Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
See RED and blue highlights to see how small Aleafia is--->>> Aleafia Health Reports Q4 2021 Financial Results with $11.5 Million Branded Cannabis Gross Revenue, representing a 103% Increase from 2020
• Transforming business towards a branded cannabis provider, with branded revenue representing 80% of total net revenue in 2021 compared to 33% in 2020
• 96% increase in branded cannabis net revenue to $28.7 million in 2021 from $14.6 million in 2020
• 396% increase in adult-use net revenue to $16.0 million in 2021 from $3.2 million in 2020
• 60% increase in branded cannabis net revenue to $8.3 million in Q4 2021 from $5.2 million in Q4 2020
• 33% increase in medical cannabis net revenue to $10.6 million in 2021 from $8.0 million in 2020
• Consolidating medical market share with 17% growth in scripts in 2021 relative to 23% overall market decline
• Average THC potency of 22% with up to 27% levels achieved in record-breaking outdoor harvest
• Projecting Adjusted EBITDA Profitability during the Second Half of 2022
TORONTO – February 14, 2022 – Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is pleased to report its financial results for the three and 12 months ended December 31, 2021. The Company’s 2021 unaudited, consolidated financial statements and management discussion and analysis for the fourth quarter and 12-month periods will be available in the Investors section of the Company’s website at aleafiahealth.com and will be filed on SEDAR and available at sedar.com.
“The core strategic objectives that will drive Aleafia Health to sustained profitability reflect a pivot to focus on branded cannabis revenue. Branded revenue is comprised of ‘sticky,’ recurring medical revenue at attractive gross margins and robust growth in adult-use cannabis revenue where Aleafia continues to aggressively take market share,” said Aleafia Health CEO Tricia Symmes. “We are focused on achieving Top 10 in total LP market share in 2022, driven by leadership in the value cannabis category. Aleafia’s five cannabis brands span the spectrum from premium and craft flower to the value category with Divvy, where we already enjoy significant leadership. The company’s market share rose from 30th in Q1 2021, when we launched our House of Brands, to 15th in Q4 2021, representing the third highest change in market share rankings out of 40 Canadian Licensed Producers (“LPs”).(1) Q4 retail sales increased 37% relative to Q3. Our Divvy value brand is consistently among the top searched brands at the Ontario Cannabis Store website.”
“In 2021, the total net revenue of $36.1 million represents a highly diversified sales mix. Driven by robust growth in adult-use and medical sales, these two sales channels represented 80% of total net revenue, a complete turnaround from 2020, where bulk-wholesale product represented 67% of total net revenue,” Symmes added. “This is just the beginning, and we are very excited about the future. A record-breaking outdoor harvest that produced average THC potency of 22% allows us to direct this flower into the adult-use market, delivering significantly higher net margin per gram than the bulk wholesale channel. With our highly competitive THC levels, the quality of the brand is the company’s competitive advantage in the value category, and by focusing on the top performing high margin products through portfolio optimization, we are poised to achieve breakeven adjusted EBITDA profitability in the second half of 2022.”
“Aleafia Health’s revenue is driven by three strong business lines: its CPG branded adult-use portfolio, where we aim to enjoy a Top 10 overall market share position, which currently generates $24 million annualized run-rate net revenue, with significant momentum in the first 6 weeks of 2022; leadership in medical cannabis with its highly recurring $10 million annualized run-rate net revenue, and a 17% increase year over year in script counts; and international sales, where we are well positioned in three countries, Germany, the UK and Australia, and have developed partnerships with key established European supply distributors.
Our Sunday Market House of Brands achieved 396% growth year over year and is anchored around our hugely successful everyday Divvy brand, we have moved strongly ahead into categories that consumers want and are providing the innovative products and a value proposition that they demand.”
OPERATIONAL HIGHLIGHTS
• Net revenue was $36.1 million for the 12 months ended December 31, 2021 (“2021”), compared to $44.5 million in the 12 months ending December 31, 2020 (“2020”). For the three months ended December 31, 2021 (“Q4 2021”), net revenue was $8.8 million, compared with $15.2 million in Q4 2020. The decline in net revenue was based on shifting from lower margin, higher volume bulk wholesale commodity cannabis revenue to higher margin, higher potency and innovative adult-use products, offering a unique value proposition. The Company’s branded cannabis revenue includes its “sticky” medical sales and market share consolidating branded adult-use cannabis products along with its burgeoning international sales.
