Aleafia Health Inc. Archives - Green Market Report

Adam JacksonAugust 11, 2022
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5min1860

Aleafia Health Inc. (OTCQX: ALEAF) delivered positive results on Thursday as it continues to cut costs and find more profit in the Canadian legal market and overseas.

The Canadian cannabis company reported its financial results for the three months ending June 30, 2021. Aleafia Health releases its financial report card on a 15-month fiscal year with five quarters versus a standard 12-month year with four quarters.

Revenue from the fiscal year’s first quarter rose 41% from last year’s $11.7 million to this year’s $16.5 million. Much of the gains derived from the company’s Ontario brand Divvy climbing the market ladder in both pre-roll and flower products.

“Our pivot to a branded cannabis strategy is the success story driving the three pillars of company revenue: adult-use branded cannabis, a ‘sticky’ recurring medical cannabis revenue stream, and growing higher margin international sales,” said CEO Tricia Symmes. “As a result of revenue increases, the company has achieved the 2nd highest growth rate amongst top 12 Canadian LPs in retail sell-through over the prior quarter while achieving a #12 ranking for market share in our core markets for Q2 CY2022.”

Aleafia Health also reported that its net losses increased from last year’s $5.2 million to this year’s $4.5 million.

Non-GAAP income before interest, taxes, depreciation, amortization, and share-based compensation (Adjusted EBITDA) was a loss of $900,000 in the second quarter of 2022, versus a loss of $3.1 million in the same period last year. The company reaffirmed guidance of achieving run-rate breakeven Adjusted EBITDA in the 2023 fiscal year.

“Due to our successful branded growth strategy, the company continues to target a top 10 standing in our key markets and reaffirms our expectation to reach breakeven Adjusted EBITDA profitability during the second half of FY2023,” said CFO Matt Sale. “Showing continued success in retail sell-through provides us the confidence to reaffirm our guidance to deliver at least $53 million in total net revenue in fiscal year 2023, with a current run-rate of $48 million.”

Revenue Dissection

Aleafia Health saw $12 million in net revenue in the quarter and maintained its forecasted range of $53 million$63 million.

The company continued its upward sales growth trend, with overall branded cannabis net revenue increasing 31% to a record $10.0 million, versus $7.6 million in the same quarter the previous year.

Adult-use cannabis net revenue rose 107% to $6.7 million versus $3.2 million in the same period last year.

Medical cannabis net revenue increased 4% to $2.8 million, an uptick from the previous quarter’s figure of $2.5 million — representing an $11 million run-rate net revenue base. The company said it attained a milestone 7.5% market share in the overall Canadian medical market, according to Health Canada data.

The company also said it secured new international partnerships representing approximately $4.6 million in sales commitments.

 “International revenue is a competitive advantage and a differentiating factor for Aleafia, as we leverage our high quality, diversified flower supply and export it to the higher margin international sales markets,” Symmes said. “Current international agreements have led to more than $0.5 million in sales to Germany and Australia this quarter. We have also secured a new European partner with a $4.6 million sales commitment, representing further channel development. International success leverages both the company’s products and its brands.”

Sale agreed, adding “The newly signed agreement improves revenue and cash flow visibility, locks in attractive margins, and improves our overall cash conversion cycle and net working capital performance.”


Debra BorchardtJune 28, 2022
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Aleafia Health Inc. (OTCQX: ALEAF) reported its financial results for the quarter ended March 31, 2022, with total revenue of $10.7 million versus last year’s $7.5 million for the same time period. The net loss was trimmed to $4.1 million from last year’s $11.2 million for the same time period. Aleafia also reaffirmed guidance of delivering between $53 and $63 million in total net revenue in the fiscal year 2023.

Aleafia noted that due to it changing its year end to March 31, its fiscal year 2022 audited, consolidated financial statements, and management discussion and analysis for the fifth quarter and 15-month periods will be available in the Investors section of the company’s website.

