Debra Borchardt
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.