• Branded cannabis net revenue increased 96% to $28.7 million in 2021 compared to $14.6 million in 2020, and increased 60% to $8.3 million in Q4 2021 compared to $5.2 million in Q4 2020, largely attributable to the launch of the Sunday Market House of Brands, which enjoyed 396% growth in 2021 compared to 2020, anchored around Divvy, the everyday brand focused on potency and an exceptional value proposition. Aleafia delivered the top 3 out of 40 Canadian LPs in market share rank increase from Q1 2021 (#30) to Q4 2021 (#15).(1)
• Adult-use net revenue increased 396% to $16.0 million in 2021 compared to $3.2 million in 2020, and increased 326% to $6.0 million in Q4 2021 compared to $1.4 million in Q4 2020. Sales velocity continues to accelerate driving market share capture with 37% retail sales pull through in Q4 2021 relative to Q3 2021.(2)
• Medical cannabis net revenue increased 33% to $10.6 million in 2021 compared to $8.0 million in 2020, driven by strong ordering patterns from its flagship Emblem cannabis brand. Script count increased 17% year over year, to 37,779 in 2021 compared to 32,191 in 2020. The patient base grew 13% to 19,700 in 2021 from 17,400 in 2020. In 2021, the Company onboarded four unionized employers through its exclusive partnership with Unifor, Canada’s largest private sector union, with more than 515,000 members and retirees across the country. The highly scalable new patient onboarding platform is well-positioned to accelerate patient uptake. The Company will continue pursuing its recurring revenue base in which patients receive reimbursement for medical cannabis.
• Bulk wholesale net revenue declined 75% to $7.4 million in 2021 compared to $29.9 million in 2020, which was offset in part by strong growth in branded cannabis revenue. This was driven by the Company’s redirection of its cultivation flower from the bulk wholesale sales channel towards its higher net revenue per gram branded cannabis products.
• The Q4 2021 outdoor harvest delivered over 11,600kg of high potency saleable flower with THC levels averaging 22%. The Company plans to primarily utilize this product in the first half of 2022 in its adult-use branded cannabis products.
• Total gross profit fair value adjustments and inventory provision was 31% in Q4 2021, compared to 59% in Q4 2020, primarily due to the Company’s pivot away from bulk-wholesale towards branded cannabis products that deliver higher overall net margin per gram.
KEY DEVELOPMENTS
In 2021, the Company transformed its business to become a branded cannabis provider. It has produced high potency flower at its Port Perry outdoor growth facility, allowing it to direct that product to higher margin, adult-use products. It has engaged?with the consumer and attracted a top executive sales and marketing team, with an internal sales force, that understands the CPG marketplace, what consumers want and is focused on the need to drive value to secure loyal customers and drive and maintain market share. Higher THC levels as well as the lower cost of input materials has allowed the Company to significantly increase its market share. Other developments include:
• Branded Cannabis Represented 80% of 2021 Total Net Revenue: The Company launched 37 new SKUs since Q4 2020 and built five cannabis brands spanning value to premium, craft. Divvy, an everyday consumer value brand, is consistently a top searched brand on OCS.ca. Twelve new product formats were launched in 2021 including: Craft Dried Flower, Milled Flower, 1g Distillate Vapes, Live Resin Vapes, Live Resin Diamond Sauce, Salted Caramel Pretzel Bites, Cluster Pucks, HotSauce, Omega CBD Soft Gels, Bath Bombs, Freshly Minted Roll-Ons and Topical Creams.
• Significant Increase in Adult-Use Market Share: The Company is aggressively capturing market share. It achieved a top 3 market share rank increase among 40 Canadian LPs in the Q1 2021 (#30) to Q4 2021 (#15) period, based on HiFyre data. Its 37% increase in retail sales pull through from Q3 2021 to Q4 2021 placed it among the top 10 Canadian LPs. The Company’s market share increased from 0.3% in Q1 2021 to 2.0% in Q4 2021. Over this period, the Company delivered strong retail sales pull through in each of the three major categories, with flower increasing approximately 1,400%, pre-roll increasing approximately 1,000% and vape increasing approximately 200%. The Company enjoys 94% penetration at the retail store level in Ontario and 84% in Alberta, and has supply agreements with Saskatchewan and British Columbia.
