Aleafia Health Expands Outdoor Cannabis Facility by Additional 60 Acres with Property Acquisition
September 04 2019 - 7:00AM
Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH)
(“
Aleafia Health” or the
“
Company”)’s wholly owned subsidiary, Aleafia
Farms Inc., has acquired the farmland directly adjacent to its Port
Perry Outdoor Grow facility. The purchase will allow the Company to
commence its Outdoor Grow Phase II expansion, adding an additional
60 acres of cannabis cultivation area, for a total of 86 acres. The
transaction closed on September 3, 2019, with a cash purchase price
of $1.2 million.
WATCH: AERIAL VIDEO OF ALEAFIA HEALTH’S
OUTDOOR FACILITY
Following closing, the Company will commence the process of
having the new property’s address amalgamated with the current Port
Perry address. This would allow Aleafia Farms to request an
amendment to its existing Health Canada licence, rather than
applying for an entirely new Cultivation Licence. The Outdoor Grow
Phase II buildout will also commence in September, with the
intention of submitting a full evidence package to Health Canada in
late 2019, demonstrating that the site is in a grow-ready
state.
OUTDOOR GROW PHASE II EXPANSION
HIGHLIGHTS
Upon receipt of requisite regulatory approvals, the acquisition
will:
- Increase outdoor cannabis cultivation area from 26 to 86
acres
- Leverage existing buildings on-site for conversion to cannabis
drying rooms and staff accommodations
- Benefit from significant economies of scale and streamlined
regulatory process compared to the building of an entirely new
facility
- Positive local economic impact, through the continued hiring of
regionally based contractors and labour
COMPANY COMPLETES SALE OF UNUSED PARIS
ROAD PROPERTY
In addition, the Company’s wholly owned subsidiary, Emblem
Corp., has completed the sale of an unused 43-acre property,
located at 539 Paris Road in Brant for net cash proceeds of $8.2
million. The transaction closed on August 28, 2019.
“We are delighted to build on the success of our 2019 outdoor
cannabis crop to date and significantly expand our low-cost
production operations for next year. Being one of a handful of LPs
to operate an outdoor facility this year has positioned us well for
a major expansion in 2020,” said Aleafia Health CEO Geoffrey Benic.
“These two transactions demonstrate a strong allocation of capital
and fiscal prudence. With an additional $7 million cash on hand and
60 new acres of low-cost cultivation area, we are well positioned
for sustained future growth.”
For Investor and Media Relations, please
contact:
Nicholas Bergamini, VP Investor Relations1-833-TSX-ALEF
(879-2533)IR@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
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.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/50ae78f3-aa61-4f9f-84cd-c043b2a4de8b