Full-Year Revenue

Digging into the revenue figures, Aleafia Health’s branded cannabis net revenue increased 151% to $36.8 million in the fiscal year 2022, from $14.6 million in the prior year. Total branded cannabis revenue for the period was $47.5 million. Branded cannabis net revenue rose 55% to $8.0 million in the three months ended March 31, 2022, compared to $5.2 million in the three months ended March 31, 2021. Aleafia said it completed a dramatic shift to become a branded cannabis producer in the fiscal year 2022, from a largely wholesale business-to-business supplier in fiscal year 2020. The move resulted in an increase in the average net realized price per gram and an improvement in the branded cannabis gross profit margin.

Branded cannabis represented 85% of total net revenue in the fiscal year ending March 31, 2022, compared to only 40% in the prior fiscal year. The quality of the company’s revenue base increased significantly driven by the growth in sticky, highly recurring medical sales, adult-use market share capture which drives continued end-user demand for the company’s branded consumer products, and the continued build-out of its international sales platform.

“For the fiscal year ended March 31, 2022, the Aleafia Health team once again demonstrated its relentless drive toward steadily increasing market share in branded adult-use and medical cannabis along with strong international sales growth,” said Aleafia Health CEO Tricia Symmes. “We continued our decisive quarter over quarter upward sales trajectory from Q4 to Q5 with adult-use market share rankings rising an additional two positions from 15th to 13th. The company is now positioned to become a Top 10 Licensed Producer. Aleafia Health had exceptionally strong growth year over year in retail adult-use market share, as part of a successful end to a transformative fiscal year. The company delivered a top 3 market share rank increase among the 20 largest Canadian Licensed Producers, from 28th in Q1 2021 when the company launched the Sunday Market House of Brands, to 13th in the most recently completed quarter.”

Cutting Costs

“The Company underwent a complete top-to-bottom organizational realignment which saw a 30% reduction in the workforce, integrated the medical business to deliver a cohesive and consistent patient experience, turned around its Grimsby greenhouse to focus on high-potency usable flower, and wound down many of the legacy consultants, contracts and non-recurring costs related to the Sunday Market House of Brand build-out,” said Aleafia Health CFO, Matt Sale. “With significant cost rationalizations enacted over the fiscal year, and continued cost containment initiatives underway, the Company is on track towards Adjusted EBITDA profitability in the second half of fiscal year 2023.”

The company said it has aggressively contained and rationalized its Adjusted SG&A cost profile, resulting in a 26% decline to $7.3 million in the three months ended March 31, 2022, compared to $9.8 million in the prior year.

“Our current annual run-rate net revenue of approximately $43 million is primarily underpinned by $28 million in adult-use branded cannabis and $11 million in medical and international revenue. In the current quarter, I am pleased to announce that we have significantly increased our sales generation sequentially, as the company has $11.0 million in purchase orders from its four provincial authorities to which it supplies cannabis products, an increase of 22% or $2.0 million over the quarter ended March 31, 2022. In the year ahead one of our goals is to add to our provincial supply relationships and deepen our product lines within our existing store partners which are expected to increase overall net revenue and total gross profits. With our strategic growth projects underway we remain confident we can deliver on our previously issued guidance of between $53 and $63 million in total net revenue in fiscal year 2023.”

StaffMay 24, 2022
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8min2890

The Daily Hit is a recap of the top cannabis business stories for May 24, 2022.

ON THE SITE

Live Blog from WEF 2022 in Davos Switzerland

Green Market Report editor-in-chief Debra Borchardt blogs live from the Medical Psychedelics Series, at the World Economic Forum being held in Davos Switzerland. Read more here.

MedMen Wins Suit Against Whitestar

MedMen Enterprises Inc. (CSE: MMEN) (OTCQX: MMNFF) won its lawsuit against Arizona-based Whitestar Solutions, LLC. According to a statement,  Whitestar filed a lawsuit in March 2020, related to a Membership Interest Purchase and Sale Agreement governing the purchase of EBA Holdings, Inc. dba MedMen Scottsdale. Whitestar alleged fraudulent inducement and breach of contract, among other claims, and sought rescission of the underlying transaction or $60 million in alleged monetary damages. Read more here.

