Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH)
(“
Aleafia Health” or the
“
Company”) is pleased to provide 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, both of which are available on Aleafia
Health’s profile at www.SEDAR.com. 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.
First Quarter Business
Highlights
Emblem Acquisition: 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.
International Expansion: 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.
Improved Capital Markets Profile: On March 19,
2019, the Company successfully graduated to the Toronto Stock
Exchange. The Company believes that the TSX listing will benefit
the Company due to greater liquidity and increased credibility with
North American institutional investors. Prior to graduating to the
TSX, the Company was also named the year’s top performing company
for the entire TSX Venture Exchange in 2018.
Innovative Research: Aleafia Health collects
millions of data points across patient interaction with doctors,
nurses and educators including diagnosis, treatment, and monitoring
forming the Company’s unique and highly differentiated 10 million
point medical cannabis dataset. During the reporting period, the
Company published a retrospective study in the peer-reviewed
journal Cannabis and Cannabinoid Research which found that 45.2 per
cent of patients regularly consuming benzodiazepines had stopped
taking the medication within approximately six months of beginning
medical cannabis.
Management Call &
Presentation
Date: May 13,
2019Time: 8:30 a.m.
EDTUSA/Canada Toll-Free Participant Call-in: (866)
679-9046; Passcode: 5961515International Toll-Free
Participant Call-in: (409) 217-8323; Passcode: 5961515
Webcast Link:
https://edge.media-server.com/m6/p/5csxr9np
This conference call will be webcast live over the internet and
can be accessed through the link provided above. Audio of the
call will be available to participants through both the conference
call line and webcast; however the presentation may only be viewed
via the webcast. Participants who miss the live call can view a
replay at any time via the link provided.
For Investor and Media Relations, please
contact:
Nicholas Bergamini, VP, Public
Affairs416-860-5665IR@AleafiaHealth.comLEARN
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.
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.
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 Aleafia Health 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.
Examples of such statements include statements with respect to the
future market share achieved in recreational markets, product
development, clinical trial work, and planned expansion
activities. 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 filed with Canadian securities regulators available on
the Company's issuer profile on SEDAR 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 an
obligation to publicly update such forward-looking information to
reflect new information, subsequent events or otherwise unless
required by applicable securities legislation.
A photo accompanying this announcement is available
at: http://www.globenewswire.com/NewsRoom/AttachmentNg/ad4d2599-1821-4b8a-9b70-70c78eb8e121
The photo is also available at Newscom, www.newscom.com,
and via AP PhotoExpress.