Aleafia Health Advances Cannabis as Medicine and Pursues R&D Opportunities, Cannabis vs Benzos

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.

Aleafia operates medical cannabis clinics staffed by physicians and nurse practitioners, with over 50,000 patients. The company is highly differentiated, maintaining the largest medical cannabis dataset in the world. The company shares are also traded on the TSX Exchange under the symbol ALEF.

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.


Aleafia Health brings Canadians medical cannabis care through nationwide clinics, world-class cultivation and distribution facilities, and innovative research. Experiential knowledge of medical cannabis therapy, a rapidly evolving science, helps ensure physicians make recommendations that have been proven effective through historical data, helping to avoid treatments based on trial and error. The company’s staff of trained educators provide learning sessions for new patients, providing ongoing consultation ensuring patients are matched with the most appropriate treatment. Alefia is based in Concord, Ontario.

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.



Traders News Source is a wholly owned subsidiary of Traders News Source LLC, herein referred to as TNS LLC.

Traders News Source has not been compensated for this report by anyone and the opinions if any are that of the author Mark Roberts. Author’s Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I, wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in the article.

This web site, published by TNS LLC, and is an investment newsletter that is built on the premise of assisting individual investors in learning about investing. Our goal as publishers of financial information is to provide research and analysis of investments to our subscribers. TNS LLC does not give buy or sell recommendations. We do purchase distribution rights from analyst, financial writers and bloggers for a fee that may be licensed to issue price targets and recommendations. Furthermore, we encourage you to speak to a licensed professional prior to making an investment in any type of publicly traded security.

We do sell advertising to other companies including brokerage firms, web sites, publicly traded issuers, investor relations firms, and investment publications, among others. TNS LLC makes no warranty as to the policies of these organizations, and in no way endorses their offers, services, or the content of their advertisements.

When an advertiser is a publicly traded company or a third party acting on behalf of a public company, we fully disclose all compensation in the email advertisement. Such disclosure is included in a disclosure statement in each of the advertisements sent via email.

17B Disclosure

Our reports/releases are a commercial advertisement and are for general information purposes ONLY. We are engaged in the business of marketing and advertising companies for monetary compensation. Never invest in any stock featured on our site or emails unless you can afford to lose your entire investment. The disclaimer is to be read and fully understood before using our services, joining our site or our email/blog list as well as any social networking platforms we may use.

PLEASE NOTE WELL: TNS LLC and its employees are not a Registered Investment Advisor, Broker Dealer or a member of any association for other research providers in any jurisdiction whatsoever.

Release of Liability: Through use of this website viewing or using you agree to hold TNS LLC, its operator’s owners and employees harmless and to completely release them from any and all liability due to any and all loss (monetary or otherwise), damage (monetary or otherwise), or injury (monetary or otherwise) that you may incur. The information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of the available data. TNS LLC encourages readers and investors to supplement the information in these reports with independent research and other professional advice. All information on featured companies is provided by the companies profiled or is available from public sources and TNS LLC makes no representations, warranties or guarantees as to the accuracy or completeness of the disclosure by the profiled companies. None of the materials or advertisements herein constitute offers or solicitations to purchase or sell securities of the companies profiled herein and any decision to invest in any such company or other financial decisions should not be made based upon the information provide herein. Instead TNS LLC strongly urges you conduct a complete and independent investigation of the respective companies and consideration of all pertinent risks. Readers are advised to review SEC periodic reports: Forms 10-Q, 10K, Form 8-K, insider reports, Forms 3, 4, 5 Schedule 13D.

TNS LLC is compliant with the Can Spam Act of 2003. TNS LLC does not offer such advice or analysis, and TNS LLC further urges you to consult your own independent tax, business, financial and investment advisors. Investing in micro-cap and growth securities is highly speculative and carries an extremely high degree of risk. It is possible that an investor’s investment may be lost or impaired due to the speculative nature of the companies profiled.

The Private Securities Litigation Reform Act of 1995 provides investors a ‘safe harbor’ in regard to forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, goals, assumptions or future events or performance are not statements of historical fact may be “forward looking statements”. Forward looking statements are based on expectations, estimates, and projections at the time the statements are made that involve a number of risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated. Forward looking statements in this action may be identified through use of words such as “projects”, “foresee”, “expects”, “will”, “anticipates”, “estimates”, “believes”, “understands”, or that by statements indicating certain actions & quote; “may”, “could”, or “might” occur.

Understand there is no guarantee past performance will be indicative of future results. In preparing this publication, TNS LLC has relied upon information supplied by its customers, publicly available information and press releases which it believes to be reliable; however, such reliability cannot be guaranteed. Investors should not rely on the information contained in this website. Rather, investors should use the information contained in this website as a starting point for doing additional independent research on the featured companies. The advertisements in this website are believed to be reliable, however, TNS LLC and its owners, affiliates, subsidiaries, officers, directors, representatives and agents disclaim any liability as to the completeness or accuracy of the information contained in any advertisement and for any omissions of materials facts from such advertisement. TNS LLC is not responsible for any claims made by the companies advertised herein, nor is TNS LLC responsible for any other promotional firm, its program or its structure.