• Medical Ecosystem Expanded: The Company onboarded four unionized employers in 2021 through its exclusive Unifor partnership. These employers represent less than 5% of the Unifor member base and the Company continues to focus on additional onboardings. Despite restrictions on interacting directly with potential patients due to Covid-19, the Company experienced modest growth in both Unifor-based patients and sales from Q3 2021 to Q4 2021. The Company saw scripts increase 17% year over year, driven primarily by continued onboarding of third-party clinics which represented a largely reimbursed patient base comprising approximately 55% of total medical sales in Q4 2021. The Company launched tailored programs targeted at the Veteran medical demographic and entered the Quebec market.
• International: The Company successfully saw its products exported into three countries Germany, UK and Australia in 2021. The Company established partnerships with key European suppliers and wholesalers to facilitate a ramp-up in pull-through into the European market in 2022.
• Cultivation: The Company owns three licensed cannabis production facilities and operates a strategically located distribution centre all in the province of Ontario, including in Port Perry the first large-scale, outdoor cultivation facility in Canadian history. Port Perry delivered over 11,500 kg of flower with average THC potency of 22% in 2021. THC levels ranged from a record-breaking 21-to 27% and the terpene profile was outstanding, ranging from 2.7% to 5.7%.
• Cost Rationalizations: The Company methodically reviewed its cost structure and optimized its talent and resources towards the sales channels which delivered the highest net realizable margin per gram of flower sold – its branded cannabis products. The Company initiated headcount reductions in Q4 2021, representing approximately 10% of the workforce and approximately $1.9 million in annualized savings. The Company has undergone a SKU optimization to align its portfolio on best-selling product formats with the strongest margin profile. The Company is in the process of integrating its virtual, physical and third-party clinic platform which is expected to generate additional operating expense savings. The Company 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.
• Adjusted EBITDA Profitability: The Company evaluated all facets of the organization and realigned executive management to focus on achieving profitability. Significant non-recurring one-time costs were incurred in 2021 as the Company developed, built, and launched its Sunday Market House of Brands. Most of these costs are not expected to be recurring. Over the last four quarters, the Company saw significant progress and is trending towards achieving breakeven Adjusted EBITDA profitability in the second half of 2022.
• Repositioning the Balance Sheet. The Company completed two senior secured debt financings in Q4 2021, including a $10 million senior secured term credit facility in August 2021 and a new $19 million credit facility in December 2021. The new credit facility consists of a $12 million term loan and a revolving receivables facility of up to $7 million. The revolving receivables facility remains undrawn, providing the Company with liquidity to fund working capital investments required to continue rapidly scaling its adult-use sales. As reflected in the Company’s announcement on February 1, 2022, the Company is actively engaging with holders of its listed unsecured convertible debentures maturing on June 27, 2022 (TSX: AH.DB) with a view to effecting changes in key terms that are equitable to both the holders and the Company, and provide a sustainable foundation for the Company’s continued growth.
Note that the Company announced on February 8, 2022 that it changed its year-end to March 31. As a result, in this transition year, annual audited financial statements for the 15 months ended March 31, 2022 will be issued prior to June 29, 2022.
Page Break
NET INCOME & ADJUSTED EBITDA
To see all of the numbers look here:
https://aleafiahealth.com/news-releases/aleafia-health-reports-q4-2021-financial-results-with-11-5-million-branded-cannabis-gross-revenue-representing-a-103-increase-from-2020/
Aleafia Health Reports Q4 2021 Financial Results with $11.5 Million Branded Cannabis Gross Revenue, representing a 103% Increase from 2020
https://www.globenewswire.com/news-release/2022/02/15/2384805/0/en/Aleafia-Health-Reports-Q4-2021-Financial-Results-with-11-5-Million-Branded-Cannabis-Gross-Revenue-representing-a-103-Increase-from-2020.html
Notable earnings before Tuesday's open
10:11 AM | Aleafia Health Inc. (ALEAF) | By: Pranav Ghumatkar, SA News Editor
ABG,ACRE,OTCQX:ALEAF,ALLE,ALLT,ARCH,ASC,BKI,BWA,CCRD,CEVA,ECL,OTCPK:ENGIY,ESEA,FIS,OTCQB:FNMA,GILT,OTCPK:GLCNF,HSIC,HUN,IPGP,IQV,KRNT,LDOS,LGIH,MAR,NXRT,PTN,QSR,RPRX,SABR,SAFE,TRP,TRTN,USAC,OTCQX:VYGVF,WCC,YNDX,ZTS
I thought this was going to be a winning cannabis company with a low cost of goods.
Not a winner.
In the videos I saw of Benic, he sure sounded upbeat and knowledgeable. Unfortunately, the stock has been going straight down for a year or so. I sold all my shares five weeks ago. That means ALEAF will probably be rocketing soon!