Illegal Cannabis Lounges in NYC

These consumption lounges are operating without licenses and it seems the city and state don’t care. Since the adult-use license program hasn’t been written and approved, these operations are technically violating the law. No law means no violations. So there really isn’t anything law enforcement can do. These lounges range from the first to market Happy Munkey to pop-up neighborhood lounges that are often located next to illicit street sellers. Read more here.

Psychedelics Companies

As the industry matures, there are clear leaders in the pack of psychedelics companies who are positioned to continue driving industry development. Compass Pathways, Atai Life Sciences, and Cybin are generally considered the top three companies in the industry, asserting their dominance in the market, with Field Trip Health and Seelos Therapeutics as psychedelics companies to watch. Read more here.

IN OTHER NEWS

Aleafia Health Inc.

Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) is pleased to announce that its upward trend in market share, purchase orders, and new SKU launches has continued in 2022’s first four months, following on from the growth in the quarter ended December 31, 2021. The Company has seen strong advances in its largest adult-use categories: flower, pre-rolls and vapes. Read more here.

Curaleaf Holdings, Inc.

Curaleaf Holdings, Inc. (CSE: CURA /OTCQX: CURLF), an international provider of consumer products in cannabis, will begin adult-use sales at its Edgewater Park, New Jersey dispensary on May 25. Located at 4237 US-130, Curaleaf Edgewater Park is now the Company’s second location to sell adult-use cannabis in the Garden State. Read more here.

Rubicon Organics Inc.

Rubicon Organics Inc. (TSXV: ROMJ) (OTCQX: ROMJF), a licensed producer focused on cultivating and selling organic certified, premium cannabis, today reported its financial results for the first quarter ended March 31, 2022. “Rubicon Organics is at a turning point in 2022, with higher yields and increased quality coming from our Delta Facility, whilst remaining cost-conscious we are driving to being profitable in 2022.” Read more here.

RIV Capital Inc., Etain LLC

RIV Capital Inc. (CSE: RIV) (OTC: CNPOF) today announced that it had received notice of an Ontario Superior Court of Justice application by JW Asset Management in connection with the Company’s process regarding its acquisition of ownership and control of Etain, LLC and Etain IP LLC, owners and operators of legally licensed cannabis cultivation and retail dispensaries in the state of New York. JWAM, an investment firm focused on the pharmaceutical and cannabis industries, is the holder of approximately 20.4% of the Company’s issued and outstanding Class A common shares. Read more here.

Pharmagreen Biotech, Inc., Long Valley Farms

Pharmagreen Biotech, Inc., (OTCQB: PHBI), which provides starter plantlets utilizing a proprietary tissue culture process, “Chibafreen,” to licensed cannabis cultivators and CBD/CBG hemp farmers, announced that it has completed another significant milestone in the business development with Long Valley Farms. Pharmagreen has advanced the next tranche of funds, whereby the use of proceeds is for the continuous application process for the LVF micro-business license and its nursery licenses in addition to the current cultivation license. PHBI anticipates having the permits in place within the following few months, depending on the regulator’s schedule. Read more here.

Avicanna Inc.

 Avicanna Inc. (TSX: AVCN) (OTCQX: AVCNF) (FSE: 0NN) a biopharmaceutical company focused on the development, manufacturing and commercialization of plant-derived cannabinoid-based products is pleased to announce that, through its majority owned Colombian subsidiary, Santa Marta Golden Hemp S.A.S., SMGH has completed its first commercial export of high concentration THC and high concentration CBD full spectrum psychoactive cannabis extracts to Portugal. Read more here.

Eden Empire Inc.

Eden Empire Inc. (CSE: EDEN) announced the signing of a non-binding letter of intent agreement with Plantvida located in Colombia. The agreement dated May 20th, 2022, is made by and between Eden Empire Inc. and Plantvida. The Plantvida SAS project located in north-western Cundinamarca, Colombia, is dedicated to implementing strategic social business, bringing safe, natural and ecologically friendly wellness products to the emerging cannabis business with the goal of providing work and social benefits to the community, such as education, unemployment, health, housing and security. Read more here.

