Aleafia health Archives - Green Market Report

StaffFebruary 13, 2023

The Daily Hit is a recap of the top financial news stories for February 13, 2023.

On the Site

SNDL Lays Off Alberta Grow Employees, Focuses on Premium, Alcohol Brands

SNDL Inc. (Nasdaq: SNDL) will wind down its Alberta operations and lay off 85 facility employees, the company announced on Monday. The Canadian grow giant said that it would be “rightsizing” its cannabis cultivation site in Olds, Alberta, in order to focus on premium products and brands. Read more here.

Aleafia Health Trims Workforce 20%, Despite Rising Revenue

Aleafia Health Inc. (TSX: AH) (OTCQB: ALEAF) touted its profitability as the Canadian licensed producer managed to grow its different revenue channels, despite having to shore up costs and lay off 20% of its full-time payroll. Read more here.

Washington D.C. Businesses Optimistic About Upcoming Industry Expansion

In coming months, the city’s seven licensed dispensaries and nine licensed growers will be joined by an unknown number of gray market “gifting” businesses that have been operating in a quasi-legal jurisdiction for years. Read more here.

Future Looks Bright for Small Cap Cannabis

The author of a year-end letter to cannabis investors expects smaller cannabis companies to have an easier path than multistate operators going forward. Read more here.

C21 Opts to Not Dilute Shares

While most cannabis companies issue shares like it’s Monopoly money, Canadian operator C21 Investments Inc. (CSE: CXXI) (OTCQX: CXXIF) is choosing to work against further share dilution instead. Read more here.

Alleaves Buys BioTrack for $30 Million to Enter Growing New York Market

Health care software provider Forian Inc. (Nasdaq: FORA) has sold its cannabis software subsidiary, BioTrack, to rising cannabis tech firm Alleaves Inc. for $30 million in cash. Read more here.

In Other News

Gage Cannabis Co./Cookies

TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF) launched adult-use cannabis sales at its Cookies Detroit retail location. Through its subsidiary Gage Cannabis Co., the company will now provide adult-use customers in Detroit with access to high-quality products. Read more here.

Auxly Cannabis Group

Auxly Cannabis Group Inc. (TSX: XLY) (OTCQB: CBWTF) entered into an agreement with institutional investors pursuant to which the investors have agreed to purchase, on a private placement basis, 96 million common shares of the company at a price of $0.035 per common share and 96 million common share purchase warrants, with each warrant entitling the investors to purchase one common share at an exercise price of $0.045. Total gross proceeds will reach approximately $3.36 million, before deducting any applicable advisor or finder fees or offering expenses. Read more here.

Debra BorchardtMarch 25, 2021

Aleafia Health Inc. (OTC: ALEAF) reported net revenue of $15.4 million in the fourth quarter versus $6 million for the same time period in 2019. The net loss though was a whopping $217.3 million versus last year’s net loss of $9.8 million. Aleafia wrote-down $176.0 million of goodwill associated with the acquisition of Emblem Corp., and $1.4 million of goodwill associated with the acquisition of Canabo Medical Corp.

For the full year, Aleafia Health reported net revenue of $44.5 million versus $16.3 million in 2019. Due to the losses in the fourth quarter, the full-year net loss clocked in at $247 million versus 2019’s $39.6 million.

The company said that the net loss was primarily due to non-cash items including fair value changes in biological assets and changes in inventory sold expense of $11.1 million for the quarter and $29.1 million for the full year. Included in the full year amount is a $17 million write-down to net realizable value of saleable inventory to reflect declining wholesale prices.

Aleafia Health CEO Geoffrey Benic said, “Notwithstanding certain non-cash, one-time expenses, our focus on disciplined, profitable growth has paid dividends with our first year of positive adjusted EBTIDA. The commercialization of our business is rapidly accelerating with the shift in revenue mix towards the sale of highly profitable packaged cannabis products providing a sustainable source of continued growth.”