Aleafia Health Inc (OTCMKTS: ALEAF) Obtains a $19 Million Credit Facility and Extension of Existing Credit Facility
Aleafia Health to Announce Fourth Quarter 2021 Results
TORONTO – February 8, 2022 – Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) will announce results from its three and 12-month periods ending December 31, 2021 on February 14, 2022. The Company will also host its earnings conference call on February 15 at 9:30 a.m. EST. The call will be hosted by CEO Tricia Symmes and CFO Matt Sale.
CONFERENCE CALL & WEBCAST
Date: February 15, 2022
Time: 9:30 a.m. ET
USA/Canada Toll-Free Participant Call-in: (866) 679-9046; Passcode: 6187986
International Toll-Free Participant Call-in: (409) 217-8323; Passcode: 6187986
WEBCAST LINK
This conference call will be webcast live over the internet and can be accessed through the link provided. Audio of the call will be available to participants through both the conference call line and webcast; however, the presentation may only be viewed via the webcast. Participants who miss the live call can view a replay at any time via the link provided.
Aleafia Health recently changed its fiscal year end from December 31, 2021 to March 31, 2022, and expects to report 2021 fiscal year results by June 29, 2022.
For Investor & Media Relations:
Matt Sale, CFO
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health, a vertically integrated and federally licensed Canadian cannabis company, owns three licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history, and operates a strategically located distribution centre, all in the province of Ontario. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the adult-use and medical markets and is pursuing opportunities in select international jurisdictions. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
It's about time --->>> Aleafia Health Appoints Tricia Symmes as CEO to Replace Geoffrey Benic
TORONTO –February 7, 2022 – The Board of Directors of Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) today announced that CEO Geoffrey Benic will leave the Company, effective February 7, 2022. To succeed Benic, the Board named Tricia Symmes, previously the Company’s Chief Commercial Officer (CCO), as the Company’s new CEO.
https://aleafiahealth.com/news-releases/aleafia-health-appoints-tricia-symmes-as-ceo-to-replace-geoffrey-benic/
“Geoff joined Aleafia in June 2018 at a turning point for the Company,” said Mark J. Sandler, board chair. “He brought to Aleafia Health a strong entrepreneurial background and helped the company develop its diversified indoor, greenhouse and outdoor production capabilities and its class-leading processing facilities. We wish Geoff well as he moves on to pursue other business interests.”
Symmes became Aleafia Health’s CCO in August 2020 and led the move into the branded recreation market, where the company recently entered the top 10 in the key market categories. She has extensive executive C-suite experience in the pharmaceutical, biotech, consumer-packaged, and cannabis industries in both North American and international markets. Before joining Aleafia, Symmes served as Chief Operating Officer and General Manager of multinational companies, including Alcon Canada and Novartis Pharmaceuticals, as well as General Manager at CX Industries, a wholly owned subsidiary of Entourage Health Corp. She is one of the first female CEOs in the Canadian cannabis industry.
“Tricia is exactly the right person to rise to the challenges of today’s market and lead the next phase of the company’s growth. Leveraging her 20 years of experience as a senior executive in salient industries, Aleafia has seen exponential growth in adult-use cannabis net revenue in only 6 months, while the company’s medical business has continued to move from strength-to-strength, including through the unparalleled partnership with Unifor.” said Sandler. “Her elevation to CEO is part of the natural evolution of the company and is based on her demonstrated achievements. We look forward to her continuing to improve the company’s operational efficiency, and to profitably building market share and brand recognition nationally and globally.”
Symmes holds an MBA from Charles Sturt University (Australia), and an Honours BSc in Kinesiology (Western University).
For Investor and Media Relations, please contact:
Matt Sale, Chief Financial Officer
1-833-TSX-ALEF (879-2533)
IR@AleafiaHealth.com
LEARN MORE:www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health, a vertically integrated and federally licensed Canadian cannabis company, owns three licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history, and operates a strategically located distribution centre, all in the province of Ontario. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the adult-use and medical markets and is pursuing opportunities in select international jurisdictions. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
Aleafia Health Provides Further Update on its Convertible Debt
Entered into Forbearance Agreement with Holders representing 58% of total Debentures
Negotiating a potential transaction to amend the Convertible Debt terms for all debenture holders
TORONTO – February 1, 2022 – Aleafia Health Inc. (TSX: AH, AH.DB, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is providing a corporate update regarding its outstanding listed unsecured convertible debentures (TSX: AH.DB), issued on June 27, 2019 and maturing on June 27, 2022 (the “Convertible Debt”).
