If there is one company that will stand out from the rest and could make a lot of waves in the industry in 2020 it’s ALEAFIA HEALTH (ALEF / TSX). The company and its CEO Geoffrey Benic have had a clear objective from their very beginning to be the global leader in cannabis health and wellness.
To do this, Aleafia Health decided to be the leaders in the outdoor space and low cost growth and to integrate everything into their health and wellness ecosystem. This is what differentiates Aleafia Health from their peers.
The company and its CEO Geoffrey Benic have had a clear objective from their very beginning to be the global leader in cannabis health and wellness.
Today, prospective patients can visit a physician and our medical cannabis clinics take propriety education courses through their FoliEdge Academy and purchase Emblem medical cannabis products through an integrated experience. Aleafia Health has more than 10,000 active, registered medical Patients. Their cannabis medical clinics and GrowWise Health Centers see approximately 3,400 need patience per month.
All this with margins very high compared to other LPs who are now experiencing significant price and margin compression.
Aleafia Health is among the lowest producers in the Canadian cannabis industry with an all-in cost of $0.10 per gram to harvest and an average revenue per gram to medical sales of $15.11 per gram equivalent sold.
What makes Aleafia Health one of the most profitable cannabis companies in the world today and in the coming years is its business plan and facilities.
Port Perry, ON
Aleafia Health has harvested 10,300 kilograms of dried flower for 2019 from their outdoor cannabis cultivation area but is now increasing their production for an additional 2.6 million sq. Km. ft. (60 acres) of cultivation area, for a total of 3.7 million sq. ft (86 acres) for 2020 which will bring their production to more than 129,500 kg / year with their new state-of-the-art indoor greenhouse located in Niagara, Ontario.
The Company’s Niagara Facility consists of a 160,000 sq. ft. modern, fully automated greenhouse with advanced growing equipment for a perpetual, year-round harvest. This installation as well as the expansion to Port Perry is completed and funded and the company is awaiting licenses already submitted to Health Canada.
The innovation center located in Paris, ON is the centerpiece of Aleafia Health’s plan.
The Paris facility handles all extraction, packaging, order fulfillment for medical, adult use and international sales. Likewise, with these two expansions, interior and exterior, Paris facility expansion is 100% complete and is entirely dedicated to the extraction, production, packaging, distribution of finished cannabis products.
Paris will feature an initial 115,000 kg dried flower equivalent (“DFE”) extraction capacity, a 2,775 per cent increase over the Company’s current 4,000 kg DFE extraction capacity. All this to transform their dried flower produced at low cost into high margin products.
Aleafia’s plan is to export their entire ecosystem to their platform in many jurisdictions internationally.
To do this, earlier in 2019, Aleafia Health concluded a joint venture (“Aleafia Health Germany”) with German pharmaceutical wholesaler Acnos Pharma GmbH to enter the German medical cannabis. This market represents a huge opportunity for Aleafia Health.
Also, the Company owns a 10 per cent stake in CannaPacific an Australian Licensed Producer. A few months ago the Company completed its first international product shipment, delivering medical cannabis oils for distribution by CannaPacific.
Aleafia Health intends to be very active in the cannabis 2.0 market and works with partners to be able to get the best in class expertise and technology.
They have a number of partnerships to be announcing in the near term for Cannabis 2.0. as their recent agreement with Kinstate, Inc. (“Kinstate”) to bring its award-winning, cannabis-infused sublingual strips brand and underlying sublingual strip technology to the Canadian medical and adult-use cannabis market.
The balance sheet of Aleafia Health is very strong. They have over $51 million in cash along with an additional $6 million in marketable securities for a total of $57 million in cash and marketable securities. They also have $83 million in working capital.
As we have said, our operating costs have declined by two-thirds over the course of 2019. During that time we’ve undertaken major capital projects; the Niagara Greenhouse, the Phase 2 expansion of the Paris facility and the Outdoor Grow facility, all of which are now substantially complete. We believe this puts us in an excellent position as we progress towards becoming cash flow positive.Benjamin Ferdinand, CFO of Aleafia Health
Aleafia Health is on the verge of gaining market recognition with its profitability, execution model and their focus on disciplined sustained growth.
With a market value of less than 200 million, Aleafia Health which trades on the TSX with the symbol ALEF is far from the value of its peers. The year 2020 should be the explosion of this high-level company.
This article is written and published by The Cannabis Stock
Disclaimer : The Cannabis Stock wants to promote the cannabis market with the best articles and news on the market. The Cannabis Stock does not recommend selling or buying any of the company mentioned and is not responsible for any losses that may result.Reusable Block
The Cannabis Stock and its employees may from time to time own shares of the companies named in the articles. All the facts reported by the cannabis stock are information that comes directly from the companies, from their website or on Sedar and are only published as information.