Wholesale Business Climbs

The company said that the net bulk wholesale revenue received from sales to cannabis licensed producers for the quarter and full year was $10.0 million and $29.9 million, an increase of 256% and 783% respectively, over the same periods in the prior year. The increase was primarily due to the sale of flower harvested at the Port Perry Facility’s outdoor cultivation site to other LPs, and a larger harvest in 2020 relative to the prior year, yielding 31,200 kgs of dried flower.

Write Downs

Aleafia said that during the quarter, it incurred a $22.1 million write-down of intangible assets expense. This included a $10.6 million write-off associated with its 51% interest in the Flying High Brands joint-venture. The company said it is now primarily developing its brands and products in-house, rather than licensing them from other cannabis companies.

Debra BorchardtMay 13, 2020

Aleafia Health Inc. (OTC: ALEAF) reported its financial results for the first quarter ending March 31, 2020, with revenue increasing 143% sequentially to $14.6 million. Aleafia said that it was due to an $8.9 million increase in cannabis net revenue which was 859% more than the 2019 first quarter.

The company also delivered a net loss of $6.2 million, which has been trimmed sequentially from a net loss of $9.8 million. The company attributed the net loss to non-cash items including changes in the fair value of inventory sold, expenses of $6.2 million, amortization and depreciation expenses of $2 million, and a deferred income tax expense of $1.7 million.

“Our disciplined, sustainable growth has resulted in a breakthrough quarter for Aleafia Health. Our patient-centric approach remains at the core of our business as we build our cannabis health and wellness ecosystem,” said Aleafia Health CEO Geoffrey Benic. “The prudent allocation of capital instituted over the course of 2019 is reflected in streamlined expenses, a fifth consecutive quarter of solid revenue growth, and industry-leading gross margin among North American cannabis industry reporting issuers. ”

COVID-19

On April 17, 2020, Aleafia provided a comprehensive corporate update on business operations, including changes in operations due to the COVID-19 pandemic. The most significant change in operations to date has been the temporary closure of the physical offices of the company’s national network of cannabis clinics and education centers since March 16. The company noted that all patient consultations are now completed using virtual clinic services with no significant increase or decline in the number of patients seen due to the closure of physical locations.

Earlier this week, Aleafia announced that it had entered into an agreement with Eight Capital on a “bought deal” offering for shares priced at $0.65 for gross proceeds of $13 million. The company also reported that it had secured a Health Canada Licence Amendment for its Port Perry Facility’s outdoor cultivation expansion. The expansion adds an additional 60 acres of outdoor cultivation area, bringing the total to 86 acres (3.7 million sq. ft.) The amendment was granted on May 12, 2020, expires on October 13, 2020, and authorizes cannabis cultivation in “Outdoor Grow Area 5.

Benic added, “With a fully licensed infrastructure now in place, we look forward to leveraging our lean, integrated production ecosystem for operational and financial success. In the second half of 2020 we look forward to introducing an exciting roster of new Cannabis 2.0 product formats tailored to health and wellness consumers while further expanding the reach of our existing product portfolio.”

Debra BorchardtMarch 18, 2020

Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) delivered its financial results for the 2019 fourth quarter and fiscal year with a 22% sequential increase in quarterly net cannabis revenue to $6 million. Aleafia said the increase was primarily due to a $1.0 million jump in cannabis revenue.

For the fiscal year, net revenue was $16.4 million, an increase of 391% over the previous year. The increase was attributed to an $11.0 million increase in net cannabis revenue, along with an increase of $2.0 million in clinic revenue.

The fourth-quarter net loss was $9.8 million versus $1.9 million in the previous quarter. This loss was primarily due to non-cash items including a decline of $8.0 million in unrealized gain on the fair value of biological assets compared to Q3 2019, and a non-cash $3.6 million deferred income tax expense in the quarter.