Further to the Company’s announcement on January 4, 2022, Aleafia Health is advancing towards achieving a beneficial outcome for all its stakeholders.
The Company has entered into a Forbearance Agreement (the “Forbearance Agreement”) with Debenture holders representing 58% of the Debentures’ aggregate principal amount outstanding (the “Holders”). An ad hoc Steering Committee comprised of certain Debentureholders, and represented by Bennett Jones, has been established that will help facilitate ongoing negotiations surrounding the Convertible Debt. The Forbearance Agreement’s initial term extends to February 28, 2022, and the agreement automatically renews for 14-day periods thereafter unless notice to the contrary is provided (the “Term”).
Under the Forbearance Agreement, the Holders, among other considerations, forebear in enforcing their rights or remedies against the Company under the Indenture and otherwise at law with respect to the non-payment of interest until the expiry of the Term. The Company, in turn, has agreed to certain customary and standard covenants regarding carrying on business in the ordinary course during the Term.
Under the Forbearance Agreement, the Holders and the Company have agreed to work expeditiously and in good faith to negotiate a potential transaction to amend the terms associated with the Convertible Debt. There can be no assurance that the negotiations will result in a transaction.
For Investor & Media Relations:
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
Good news for all companies involved. I prefer to see them cooperate.
Aleafia (in blue below) is using new means to distribute product--->>> FIRE & FLOWER LAUNCHES E-COMMERCE DISPENSARIES FOR CANADIAN LICENSED PRODUCERS' BRANDS
JANUARY, 27, 2022
https://investors.fireandflower.com/news/news-details/2022/Fire--Flower-Launches-E-Commerce-Dispensaries-for-Canadian-Licensed-Producers-Brands/default.aspx
New e-commerce offering from Hifyre and Fire & Flower will equip brands with a direct-to-consumer sales platform enabled by delivery and a 100+ store retail network
TORONTO, Jan. 27, 2022 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower'', or the "Company") (TSX: FAF) (OTCQX: FFLWF), a leading, technology-powered, cannabis retailer, today announced the expansion of the Company's e-commerce offering with the launch of online branded dispensaries that will enable direct-to-consumer sales using drop shipping for leading licensed producers ("LPs").
The expanded e-commerce capabilities continues the buildout of Fire & Flower's proprietary technology stack that is focused on delivering a seamless digital consumer experience including in-store fulfillment and delivery. The new virtual retail platforms, powered by the Company's proprietary data and analytics platform, Hifyre, allow for cannabis consumers to shop LP-branded online marketplaces for direct-to-consumer sales.
Consumers can shop for their favorite brands' cannabis products and have those orders completed through in-store fulfillment at one of Fire & Flower's 100+ retail locations or via delivery (where permitted) through its recently acquired delivery subsidiary, Pineapple Express Delivery.
Initial brands available for purchase through Fire & Flower's platforms include Auxly, Aleafia, Cronos Group, FIGR and Wagners. The e-commerce marketplaces will also generate digital advertising revenue through the Hifyre Reach platform which connects brands to intending consumers, and provides a path to measure purchasing behavior both in-store and online.
"Retail is continuously evolving and we found that a growing segment of our customer base is looking for a seamless digital solution that allows them to connect and shop directly from their favorite brands. We are uniquely positioned to meet that demand by providing a streamlined retail experience to customers across North America through our scalable, digital solution, powered by our Hifyre technology platform. Through the creation of branded dispensaries we are delivering additional value to LPs by enabling greater customer acquisition through a top-of-funnel virtual platform that can also fulfill those direct orders either in person or via delivery," said Trevor Fencott, Chief Executive Officer of Fire & Flower.
"Not only does the creation of these online platforms support the expansion of our Spark Perks membership program and empower our entire technology platform with increasing sources of consumer buying preferences, it creates an opportunity to generate new digital advertising revenue streams through our Hifyre Reach platform," concluded Fencott.
"We're excited to engage directly with consumers through Fire & Flower's advanced consumer technology," said Andrew MacMillan, SVP Commercial, Auxly. "To successfully compete in today's competitive cannabis market, it is essential to understand purchase habits and preferences. Through our newly branded e-commerce dispensaries, not only can we track consumer activity right through to purchase and conversion, but most importantly, we are also delivering an enhanced experience of our brands. This direct-to-consumer online model will drive new opportunities to more effectively serve our expanding customer base and support our sales growth."
