Aleafia Health Inc. (OTCQX: ALEAF) is a vertically integrated, Canadian national cannabis company, operates major medical clinic, cannabis cultivation and R&D facilities. A federally licensed producer and vendor of cannabis, the company has a planned and fully-funded annual production capacity of 98,000 kg of dried cannabis flower.
January 25, 2019. Aleafia announced what it believes to be the first study reporting reduced benzodiazepine use among patients initiated and monitored on medical cannabis.
The retrospective study, published in Cannabis and Cannabinoid Research, a peer-reviewed journal, is entitled “Reduction of Benzodiazepine Use in Patients Prescribed Medical Cannabis.” It found that 45.2 per cent of patients regularly consuming benzodiazepines had stopped taking the medication within approximately six months of beginning medical cannabis. These patients, following prescription cannabis use, also reported decreased daily distress due to medical conditions.
The cohort featured 146 patients who received physician-led treatment in Aleafia Health’s wholly owned Canabo Medical Clinics. Aleafia believes it maintains the world’s largest medical cannabis patient dataset and is deploying the data for unique insights in medical cannabis treatment and product development best practices.
ALEAF has been expanding its operations at a furious pace and recently closed on the investment in CannaPacific Pty Limited, a federally licensed Australian medical cannabis company located in New South Wales, Australia.
About
Aleafia Farms
Port Perry: Fully operational with planned 60,000 kg outdoor grow.
Niagara: Modern, Automated 160,000 sq. ft. Greenhouse
Alefia operates clinics in the following locations:
Surrey, BC
Chilliwack, BC
Kelowna, BC
Calgary, AB
Edmonton, AB
Edmonton (Downtown), AB
London, ON
Hamilton, ON
Burlington, ON
Stoney Creek, ON
Brampton, ON
Barrie, ON
Vaughan, ON
Toronto, ON
Toronto (Albany), ON
St. Catharines, ON
Bracebridge, ON
Kingston, ON
Oakville, ON
Ottawa, ON
Sackville, NB
Halifax, NS
St. John’s, NL
Financial review
Revenues for the three months ended September 30, 2018 and 2017 were $1,639,965 and $400 respectively.
- Wages and benefits totaled $864,315 for the quarter ended September 30, 2018 and $2,361,849 for the nine months ended September 2018. In comparison corresponding amounts for 2017 were $164,401 and $405,249 respectively.
- Business advisory & consulting services totaled $1,051,702 for the quarter ended September 30, 2018 and $1,473,176 for the nine months ended September 30, 2108.
- Professional and legal fees of $282,184 for the quarter ended September 30, 2018 and $569,423 for the nine months ended September 30, 2018 as compared to $16,965 and $17,895 respectively for corresponding periods in 2017.
- Share base compensation for the quarter ended September 30, 2018 was $1,457,476 and $2,072,401 for the nine months ended September 30, 2018 relating to share purchase options issued to employees directors and consultants. The amount for the quarter ended September 30, 2017 was $121,675 and for the nine months ended September 30, 2017 $8,204,706.
- Non-cash amortization expense for the quarter ended September 30, 2018 was $1,104,035 and for the nine months ended September 30, 2018 was $1,385,170. The corresponding amount for 2017 were $16,063 for the quarter ended September 30, 2017 and $19,456 for the nine months ended September 2017
- Rent and facility expenses were $232,430 for the quarter ended September 30, 2018 and $526,760 for the nine months ended September 30, 2018 compared to $14,420 for the quarter ended September 30, 2017 and $50,261 nine months ended September 30, 2017.
- Office supplies and services totaled $151,104 for the quarter ended September 30, 2018 and $321,534 for the nine months ended September 30, 2018 compared to $21,315 for the quarter ended September 30, 2017 and $46,596 for the nine months ended September 30, 2017.
- Advertising and promotion expenses for the quarter ended September 30, 2018 was $181,047 and for the nine months ended September 30, 2018 $356,996. The expense for the corresponding periods in 2017 were $332 and $49,698 respectively.
Net loss for the quarter ended September 30, 2018 was $3,395,299 and the net loss for the nine months ended September 30, 2018 was $6,575,029.
As at September 30, 2018, the Company had a working capital of $23,357,498.
Stock influences and risk factors
Continued growth in the cannabis sector could act as a catalyst for company shares.
Aleafia has no significant history of financial results, it may incur significant net losses in the
future and may not achieve or maintain profitability.
Aleafia’s ability to grow, store and sell medical cannabis in Canada are dependent upon licenses
from Health Canada which are subject to ongoing compliance and reporting requirements.
A failure in the demand for its products to materialize as a result of competition,
technological change or other factors could have a material adverse effect on the business, results
of operations and financial condition of the Company.
Stock chart
On Monday, January 28, 2019, ALEAF shares were at $1.77 per share on traded volume of 1.6 million shares. The current RSI (14) is 78.55
At $1.77, shares of ALEAF are trading above their 50 DMA and 200 DMA of $1.24 and $1.03 respectively.
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