“Our disciplined, sustainable growth has paid dividends in 2019 in a tremendous year for Aleafia Health. Our patient-centric approach remains at the core of our business as we build our cannabis health and wellness ecosystem,” said Aleafia Health CEO Geoffrey Benic. “These results again demonstrate the strength of our team in executing on this vision during a period of rapid and dynamic industry change.”

The company did manage to cut costs. SG&A expenses dropped by 11% sequentially to $4.3 million in the quarter. This increased efficiency is the result of the company’s focus in FY 2019 on prioritized sustainable growth and cost and expense management. The company said it had $41.2M cash and cash equivalents on December 31, 2019.

Benic added, “The prudent allocation of capital instituted over the course of 2019 is reflected in streamlined expenses, a fourth consecutive quarter of solid revenue growth, and industry-leading gross margin among North American cannabis industry reporting issuers. Looking forward, we expect to make continued progress in 2020 as we bring new, differentiated health and wellness product formats to market and expand our patient ecosystem at home and abroad.”

Since the quarter has ended, Aleafia Farms received a Health Canada Cultivation License for the Niagara Facility. The License authorizes cannabis cultivation, propagation, harvesting and sales in Building 1, which includes 50,000 sq. ft. of greenhouse area and 20,000 sq. ft. for post-cultivation operations. These include drying, storage and shipping and support for outdoor cultivation.

Debra BorchardtSeptember 24, 2019

Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) told the market on Tuesday that it will achieve positive net income for the quarter ending September 30, 2019. The company also stated that it had $51 million in cash on hand.

“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.”

Aleafia said that now has over 10,000 active, registered medical cannabis patients, an increase of over 3,000 patients or 42% over July 2019. In addition to that, the company’s the first prescription from a physician for an Aleafia Health product was written earlier this month in Australia and the Paris processing facility Phase Two expansion is expected to be complete next month allowing for the export of cannabis products to the European Union.

With regards to productsion, harvesting is expected to begin in two weeks at the Port Perry facility, whose exansion phase is expected to be finished this November. 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 infrastructures including trimming & drying room, shipping, and disposal areas are entirely complete.

Debra BorchardtJuly 2, 2019

International expansion is the words of the day as several companies announced plans to reach beyond the borders of Canada and the U.S. It seems Colombia is where all the action is.

MJ Freeway

MJ Freeway, a subsidiary of Akerna Corp. (NASDAQ: KERN) said it is expanding further into Europe by serving clients in two additional countries, Italy and Macedonia. The company also recently opened a Medellín, Colombia office to serve its growing footprint in South America. MJ Freeway client, Clever Leaves, is the first Colombian company authorized to export cannabis into Canada.

“We believe it is imperative for countries with emerging cannabis businesses such as Italy and Macedonia to have access to our compliance technology,” says Jessica Billingsley, CEO of Akerna and MJ Freeway. “By giving governments, businesses, and consumers the tools needed to productively manage regulatory demands, we are able to execute our plan to connect data points across the global cannabis supply chain.”

The company stated that Macedonia is one of the few countries in the world to approve medical cannabis for cultivation and export. Italy has significantly increased its hemp production to serve its growing domestic market for industrial products and infusing in cosmetics and other consumer goods. As a result of the expansion into Italy and Macedonia, MJ Freeway has increased its footprint to five European countries including Spain, Switzerland and Denmark.

MYM Nutraceuticals Inc.

MYM Nutraceuticals Inc.(CSE: MYM) (OTCBB: MYMMF) announced that its subsidiary in Colombia, Colombia Organica S.A.S signed agreements in principle to cultivate both THC and CBD-rich cannabis with independent farmers for an initial five acres. The company said in a statement that cannabis will be cultivated by farmers who will be licensees under the existing Colombia Organica cannabis cultivation licenses. The first crops cultivated on the initial five acres will function as test crops with the intention to add subsequent acreage.