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with over 100 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the Hifyre™ digital retail and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Hotbox brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of Alberta, Saskatchewan, Manitoba, British Columbia and Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit www.fireandflower.com.
About Hifyre
The Hifyre Digital Retail and Analytics Platform is a proprietary ecosystem of products that includes the Spark Perks member program, Hifyre ONE retail software platform, Hifyre IQ cannabis data and analytics platform, and Hifyre Reach digital advertising network.
The Hifyre platform also supports Fire & Flower's advanced operations and provides a competitive advantage in providing a tailored digital experience and understanding consumer behaviours in the evolving cannabis market.
To learn more about Hifyre, visit www.hifyre.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to the Fire & Flower. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements, including market conditions and the business of the Company. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower, which may cause Fire & Flower's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include: regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's annual information form dated April 30, 2021 and the heading "Risks and Uncertainties" in the management discussion and analysis for the quarter ended October 30, 2021 filed on its issuer profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Fire & Flower Holdings Corp.
If they can get a deal with their lenders I think this will squeeze
I am not able to find the details of the benefits deal other than I saw the new benefit brochure that covers annabis for certain conditions and the category is expanding as research comes out.
They also had +31% Q4 over Q3 according to Matt Latimer and Hyfyre data.
I hope the lenders see the potential here. They are on the verge of decent income from the auto workers union UNIFOR paying them premium for their medicines on benefits package. They have been bad at letting folks know about that tho
Almost dead --->>>Aleafia Health Skips Interest Payment As It Looks To Negotiate With Holders Of $37.4 Million In Outstanding Debt
January 4, 2022 8:47 AM
By: Jay Lutz
In a development that is perhaps surprising to absolutely no one, Aleafia Health (TSX: AH) announced this morning it is currently in negotiations with holders of its convertible debt. The debt comes due later this year, on June 27.
Originally issued in June 2019, the debt at issuance raised proceeds of $40.3 million from the company. Of that figure, just $2.9 million has been repaid, with a total outstanding principal amount now pegged at approximately $37.4 million as of September 30.
The firm however did secure a total of $19 million via a term loan and receivables facility just last week. With current cash on hand of just $4.7 million and a further $6.7 million in marketable securities and $8.2 million in trade receivables as of September 30, the firm has little chances of repaying the debt. And with a conversion price of $1.55 per share, there is little hope for the firm to see any further debt settled via equity conversion under the current terms.
In connection with these negotiations being underway, the company has not made an interest payment that was required to be made on December 31. This, however, is not classified as a default until thirty days after the payment is due.
The firm is currently looking to “achieve an outcome that is beneficial to all the Company’s stakeholders.” Notably, the debt is unsecured against the firms assets.
Aleafia Health last traded at $0.135 on the TSX.
It is just part of the cycle. Tax loss selling is over. This is the only LP I own. I have everything else in the US names for the pop on legalization. The Unifor contract keeps me in this one it will fly when all those achey auto workers start realizing they can get weed through their benefits.
That is unfortunate. I had high hopes for this with the union deal starting to come to fruition. Hopefully if is jyst a hiccup. Thank you very much for sharing. It sucks not being able to advertise.
Is 5¢ next?--->>>Aleafia Health Announces Closing of a New $19 Million Credit Facility and Extension of Existing Credit Facility
• Credit Facility provides the Company with liquidity to fund operations and organic growth initiatives --->>> What a shame. This isn't money for growth. It's money to keep the lights on. - FUNMAN
• Two-year term provides additional financial flexibility
TORONTO – December 29, 2021 – Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) (“Aleafia Health” or the “Company”) is pleased to announce the closing of a credit facility of up to $19 million (the “Credit Facility”).
“This financing improves our liquidity and capital structure as the Company’s senior secured debt obligations will now mature in December 2023 rather than in August 2022,” said Aleafia Health CEO Geoffrey Benic. “The transaction allows us to continue the growth of our core adult-use and medical cannabis sales channels, as we again expect to realize sequential growth in both channels over the previous quarter.”
The Credit Facility is financed by the Garrington Group of Companies, a Toronto-based private lender providing working capital financing to the underserved, small to mid-sized middle market sector across North America, providing credit facilities that generally range from $1 million to over $30 million. It consists of a revolving receivables facility of up to $7 million and a term loan of $12 million. The maturity date is December 2023. The term loan was fully drawn by the Company upon closing. The revolving receivables facility is expected to be drawn in January 2022 and further thereafter as receivables grow with the Company’s revenue. The interest rate is in-line with the Company’s existing credit facility and is payable monthly. The Credit Facility is secured primarily by way of first lien mortgages on the Company’s Paris, Ontario and Grimsby, Ontario production facilities, and includes customary financial and restrictive covenants. The net proceeds from the Credit Facility will be used to fund working capital, to repay $5 million in principal on the existing senior secured credit facility, announced on August 23, 2021 (the “August Credit Facility”), along with accrued interest and fees, and for general corporate purposes.