Abaca

Arkansas-based cannabis financial technology firm Abaca has expanded coverage bringing digital-first banking, payment and treasury management solutions to Mississippi’s cannabis industry. Integral in banking 95 percent of Arkansas’s cannabis industry since day one and hundreds of cannabis clients across the country, Abaca is uniquely positioned to support Mississippi. Read more here.


Debra BorchardtApril 5, 2022
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Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) is going to be laying off employees as the company looks to save money and stick to its revenue goals. Aleafia said it can save $4.4 million by cutting more heads and becoming more efficient. The company said by implementing these efforts in this quarter, it can reach its previous guidance for revenue between $53 and $63 million for the current fiscal year. Aleafia also said that Adjusted EBITDA breakeven profitability is expected to occur in the second half of 2022.

“Aleafia Health continues to deliver on its forecast and strategy, experiencing record growth in sales, capturing additional adult-use cannabis market share, and now achieving important efficiencies and additional cost reductions,” said Aleafia Health CEO Tricia Symmes. “These organizational realignments helped create a leaner, more nimble workforce optimized to accelerate revenue velocity and maximize margin. It’s just the beginning of creating a new company whose products are focused on the highest revenue-generating branded dried flower, pre-roll, and vape product categories as consumers continue to express strong interest in our Sunday Market House of Brands adult-use cannabis products.”

In February, Aleafia began cutting employees, representing approximately 10% of the workforce and approximately $1.9 million in annualized savings.  The company also reviewed its inventory and fixed assets and identified certain slow-moving assets primarily related to the bulk wholesale sales channel. As a result of the company’s pivot towards focusing on branded cannabis products, the company recorded a $19.6 million inventory provision. The company also recorded a $28.8 million impairment of property, plant & equipment due to changes in market conditions for these assets.

As part of the organizational realignment, Aleafia noted that previously its clinics operated independently from one another. Now it operates a national virtual clinic and several physical clinics serving a base of over 20,000 active patients and receives referrals from third-party providers. Symmes said, “By rightsizing and integrating them, the clinics now form a comprehensive medical cannabis strategy, which is seeing strong, consistent market demand. There is also continued uptake in our newest markets: Quebec, Veterans and third-party patient-acquisition platforms. We are well-positioned to continue to outperform the market where in 2021 we delivered 33% medical cannabis net revenue growth.”

Aleafia Health CFO Matt Sale said, “In the quarter ending December 31, 2021, the company reported reducing its adjusted selling, general, and administrative (SG&A) expenses by 37% to $7.1 million, from $11.2 million in the period ending December 31, 2020. Management continues to build on that momentum with aggressive cost containment. In the quarter ended March 31, 2022, the company identified further headcount reductions, operational efficiencies, redundancies, and nonrecurring costs, which together with those already implemented, total $6.7 million on an annualized basis. This demonstrates the company’s unwavering commitment to drive profitability and achieve a sustainable business model. We foresee continued tailwinds to improve our margin profile and drive towards achieving our target of break-even Adjusted EBITDA profitability later this year.”


StaffNovember 11, 2021
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Aleafia Health Inc. (OTCQX: ALEAF) reported its financial results for the three ending September 30, 2021 as revenue increased 123% to $9.4 million. Still, Aleafia reported an eye-popping net loss of $82.9 million versus last year’s net loss of $19.8 million. The company attributed the increase in net loss over the prior year’s quarter to non-cash items including a $53.1 million impairment of intangible assets and an $11.3 million impairment of goodwill.

“Our momentum in the adult-use cannabis sector has continued with our strongest quarter to date by a significant margin,” said Aleafia Health CEO Geoffrey Benic. “Consumer demand for our portfolio has been clearly demonstrated as we now begin to capture meaningful market share, entering the top 10 nationally in the pre-roll, edible, and oils categories. Most importantly, we’ve realized a five-fold sequential increase in dried flower market share during the quarter, in a category that is both Canada’s largest and one that leverages our low-cost cultivation advantage.

Net bulk wholesale revenue received from sales to cannabis licensed producers fell to $1.9 million, versus $3.1 million and $2.1 million in the previous and prior year’s quarters, respectively. The negative gross margin in the bulk wholesale segment during the quarter of 169% is attributable to the company recording of an inventory provision for a slow-moving inventory of $2.4 million expensed to cost of sales, and the opportunistic sale of aged CBD distillate, due to a greater focus by the company on THC dominant SKUs.

