Aleafia Health Inc (OTCMKTS:ALEAF) shares launched higher on Friday on news that the company just announced, along with CannaPacific Pty Ltd., that the two companies have signed a non-binding term sheet in which, upon completion of the transaction, Aleafia will acquire a 10 percent equity stake in CannaPacific.
According to the release, “CannaPacific is a Licensed Australian Medical Cannabis company based in Newcastle and the Macleay Valley on the mid-north coast of NSW, Australia. As at the date of this Term Sheet, CannaPacific has been granted licences to cultivate, produce and research medical cannabis in Australia and has a 53,000 sq. ft. cannabis cultivation and plant research facility currently under construction.”
Aleafia Health Inc (OTCMKTS:ALEAF) promulgates itself as a vertically integrated cannabis company in Canada. The company provides medical consultation services to determine the suitability of medical cannabis in treating patients with chronic pain and other disabling illnesses through operating a medicinal cannabis clinic network under the Canabo Medical Clinic brand.
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It is also involved in the growing, possession, and sale of cannabis products.
Aleafia frames itself as a leading, vertically integrated medical cannabis company with a unique focus on delivering quality patient care from “seed” to “sale.” Aleafia is uniquely positioned with a singular focus on the medical cannabis market. The company operates the largest brick and mortar medicinal cannabis clinic network in Canada under the Canabo Medical Clinic brand, which is staffed by licensed, practicing physicians. Aleafia has obtained over 50,000 unique patients and maintains the largest medical cannabis patient data set in Canada. Aleafia’s state of the art production facilities will allow for the production of high-quality strains at low cost. Aleafia’s production will focus on securing the highest-quality medicinal product for its growing patient base.
Aleafia owns and operates a healthcare clinic that provides medical cannabis therapy to achieve optimum recovery and minimize illness and injury’s cumulative effects.
The company provides medical cannabis therapy, pain management, physiotherapy, chiropractor, osteopathy, registered massage therapy, laser therapy, orthotics, and custom braces and compression socks. It provides consulting and support services for managing cannabis-sensitive cases.
The company assists rehabilitation professionals, case managers, social workers, life care planners, psychologists, family physicians, physiotherapists, litigators, and third-party insurance companies. Aleafia Inc. is based in Concord, Canada.
In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($30.3M against $2.2M).
As we discussed earlier, ALEAF just announced, along with CannaPacific Pty Ltd., that the two companies have signed a non-binding term sheet in which, upon completion of the transaction, Aleafia will acquire a 10 per cent equity stake in CannaPacific.
This announcement has popped the stock higher, which certainly isn’t surprising. ALEAF shareholders are now sitting on about 22% in gains over the past week.
“This strategic investment in an emerging medical cannabis market marks Aleafia’s first step towards a broader global expansion,” said Aleafia Chairman Julian Fantino.
“We are extremely pleased to collaborate with CannaPacific, a company with the team in place to quickly capture market share in Australia,” said Aleafia CEO Geoffrey Benic. “This transaction, once completed, will place Aleafia at the epicenter of what we expect will be a major growth center in the global medical cannabis market.”
Over the past month, shares of the stock have suffered from clear selling pressure, dropping by roughly -11%.
“We are delighted to be partnering with Aleafia,” said CannaPacific CEO Joshua Dennis. “There are clear synergies between the two companies that will create long-term, sustainable value in the Australasian market as we capitalize together on changes in the local regulatory environment. This will allow medical cannabis to play a vital role in lowering the disease burden on patients.”
Aleafia Health Inc (OTCMKTS:ALEAF) managed to rope in revenues totaling $124K in overall sales during the company’s most recently reported quarterly financial data — a figure that represents a rate of top-line growth of -85.5%, as compared to year-ago data in comparable terms.
Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!
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