“Our team in Colombia has begun to execute on our plan to cultivate both THC and CBD-rich cannabis in South America,” said Howard Steinberg, CEO of MYM. “The strategy of extending our licenses to neighboring farmers to cultivate cannabis will serve to increase our biomass supply that we intend on processing and exporting to the global market.”

The farmers will be responsible for all costs associated with cultivation from seed to sale. Colombia Organica agrees to purchase the harvested biomass at a price to be determined at the time of delivery based on the average market price at that time.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF)(OTC: ALEAF) said it received multiple Export Permits from Health Canada, which allow the Company to begin its first international cannabis product shipment. Aleafia said it expects to ship its branded medical cannabis oils in the next month, which will be distributed by Australian Licensed Producer CannaPacific Pty. Limited. Aleafia Health owns a 10 % equity stake in CannaPacific.

“The receipt of Health Canada Export Permits enables Aleafia Health to sell high-margin, value-added cannabis products across international borders for the first time, representing a major milestone as we augment our global distribution platform,” said Aleafia Health Chairman Julian Fantino. “We continue to prove the international viability of our highly differentiated cannabis health and wellness ecosystem with products, clinic operations, education and distribution. With among the largest cultivation and extraction footprints in Canada coming online, we will continue to look to new international markets.”

“This is such a tremendous milestone for CannaPacific. Our relationship with Aleafia Health continues to accelerate our strategic vision of leadership in the Australasian medical cannabis market,” said CannaPacific CEO Joshua Dennis. “We have the facility, the proven management team, and now the product portfolio to continue executing towards our goal.”

William SumnerJune 27, 2019

It’s time for your Daily Hit of cannabis financial news for June 27, 2019.

On the Site

Green Growth Brands

After a trial period of selling the Green Growth Brands Inc. (CSE: GGB) (OTCQB: GGBXF) CBD line called Seventh Sense Botanical Therapy products, Abercrombie & Fitch (A&F) has decided to carry the products in 160 stores. The expansion includes Seventh Sense’s CBD-infused body lotions, muscle balms, lip balms, and sugar scrubs, and is Green Growth Brands’ second major wholesale agreement since the passage of the Agriculture Act of 2018 in December 2018.

Executive Spotlight: Dr. Jared Helfant, Co-Founder and President of Sparx Cannabis

At Sparx, Dr. Helfant applies his expertise to oversee operations, branding, and marketing. With a proven track record of providing top-tier, customer-facing services and long-term strategic planning, his knowledge helps facilitate budget analysis, marketing strategies, and partner relationships.

In Other News

Surterra Wellness

The medical cannabis company Surterra Wellness announced that it had closed a $100 million Series D funding round. So far, the company has raised over $300 million in private capital. Proceeds from the funding will go towards expansion initiatives such as strategic acquisitions and infrastructure capital expenditures. Surterra also announced that it had expanded its board of directors to include Ed Brown, Surterra’s Executive Director, and its Executive of Operations, Kevin Fisher.

Curaleaf

Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) announced today that it had acquired both Glendale Greenhouse and Phytotherapeutics Management Services, LLC. Glendale Greenhouse is a vertically integrated cannabis business operating a cultivation and processing facility with a 20,000 square foot production facility capable of producing 3,600 pounds of flower annually. Glendale also owns a 1,500 square-foot dispensary and the master lease on the 15,000 square-foot multi-tenant building where the dispensary is located. Phytotherapeutics Management Services, LLC operates under the license of Phytotherapeutics of Tucson, LLC. Once the transaction is closed, the Phytotherapeutics’ license would be transferred to Curaleaf and apply to a newly developed, flagship dispensary.

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) (FRA:ARAH) has closed a $40.25 million over-subscribed public offering. Leading the offering was Mackie Research Capital Corporation and BMO Capital Markets, and included Canaccord Genuity Corp. “We are excited to close this financing and strengthen our balance sheet as we solidify and accelerate the expansion of our cannabis health and wellness ecosystem, in Canada, and globally,” said Aleafia Health CEO, Geoffrey Benic. “This is a key step enabling management to execute on its business plan and to drive operational results creating value for shareholders.”

