Aleafia Health Provides Guidance for Profitable Third Quarter 2019
September 24 2019 - 7:00AM
Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH)
(“
Aleafia Health” or the
“
Company”) is pleased to provide guidance
anticipating the Company will achieve positive net income for the
three month period ended September 30, 2019.
“Through prudent capital allocation, coupled with
strong cannabis revenue growth, we now expect to deliver the first
profitable quarter in Aleafia Health’s history, a major milestone.
This will mark our second consecutive quarter featuring both
substantial expense reductions and increased revenues as we
continue to drive towards sustainable, compliant growth that will
deliver real benefits to our stakeholders,” said Aleafia Health CEO
Geoffrey Benic.
“Aleafia Health is now transitioning to a new phase
of our growth story. We have, until now been executing on major
capital projects which are now either finished or weeks away from
completion. With a strong cash position, we are extremely well
positioned to build on the growth experienced this quarter on a
much greater scale.”
The Company also maintains a strong balance sheet
with an estimated $51 million in cash on hand.
PRODUCTION UPDATE
- Port Perry Outdoor Grow
facility Phase I: Harvesting is expected to commence at
the licensed, operational 1.1 million sq. ft. outdoor cultivation
facility in the next two weeks. WATCH: Aerial Video of Port
Perry.
- Port Perry Outdoor Grow Phase
II Expansion: Security and cultivation infrastructure at
the 2.6 million sq. ft. expansion is expected to be completed in
November 2019.
- Niagara Greenhouse:
The Niagara Greenhouse Phase I remains in a grow-ready state
pending receipt of a Health Canada Cultivation Licence. Remaining
retrofitting is limited to two final growing rooms in the
facility’s Phase II portion, which are expected to be completed in
October 2019. All other non-cultivation infrastructure including
trimming & drying room, shipping, and disposal areas are
entirely complete. PHOTOS: Niagara Greenhouse Tour.
REVENUE GROWTH
- Paris Processing facility
Phase II Expansion: The construction of the Phase II
expansion is expected to be completed in October 2019. As part of
the Licence Amendment application, a site evidence package
demonstrating that the facility is operationally-ready will be
submitted to Health Canada. The facility is being purpose-built to
EU GMP standards, a highly differentiated feature that will allow
for export of cannabis products to the EU market.
- Growth of Registered Patient
base: Today, the Company now has over 10,000 active,
registered medical cannabis patients, an increase of over 3,000
patients or 42 per cent over July 2019. Leveraging the Company’s
integrated cannabis health and wellness ecosystem, Aleafia Health
is well positioned to capture further market share
- First Australian Medical
Patients: Medical cannabis oils, grown, extracted,
packaged and exported by Aleafia Health are now available to
patients in Australia through our strategic partnership with
Australian Licensed Producer CannaPacific. Additionally, the first
prescription from a physician for an Aleafia Health product was
written earlier this month.
REVOCATION OF SHARE CONSOLIDATION
RESOLUTION
In addition, at a meeting of the board of directors
of the Company held on September 23, 2019, the board approved the
revocation of the December 6, 2018 special resolution of
shareholders that authorized the board to complete a share
consolidation on the basis of one post-consolidation share for up
to every four common shares currently issued and outstanding. As a
result of the revocation of this resolution, the Share
Consolidation will no longer proceed.
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.
Future Oriented Financial
Information
Any financial outlook or future oriented financial
information contained in this press release, as such term is
defined by applicable securities laws, has been approved by
management of Aleafia Health as of the date hereof and is provided
for the purpose of providing information about management's current
expectations and plans relating to the Company’s Q3 financial
results. Readers are cautioned that any such future oriented
financial information contained herein should not be used for
purposes other than those for which it is disclosed herein. The
Company and its management believe that the prospective financial
information as to the Company’s anticipated Q3 financial results
has been prepared on a reasonable basis, reflecting management's
best estimates and judgments. However, because this information is
highly subjective, it should not be relied on as necessarily
indicative of future results.