Aleafia Health Continues to Gain Share in Adult Use Cannabis Market and Drive International Sales Growth

Ryan Allway

March 25th, 2022

News, Top News

Reached new record market share overall adult use market share of 2.06% in February 2022, advancing 33% from 1.54% in November 2021⁽¹⁾
Continued ascent in overall market share rankings, up two more notches to 13th in February 2022 from 15th in November 2021
On the pathway towards a top 10 market share position by the end of 2022
Received first $1 million purchase order
Secured seven new listings in Ontario and six in Alberta to enter market in the Spring
International POs in hand already exceed entire second half of 2021
Headed towards break-even Adjusted EBITDA profitability in second half of 2022

TORONTO, March 25, 2022 – Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is pleased to provide a corporate update demonstrating that the Company continues to deliver market share advances by focusing on the highest revenue generating dried flower, pre-roll, and vape product categories. Consumers continue to express strong interest in its Sunday Market House of Brands adult-use cannabis products in these categories.

“In February, the Company reported that it had changed the business’ strategy towards being a branded cannabis products provider, with branded cannabis representing 80% of total net revenue in 2021 compared to 33% in 2020,” said Aleafia Health CEO Tricia Symmes. “Now we continue to deliver on that strategy, with record growth in market share in February and unique product introductions that demonstrate the success of our Sunday Market House of Brands, setting the stage for future success in the highest volume cannabis categories.”

In February, Aleafia Health achieved record 2.06% adult use market share in four major markets, advancing 33% from 1.54% in November 2021. In the same time frame, market share in flower rose to 1.86% from 1.47%, pre-rolls rose to 2.62% from 2.09%, vapes rose to 2.18% from 0.92%, and oil rose to 4.01% from 2.68%.⁽¹⁾ These advances in market share would have been stronger absent temporary capacity limitations at the Company’s Grimsby greenhouse facility.

Among Canadian LPs, in its four major markets, the Company ranked in February 2022⁽¹⁾:
○      13th overall, up from 30th in February 2021
○      11th in pre-rolls, up from 37th in February 2021
○      11th in vapes, up from 18th in February 2021

This 17-position overall market share rank increase, from 30^th to 13^th, demonstrates the success of the Sunday Market House of Brands. This growth was driven by strong retail pull-through of the Divvy product portfolio, Sunday Market’s everyday brand. The Company recently shipped its first flower SKUs to British Columbia, including 14g bags of Divvy Sour Kush and Flo, and 3.5g bags of Divvy Black Widow CBD, the Company’s spicy balanced flower offering. Divvy has consistently been one of the top 12 most searched brands on OCS.ca since its first product launch in April 2021. In addition, the Company’s Kin Slips discrete sublingual strip brand ranks #1 in Ontario.
As another indicator of consumer demand and sales momentum for adult use products, the Company for the first time has received a $1 million purchase order from Ontario, covering a wide range of products. In addition, Aleafia Health has secured purchase orders in 2022 year-to-date from Australia and Europe that exceed 2021 second half sales to international markets. Aleafia continues to target international sales as a future growth area, benefitting from its strong relationships with overseas distributors.
“Many of the Company’s new listings are line extensions, which speak volumes about the confidence the OCS and AGLC have in the Company, as those provincial authorities usually list line extensions only if predecessor products have been successful, which ours clearly were.”
“Divvy, the Company’s well-established everyday brand is focused on an exceptional value proposition, with a full suite of dried flower, pre-rolls, vapes and cannabis derivative products, benefitting from supply agreements with Ontario, Alberta, Saskatchewan, British Columbia,” Symmes said. “The Company has more than 100 provincial listings and seven new SKUs in Ontario and six in Alberta this Spring. That continued revenue velocity, in combination with the continued cost containment and rationalization initiatives underway, is helping drive us towards achieving breakeven Adjusted EBITDA⁽²⁾ profitability in the second half of 2022.”

1. Based on HiFyre data for Ontario, Alberta, British Columbia and Saskatchewan markets.
2. Please see “Adjusted EBITDA” section of the Company’s MD&A dated February 14, 2022 for reconciliation to IFRS equivalent.

For Investor & Media Relations:

Matthew Sale, CFO
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com

About Aleafia Health:

Aleafia Health, a vertically integrated and federally licensed Canadian cannabis company, owns three licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history, and operates a strategically located distribution centre, all in the province of Ontario. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the adult-use and medical markets and is pursuing opportunities in select international jurisdictions. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners.

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”, “estimates”, “intends”, “anticipates”, 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.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.

Search CannabisFN

Press Coverage

Psychedelics Index

Visit the CFN Video Library

Join Our Facebook Page

Top Videos

Rob Sechrist of Pelorus Equity Group

Rob is the co-founding President of Pelorus Equity Group and has more than 18 years of experience in the real estate finance industry. Since the formation of Pelorus in 2010, he has raised more than $175,000,000 in secured real estate transactions. Rob’s primary role at Pelorus Equity Group is the development of strategic alliances with […]

CFN Media / Paul Rosen

Watch CFN Media’s exclusive three part interview with Paul Rosen, one of the most active and diversified investors in the emerging cannabis industry. Paul gives his insights on the global cannabis industry and discusses his new endeavors. Become a CFN Media Client Paul Rosen is a noted career entrepreneur and management consultant. Over the last […]

Wildflower Brands Inc.

Wildflower Brands is a Vancouver-based company developing and designing brands that focus on plant-based health and wellness products.

Innoviom

Innovium is a global beverage and foods brands platform that builds on consumer market trends and takes them to scale.

Network Partners

Follow Us on Social Media

Facebook

Twitter

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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. CFN Media Group, 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/.