Aleafia Has Buyers Lined Up as Greenhouse Goes into Production
January 10th, 2019
Exclusive, News, Top News
Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of adult-use cannabis nationwide. With more than a hundred licensed producers in the market, investors have shifted their focus from raw production capacity to durable competitive advantages. These could come in the form of distribution agreements, innovative products—or, in some cases, both.
In this article, we will look at Aleafia Health Inc. (TSX-V: ALEF) (OTCQX: ALEAF) (FRA: ARAH) and its new greenhouse that’s moving into production later this year, along with its existing distribution channels that set it up for success—including a base of over 50,000 medical cannabis patients.
Moving into Production
Aleafia recently announced the completion of Phase I construction and retrofitting of its Niagara greenhouse facility located in Grimsby, Ontario. With the greenhouse ready, the company entered the final stage of the Cultivation License application process. Management expects that the first crop will begin within the next 60 days, pending Health Canada’s approval, significantly increasing its total production capacity.
“This milestone, and projected growth in Aleafia’s production capacity, represents a game-changer for Aleafia,” says Aleafia CEO Geoffrey Benic. “With an emerging national retail network via Serruya Private Equity, our 15,000 kg supply agreement with CannTrust and the pending acquisition of Emblem, the demand for Aleafia’s high-quality cannabis has never been stronger.”
Lucas Escott, co-founded of Mettrum Health (sold to Canopy Growth for $430 million), will lead the cultivation efforts as Head Horticulturist. Escott and the rest of the cultivation team have collectively built out and operated seven purpose-built cannabis cultivation facilities representing nearly one million sq. ft. of growing space. The team’s goal is to leverage the latest technology to create the high-quality, low-cost, year-round product.
Existing Customer Demand
Aleafia has significant pent-up demand for its Niagara cannabis which will come online over the course of next year. After moving to acquire Emblem Corp. (TSX-V: EMC) (OTCQX: EMMBF), the company will have access to highly differentiated and high-margin production capabilities, including the ability to create capsules, oils, and oral sprays.
Earlier this week, Emblem announced that it’s-branded cannabis oils are available in Shoppers Drug Mart, which is Canada’s largest pharmacy chain. The demand from this distribution channel could grow significantly over the coming months as it rolls out its highly-differentiated products, and the in-house source of cannabis from Niagara will ensure both high-quality product and greater profit margins through lower costs.
Aleafia also has an agreement with CannTrust Holdings Inc. (TSX: TRST), providing it with the right to purchase up to 15,000 kilograms of cannabis in 2019, and Serruya Private Equity to build a national retail dispensary. The latter agreement calls for the creation of a joint venture that aims to create retail locations across the country by working with provincial distributors and other parties involved in the process.
Aleafia Health Inc. (TSX-V: ALEF) (OTCQX: ALEAF) (FRA: ARAH) represents a compelling investment opportunity in Canada’s nascent cannabis industry. With both innovative products from Emblem and distribution across its 50,000 patients and other venues, the company has a unique advantage that few other licensed producers can match. The near-term production potential also creates a significant catalyst for shareholders in 2019.
The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: https://www.cannabisfn.com/legal-disclaimer/
Follow Us on Social Media
About CFN Media
CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.
CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.
Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.