Medical cannabis net revenue for the quarter fell by 23% sequentially to $2.5 million and a 31% increase over the prior year’s quarter. The sequential decline was due to seasonally lower prescriptions written and filled during the summer months and a decline in international medical cannabis sales during the quarter.

“The outdoor cultivation harvest, our third to date, has yielded a material improvement in potency, providing us with a high-quality THC-dominant dried flower for use in our milled and pre-roll product formats. This is expected to significantly improve our available supply of top-selling SKUs, which consistently sell-out in adult-use markets. In 2020, we undertook capital improvements to the outdoor facility while running a cultivar R&D testing program, which has resulted in new, high-potency strains that will enter our portfolio and provide strong momentum heading into the new year.

Focus On THC 

After the quarter closed, the company completed the harvesting of its 2021 outdoor cannabis facility in Port Perry. Testing and weighing of CBD-dominant and CBD/THC balanced cultivars, which represented the vast majority of the total weight harvested, remains underway. Cannabinoid testing results of THC dominant dried flower indicate a significant improvement in potency and total kilograms harvested that can be made available to sell in the adult-use market in pre-roll and milled formats. A total of 11,600 kgs with an average THC potency of 22% will be allocated for sale in the adult-use market, primarily under Aleafia Health’s everyday cannabis brand Divvy.

By contrast, in 2020, the company harvested 7,200 kgs of THC dried flower, but only 7% of this harvest exceeded THC potency of 20%, a key threshold in the adult-use market. The material improvement in potency and yield is attributed to additional cultivars introduced in 2021, following R&D testing in 2020, along with improvements in site infrastructure.


StaffMay 11, 2021
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Aleafia Health Inc. (OTCQX: ALEAF) reported its financial results for the three months ended March 31, 2021. Revenue fell 55% from last year’s $13.7 million to this year’s $6.2 million. most of the decline was due to an 84% drop in bulk wholesale cannabis sales. Aleafia also reported that its net losses increased from last year’s $6.1 million to this year’s $11.2 million.

“This quarter saw us achieve important executional breakthroughs as we realized the exponential increase of our cannabis product portfolio. Likewise, as we benefit from greater scale, we are demonstrating substantial improvements in the profitability of our core adult-use and medical cannabis product sales, contrasting with the broader industry trend of price and margin compression,” said Aleafia Health CEO Geoffrey Benic.

“To further leverage product portfolio expansion, we have only just begun the deployment of our highly differentiated medical cannabis ecosystem through the trailblazing exclusive agreement with Unifor, Canada’s largest private sector union. The ability to service a captive audience of union members who receive insurance coverage for medical cannabis is an important catalyst. We believe that this sets the table for a strong 2021, driven by repeatable, profitable sales in the medical, adult-use and international markets.”

Revenue Breakdown

The company had warned investors that its wholesale business would decline and while its other cannabis increased, the numbers aren’t quite as large as the wholesale figures.

Medical cannabis net revenue increased 95% to $2.7 million, in line with the previous quarter, and the company’s best Canadian medical cannabis revenue reported to date. Active registered patients increased to 17,637, an increase of 61% over the prior year’s quarter. Medical cannabis adjusted gross margin before FV adjustments improved for the second consecutive quarter to 53%. Revenue per gram equivalent sold improved for the fourth consecutive quarter to $8.46

Adult-use cannabis net revenue rose 22% to $1.7 million and 143% over the previous quarter and prior year’s quarter respectively. Adult-use cannabis adjusted gross margin before FV adjustments improved substantially to 56%, from 31% and 30% in the previous quarter and prior year’s quarter respectively. Adult-use cannabis revenue in the first 41 days of the second has surpassed total adult-use cannabis revenue for the first quarter of 2021.


