Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) reported that its 2018 total revenue was $3.3 million versus zero in 2017. The pro-forma combined Aleafia Health and Emblem revenues in 2018 were $11.3 million an increase of 327% over a combined Aleafia Health and Emblem 2017 revenues of $2.7 million. Still, the company delivered a net loss from operations in 2018 of $9.7 million.
Aleafia Health gross profit in 2018 was $1.6 million. Emblem experienced a net loss in 2018 of $24.3 million. Aleafia Health and Emblem had combined cash on hand of $63.2 million at December 31, 2018.
“2018 saw Aleafia Health build the foundation for a breakthrough 2019 and beyond. We believe that our strategically placed assets, strong management team and distribution channels will allow us to scale our global mission of growing, processing and selling high-margin, value-added cannabis health and wellness products,” said Aleafia Health CEO Geoffrey Benic. “It is a testament to the execution capabilities and commitment of our team that Aleafia Health has grown from a pre-revenue business to one of the largest licensed producers in under one year.”
In the company statement, Aleafia said that with the anticipated expansion of its three production facilities, together with confirmed supply agreements, it should reach an annual production capacity of 138,000 kg of dried flower and extraction capacity of 50,000 kg. The company also gave the following updates:
- The automated Niagara Greenhouse is now in a plant-ready state, with complete construction and retrofitting of the facility expected to be completed in May 2019.
- The company received local zoning approval for a 26-acre low-cost outdoor grow on prime agricultural farmland adjacent to its operational Port Perry facility. The Company expects to bring the Outdoor Grow to a plant-ready state in the next week, with perimeter fencing and other required security measures now nearing completion.
- Construction of the Phase II expansion in Paris is expected to be completed in June 2019, with all necessary equipment in place to begin production by mid-Q3 2019. Additionally, the Company will offer tolling and white label services to other licensed producers looking to leverage the Company’s extraction and packaging capabilities.
- The company said it intends to leverage the benefit of preferred wholesale pricing under existing multi-year supply agreements, anticipating our first shipment of dried flower and crude resin from Aphria Inc. in mid-2019 as part of the largest ever supply agreement between licensed producers. Aleafia Health will also leverage the three-year, 9,000 kg supply agreement with Natura Naturals Holdings Inc., a wholly-owned subsidiary of Tilray Inc.