William SumnerJune 6, 2019

It’s time for your Daily Hit of cannabis financial news for June 6, 2019.

On the Site

Cresco Capital Partners

Cresco Capital Partners (Cresco Capital) announced today that it has closed an oversubscribed fund of $60 million. Founded in 2014, Cresco Capital was one of the first and largest private equity firms to focus solely on the legal cannabis industry.

Italian court bans cannabis derivatives, in blow to popular sector

Italy’s top court has banned the sale of cannabis products, on the heels of threats by the country’s deputy prime minister to close shops who sell legal derivatives of the plant. Deputy Prime Minister and far-right League leader Matteo Salvini had declared war on so-called “cannabis light” shops in the run up to the European Parliament elections.

In Other News

Harborside

Harborside Inc. has announced that it has filed its listing statement with the Canadian Securities Exchange and that it will begin trading shares of the company on June 10, 2019 under the ticker symbol “HBOR.” “The start of trading represents a significant milestone for Harborside, and we’re grateful for the support that we’ve received from the CSE throughout the process,” said Harborside CEO Andrew Berman. “We’re excited to move forward as a public company, with a vehicle that attracts growth capital from new investors, and continue maintaining Harborside’s status as California’s premier cannabis operator.”

PharmaCielo Ltd.

PharmaCielo Ltd. (TSXV: PCLO) has entered into an implementation agreement to acquire all of the issued and outstanding shares and listed options of the global medical cannabis company Creso Pharma Ltd. for A$122 million. Under the agreement, PharmaCielo will pay A$0.63 per share, which is a premium of 50% over the closing trading price of the Creso Pharma shares on May 31, 2019. “PharmaCielo’s acquisition of Creso Pharma, harnessing the synergies between us, creates a combined company that is poised to become a global powerhouse in the medicinal cannabis industry,” said David Attard, CEO of PharmaCielo. “Upon closing of the transaction, the combined company will quadruple our global footprint with presence in more than a dozen countries spanning North and Latin America, Switzerland, Europe, the Middle East, Australia and New Zealand.”

Aleafia Health

Aleafia Health Inc. (TSX: ALEF) (OTC: ALEAF) (FRA: ARAH) reports that it is offering 35,000 convertible debenture units of the company, at a price of $1,000 per unit, for a total of $35 million. Leading the offering is Mackie Research Capital Corporation and BMO Capital Markets, which is acting on behalf of a syndicate of agents including Canaccord Genuity Corp. The proceeds of the offering will be used for working capital requirement and other general corporate purposes.

Medicine Man Technologies

Medicine Man Technologies, Inc. (OTCQX: MDCL) has entered into a securities purchase agreement for the sale of up to $14 million of the company’s common stock from an affiliate of the private equity firm Dye Capital & Company. The company will use the proceeds to fund growth initiatives. The company also announced a series of pending acquisitions, including MedPharm Holdings, Colorado’s first licensed cannabis research & phytopharmaceutical company; Medicine Man Denver; Los Sueños Farms, North America’s largest sustainable cannabis farm; and Mesa Organics, a cannabis products manufacturing company. “Dye Capital is the right partner for our Company with a unique set of skills and experience in merger and acquisition transactions, integration experience, and scaling operations. Our entire team is excited about teaming with Dye Capital,” said Medicine Man Technologies Co-Founder and CEO Andy Williams.

Debra BorchardtOctober 2, 2018

Canadian cannabis company Aleafia Health Inc. (ALEAF) has submitted an application to list its shares on the NASDAQ (NDAQ) exchange. The stock is currently trading in the OTC Markets Group in the U.S. and the Toronto Venture Exchange in Canada.

“Listing on the NASDAQ is another step as we continue to execute on our stated goal of attaining a global leadership position in the cannabis space,” said Aleafia Chairman Julian Fantino.

