAF, FRA: ARAH) 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.
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On March 14, 2019, Aleafia Health closed the acquisition of Emblem in an all share transaction. The acquisition accelerated the Company’s business strategy by creating; the leading Canadian medical cannabis clinic and education centre network with 60,000 patients seen to date; a high-value, highly differentiated product portfolio of oils, capsules and sprays; scaled production capacity and leading supply with three dedicated cultivation and product innovation facilities and the industry’s largest LP-to-LP cannabis supply agreement; a national and global distribution platform with provincial supply agreements, retail partnerships and a global expansion; and improved capital markets profile and liquidity, including up-listing to the TSX.
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.
1.1 million sq. ft. Port Perry Outdoor Grow: Aleafia Health submitted its Licence Amendment application for a 1.1 million sq. ft. (26 acres) Outdoor Grow expansion where its licensed and operational Port Perry Indoor facility resides. Subsequent to the reporting period, the Company completed the build-out of the Outdoor Grow site and on May 3, 2019, submitted its evidence package to Health Canada, demonstrating that the facility meets all requirements to secure its Licence Amendment.
On January 18, 2019, the Company announced the launch of its international expansion with the closing of its 10 per cent equity stake in Australian Licensed Producer CannaPacific Pty. Limited (“CannaPacific”). Subsequent to the reporting period, on April 11, 2019, the Company announced that it made an increased investment in CannaPacific by the purchase of AU $540,000 worth of ordinary shares to maintain the Company’s 10 per cent stake, following CannaPacific’s successful acquisition of a 108.000 sq. ft. greenhouse for cannabis cultivation in New South Wales, Australia. The Company has received an Import Permit from the Australian Office of Drug Control, and expects to complete its first international product shipment, following receipt of a Health Canada Export Permit, which the Company has applied for. Also following the reporting period, the Company announced on May 6, 2019, its entrance into the German medical cannabis market by expanding the scope of Emblem’s joint venture with German pharmaceutical wholesaler and logistics company Acnos Pharma GmbH (“Acnos”). The Company, through Emblem, owns 60 per cent of the JV, and will leverage Acnos’ supply chain network, including access to 20,000 pharmacies and 110 distribution centres in the world’s largest medical cannabis market.
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Currently trading at a $253 million market valuation Aleafia is sitting on a war chest of $29 million CAD in the treasury. The Company boats virtually no debt and fast growing revenues recently reporting $1.5 million in Q1, 2019, compared to $0.1 million in Q1 2018, . Aleafia is one exciting cannabis company making big moves; the Company operates the largest brick and mortar medicinal cannabis clinic network in Canada under the Canabo Medical Clinic brand and they are uniquely positioned in the booming Canadian cannabis market with 2 facilities and growing capacity expected to reach 38,000 kg by early 2019. We will be updating on Aleafia when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with Aleafia.
Disclosure: we hold no position in Aleafia either long or short and we have not been compensated for this article.