StaffFebruary 2, 2021
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5min2190

Sundial Growers

Sundial Growers Inc. (NASDAQ: SNDL) has closed a best efforts underwritten registered offering of 100,000,000 Series A Units with gross proceeds from the offering coming at approximately $100 million, before deducting underwriting discounts and estimated offering expenses. In addition to that announcement, Sundial also said that it has priced a best efforts underwritten registered offering of 60,500,000 Series A Units raising $74.5 million. The exercise price of the Series A Warrants will be $1.10 per common share.

“Sundial’s current balance sheet and liquidity enable management to focus on delighting consumers while providing significant optionality to participate in North American consolidation,” said Sundial’s CEO, Zach George. “We are grateful for continued investor support as we pursue attractive capital allocation opportunities within the emerging cannabis industry.”

Following the closing of the offering and the expected closing of the additional units offering of US$74.5 million announced today, Sundial will have unrestricted cash of approximately $615 million, in addition to marketable securities and loans receivable of approximately $57 million, and approximately 1.52 billion common shares outstanding.

Aleafia Health

Aleafia Health Inc. (OTC: ALEAF) announced the full repayment in cash of its 8% unsecured convertible debt, which matured on February 2, 2021. Emblem Corp., which issued the Convertible Debt on February 2, 2018, was acquired by the Company on March 14, 2019.

“Our team is excited to see continued cannabis sales growth in 2021, driven by new products launched late last year,” said Aleafia Health CEO Geoffrey Benic. “The adult-use, medical and international cannabis markets are the pillars of our 2021 growth strategy, and we look forward to capitalizing on this global opportunity through the continued expansion of our cannabis product portfolio.”

In a statement, Aleafia gave the following update on the company’s businesses:

  • Medical Cannabis: Q4 2020 represents Aleafia Health’s best medical cannabis sales quarter to date. The company expects to continue this growth trajectory in 2021 with a more diverse product mix, expanded same-day delivery service which is critical during Covid-19, and through its strategic partnership with Unifor, Canada’s largest private sector union. In January, traditionally a month with slower demand, the company observed its fourth consecutive monthly record for medical cannabis revenue.
  • Adult-use Cannabis: The company’s adult-use market strategy, coupling an expanded product portfolio and dedicated sales team with deep cannabis experience, is now delivering promising results. In the first month of 2021, adult-use purchase orders have nearly surpassed the total order value in Q4 2020, driven in part by sales of an innovative product, Kin Slips® sublingual strips. Shipments to additional provincial markets are also expected to commence in the near term.
  • International Cannabis: Following the completion of its largest international cannabis shipment in Q4 2020, the Company has entered into supply agreements with new strategic partners in the European Union and Israel, significantly expanding international cannabis sales. Purchase orders for both markets, and a new order from Australia, are being processed, with the timing of delivery depends on the receipt of necessary import and export permits.
  • Product & Brand Development: The launch of new product formats and strengthening of core lines has substantially driven sales growth in early 2021. Further product development is also underway, with the near term launch of soft chews and new dried flower cultivars. Later this month, the company plan to provide further details on a much broader expansion of its adult-use brand and product portfolio. This will be led by new brands tailored to specific consumer segments, each featuring novel and high-demand formats, aligned with the needs of Canadian consumers.

StaffNovember 11, 2020
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3min1340

Aleafia Health Inc. (OTC: ALEAF) reported its financial results for the quarter ending September 30, 2020, with net revenue of $4.9 million and revenues were flat from the quarter ending in 2019. The company delivered a net loss of $19.7 million versus a positive net income of $1.9 million and a loss of $29.8 million, in the same periods in the prior year. The net loss was attributed to a non-cash $14.3 million adjustment of saleable inventory to net realizable value during the quarter, to reflect a significant decline in cannabis wholesale prices.

“We expect to have our strongest quarter to date in Q4 2020 as we progress towards significant sequential growth in medical, adult-use, wholesale and international cannabis sales. The strategic path we’ve executed upon, from building out facilities, to receiving three major licenses in 2020, to formulating new products, is now bearing fruit. With the introduction of vape cartridges, sublingual strips, and with many more launches to come, the commercialization of our business at scale is truly in full swing,” said Aleafia Health CEO Geoffrey Benic.