The term of the August Credit Facility has been extended from August 2022 to December 2023. In connection with that facility, a first lien mortgage will be granted on the Company’s Port Perry, Ontario outdoor cultivation property.
For Investor & Media Relations:
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada. The Company has developed an international footprint, with subsidiaries or investments in German and Australian medical cannabis companies and has products available in both markets.
The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners who have seen over 75,000 patients to date.
Aleafia Health owns three licensed cannabis production facilities and operates a strategically located distribution centre all in the province of Ontario, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the medical and adult-use markets, and in select international jurisdictions.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com.
Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
It is worth the wait.
How many months/years/decades has it been since this last occurred?? :)
Auto workers can not get those on their benefit plan. Aleafia has an edge. Kinslips are excellent. I have family members who use them and get great results
Competition to Kin-Slips--->>> Launch of Tilray’s Fast-Acting Oral Strips Highlights Commitment to Medical Cannabis Innovation and Patient Care
December 2, 2021 at 7:30 AM EST
https://ir.tilray.com/news-releases/news-release-details/launch-tilrays-fast-acting-oral-strips-highlights-commitment
Aphria Branded Medical Cannabis Oral Strips Powered by QuickStrip™ Innovation Now Available to Patients Throughout Canada
NEW YORK and LEAMINGTON, Ontario, Dec. 02, 2021 (GLOBE NEWSWIRE) -- Tilray, Inc. (“Tilray”) (NASDAQ | TSX: TLRY), a global pioneer in cannabis research, cultivation, production, and distribution, today announced that its medical subsidiary, Aphria, has launched medical cannabis oral strips in THC and CBD-rich varieties. Powered by QuickStrip’s™ proprietary technology, each Aphria medical strip contains a thin, edible film that contains rapidly dissolving, micronized cannabinoids that absorb directly into the bloodstream, providing patients with a fast-acting, convenient, and precise dosing experience for relief from a range of conditions.
Irwin D. Simon, Tilray’s Chairman and Chief Executive Officer, said, “Tilray’s medical brands, Aphria, Symbios, and Tilray, are relentlessly committed to investing in patient wellness through a portfolio of new innovative product offerings, GMP-certified cultivation, and the earned trust of the medical community. The launch of the Aphria-branded medical strips is a compelling proof point in this regard, and, given the growing expansion of medical cannabis across the globe, we believe we are exceptionally well-positioned in this high-growth, high-margin market moving forward. We look forward to extending our leadership in medical cannabis and to delivering value for patients and shareholders alike.”
Blair MacNeil, President at Tilray Canada, added, “At Aphria Medical, our goal is to be the trusted partner for patients by providing them with high-quality, precise, and efficacious medical cannabis treatment. Delivering on this mission means meeting patients ‘where they are,’ including those who are unable or reluctant to swallow medication or do not prefer the taste of cannabis oil. To address this need, Aphria has pioneered a superior, non-combustible, discreet, and easy-to-use method of consumption that utilizes micronized cannabinoids for rapid absorption and relief from a range of conditions.”
The strips, which are now available throughout Canada, are available in three different cannabis ratios: THC 10, CBD 20:1, and THC:CBD 10:10 (coming soon). Each pack of Aphria oral strips comes with 30 individually wrapped strips for precise, single-dose delivery.
About Aphria Medical
Aphria Medical started in 2014 in Leamington, Ontario, as one of the first companies to provide access to legal medical cannabis. Since then, the Aphria brand has grown to be one of the top medical cannabis providers globally, with operations in Canada and international markets. Aphria remains committed to supplying its growing patient base with safe, affordable, consistent, and effective medical cannabis products.
For more information, visit: www.aphria.ca
About Tilray
Tilray, Inc. (Nasdaq: TLRY; TSX: TLRY) is a leading global cannabis-lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is changing people's lives for the better – one person at a time – by inspiring and empowering the worldwide community to live their very best life by providing them with products that meet the needs of their mind, body, and soul and invoke a sense of wellbeing. Tilray’s mission is to be the trusted partner for its patients and consumers by providing them with a cultivated experience and health and wellbeing through high-quality, differentiated brands and innovative products. A pioneer in cannabis research, cultivation, and distribution, Tilray’s unprecedented production platform supports over 20 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and alcoholic beverages.