The company said it also intends to submit a Form 40-F, which is a requirement for Canadian companies to register securities it intends to offer on U.S. markets, to the Securities and Exchange Commission (SEC) later this week. The listing remains subject to NASDAQ and SEC approval.

Until that is approved, the shares will continue to trade on the OTCQB under the ticker symbol “ALEAF”. Aleafia’s common shares will also continue to trade on the TSX Venture Exchange under the ticker symbol “ALEF” post-NASDAQ up-listing.

Aleafia is hoping to join other Canadian cannabis companies that have found a home at the NASDAQ. Those include biotech company GW Pharmaceuticals (GWPH), Insys Therapeutics (INSY), Cronos Group (CRON) and Tilray (TLRY). High Times Holding Co. has also applied but hasn’t found the exchange to be as welcoming as some of these other cannabis-related companies.

“Management believes that listing on the NASDAQ will help to broaden our shareholder base, increase appeal to institutional investors, provide shareholders with better liquidity and, ultimately increase shareholder value, allowing Aleafia to rapidly accelerate our business strategy,” said Aleafia CEO Geoffrey Benic.

Aleafia listed the following points as some of the companies highlights:

160,000 sq. ft. Niagara greenhouse retrofitting on schedule and expected to be complete in late 2018
Fully funded annual growing capacity of 38,000 kg of cannabis flower to be reached in 2019
Signed supply MOU with CannTrust Holdings Inc. for up 15,000 kg of cannabis in 2019
Planning of Aleafia’s Port Perry expansion underway, with all production options on the table, including an innovative, ultra low-cost outdoor grow
Reached milestone of 50,000 medical cannabis patients
Secured first medical cannabis sale in company’s history, only days after securing Sales Licence from Health Canada
Added to Horizons Marijuana Life Sciences ETF, the largest cannabis ETF in the world

Body and Mind Reports Slumping Sales as New Dispensaries Come Online

Planet 13’s Financial Numbers Down Across the Board for 2022, Losses Jump 152%

In other news

Atai Life Sciences Losses Shrunk in 2022 Amid Restructuring Bid

GMR’s Women’s Summit Was A Rousing Success

The 2023 Winners of the GMR Women’s Leadership Awards

Aleafia health Archives - Green Market Report

Daily Hit: February 13, 2023

On the Site

In Other News

Aleafia Health Takes Huge Write Down On Emblem

Aleafia Reports Rising Revenues As It Trims Losses

Aleafia Health Posts Gain In Revenue, But Jump In Losses As Well

Aleafia Health Says Third Quarter Will Be Profitable

Global Moves From Akerna, Aleafia Health and MYM Neutraceuticals

The Daily Hit: June 27, 2019

On the Site

Green Growth Brands

Executive Spotlight: Dr. Jared Helfant, Co-Founder and President of Sparx Cannabis

In Other News

Surterra Wellness

Curaleaf

Aleafia Health

The Daily Hit: June 6, 2019

On the Site

Cresco Capital Partners

Italian court bans cannabis derivatives, in blow to popular sector

In Other News

Harborside

PharmaCielo Ltd.

Aleafia Health

Medicine Man Technologies

Aleafia Applies To List On The NASDAQ

Body and Mind Reports Slumping Sales as New Dispensaries Come Online

Planet 13's Financial Numbers Down Across the Board for 2022, Losses Jump 152%

Atai Life Sciences Losses Shrunk in 2022 Amid Restructuring Bid

On the Site

In Other News

On the Site

Green Growth Brands

Executive Spotlight: Dr. Jared Helfant, Co-Founder and President of Sparx Cannabis

In Other News

Surterra Wellness

Curaleaf

Aleafia Health

On the Site

Cresco Capital Partners

Italian court bans cannabis derivatives, in blow to popular sector

In Other News

Harborside

PharmaCielo Ltd.

Aleafia Health

Medicine Man Technologies

Choose Your News

Choose Your News