The company was more intent on telling investors that the revenue was set to improve. Aleafia said it had contracted sales that would generate net revenue of $16 million. It said it is expected that the majority of the domestic wholesale shipments will be completed in the three months ended December 31, 2020, with the remainder shipping to customers early in the first quarter of 2021. In addition to the $16 million in cannabis sales Aleafia said it also expects to see significant growth in the adult-use and medical channels. With incremental revenue generated by new product launches, and a 32% sequential increase in active, registered patients during the third quarter, the company said it expects to report record medical cannabis net revenue during the fourth quarter, along with strong growth in adult-use revenue.

Benic added, “With respect to the most recent quarter, the successful sale of our entire 2019 outdoor crop was completed earlier in the year, which led to a significant sequential decline in cannabis revenue, due to lack of available product. This was coupled with a number of significant product launches that only began generating revenue following the end of the reporting period.”


William SumnerApril 29, 2019
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6min1850

It’s time for your Daily Hit of cannabis financial news for April 29, 2019

On The Site

Aleafia Health

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.

Canopy Growth

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC) announced a key milestone in establishing its Hemp Industrial Park in the Southern Tier region of New York State. It has secured a 308,000 sq. ft. facility on a 48-acre property in Kirkwood, NY. The company said that design development would begin immediately with construction expected to start this summer.

Origin House

Canada-based Origin House (once known as CannaRoyalty Corp.) (CSE: OH) (OTCQX: ORHOF) reported its fourth quarter and year-end results ending in December 2018 in Canadian dollars. The fourth quarter saw revenues of $7.9 million an increase of 638% over last year’s $1.1 million for the same time period. The net loss for the quarter was $6.1 million.

In Other News

Charlotte’s Web Holdings

Charlotte’s Web Holdings Inc. (CSE: CWEB) (OTCQX: CWBHF) has a new CEO. The company announced today that Adrienne “Deanie” Elsner would sign on as its Chief Executive Officer effective May 15, 2019.  Elsner previously served as President of Kellogg’s $3 billion Snack Business Unit. Before joining Kellogg, Elsner worked at the Kraft Foods Company and held various leadership positions, including Executive Vice President and Chief Marketing Officer. Elsner was also named by Forbes as one of the 50 Most Influential Global CMOs. “Deanie’s appointment is timely and aligns perfectly with our corporate evolution from the early stage organization we were just two years ago into a professionally managed public company with top-tier executive talent,” said Hess Moallem, current President and CEO of Charlotte’s Web. Moallem will stay on with the company in an advisory position.

New Leaf Data Services

New Leaf Data Services (NLDS), and the Cannabis Mercantile Exchange (Cannamerx) have signed a data-sharing agreement, upon which Cannamerx will provide NLDS with real-time data generated by its international cannabis and hemp trading platform. NLDS will incorporate the platform into its Cannabis Benchmarks® and Hemp Benchmarks® wholesale price assessments. NLDS will help Cannamerx market its international wholesale cannabis & hemp products auction platform, which includes informing its business partners and subscribers about the benefits of using Cannamerx platform. “We are pleased to have entered into this agreement with Cannamerx, which will expand and deepen the wholesale pricing data that is the foundation for our institutional grade Cannabis Benchmarks and Hemp Benchmarks,” commented NLDS CEO Jonathan Rubin.

Cannara Biotech

Cannara Biotech (CSE: LOVE) (FRA: 8CB) has announced its financial results for the three month and six-month periods ended February 28, 2019. Cannara ‘s revenue for the three-month period was $518,438 and for the six-month period was $1,036,881. The net loss for the three month period was $4,011,926 or $0.01 loss per share. The net loss for the six-month period was $6,317,152 or $0.01 loss per share. The company also raised $37,375,268 via private placement in exchange for 207,640,375 common shares. “Financially, Cannara is very solid, with all costs associated with Phase one construction fully funded and most stabilized operating costs offset by lease revenue,” said Lennie Ryer, CFO of Cannara. “Built for the long run, the next few quarters will be eventful as we complete construction and advance towards the goal of ongoing revenues from our state-of-the-art production and processing facility.


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