For more information about Tilray medical cannabis products, visit: www.Tilray.ca
For more information about Tilray, visit www.Tilray.com
Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses or current expectations concerning, among other things: the Company’s ability to become the world's leading cannabis-focused consumer branded company with our target of $4 billion of revenue by 2024; the Company’s position and plans to be the #1 Canadian LP in total sales on a consolidated basis; management’s projected growth in market share and revenue in the EU cannabis market and its Sweetwater and Manitoba Harvest businesses; and expectations regarding the Company’s achievement of synergy targets. Many factors could cause actual results, performance or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities laws.
For media inquiries, please contact:
Jaydon Case
news@tilray.com
For investor inquiries please contact:
Raphael Gross
203-682-8253
Raphael.Gross@icrinc.com
JMO—An R/S is in the future here
ALEAF—My biggest bag of 2021–GLTA!
If the US was not so close to go time I would add here. So many opportunities so little cash :)
We are officially in the ….. zone.
I think this might of made a possible double bottom previous low back showing .199 back in March 2020.
The canadian landscape has been extremely challenging and these guys have been creative and nimble in their navigation. They have done what they said they were going to do and I really think the union deal is going to be very helpful. The fact they have so much product on the government sites is a big plus. There is no legal company I know of in canada with as much going for it as these guys do. They are lining up their supply with the demand. I am not happy with the loss but if it clears the balance sheet for growth it is just another growing pain. I would rather own this than canopy lol!
Thank heavens for now that's all it is.
How are they not going to do an R/S?
I am left to hope for a big Q4 once the harvest is processed.
Is 331,007,629 O/S a lot for a company like this?
Aleafia Health Reports Q3 2021 Financial Results with 123% Increase in Cannabis Net Revenue
https://financialpost.com/globe-newswire/aleafia-health-reports-q3-2021-financial-results-with-123-increase-in-cannabis-net-revenue
Interesting. Just listened. Thanks.
Did you happen to listen to the post I make on Trish Lackey- Director of Marketing at Sunday market . It's a good listen..
https://www.reddit.com/r/aleafia/comments/qqc783/how_to_build_a_cannabis_brand_in_a_highly/?utm_medium=android_app&utm_source=share
I feel as if I am at sea helplessly watching a storm coming in, wondering if anyone at the helm knows what they are doing.
Hey all. It's been a while. Are we ready for what's to come.
The biggest outdoor harvest yet should be coming in and drying.
With no other growth plans, they have to show expanding margins and less reliance on wholesale.
That means increasing their branded product sales.
Otherwise they are toast and the money I invested is going up in smoke.
Many people, including myself, had high expectations for this company. It's not over yet, but it is indeed "show me" time.
Agreed. Show me.
Rest hope we get some positive news. I’d this doesn’t happen this stock might be done
Aleafia Health to Announce 2021 Third Quarter Results
Nov. 03, 2021 11:00 AM ET
Aleafia Health Inc. (ALEAF)
https://seekingalpha.com/pr/18542906-aleafia-health-to-announce-2021-third-quarter-results?fbclid=IwAR2f_NvJBVBprNeVfbmT1dfVbX--nVw_0WxE_cCWXFok9U7MFvBQrjYQQrk
TORONTO, Nov. 03, 2021 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (ALEAF) (“Aleafia Health” or the “Company”) will announce its 2021 third quarter results on November 11, 2021 prior to market open. The Company will also host its earnings conference call the same day at 9:30 a.m. ET. The call will be hosted by CEO Geoffrey Benic and CFO Matt Sale.
CONFERENCE CALL & WEBCAST
Date: November 11, 2021
Time: 9:30 a.m. ET
USA/Canada Toll-Free Participant Call-in: (866) 679-9046; Passcode: 5588397
International Toll-Free Participant Call-in: (409) 217-8323; Passcode: 5588397
WEBCAST LINK
This conference call will be webcast live over the internet and can be accessed through the link provided. Audio of the call will be available to participants through both the conference call line and webcast; however, the presentation may only be viewed via the webcast. Participants who miss the live call can view a replay at any time via the link provided.
For Investor & Media Relations:
Nicholas Bergamini, VP Investor Relations
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and with sales and operations in Australia and Germany. The Company operates medical clinics, education centres and production facilities for the production and sale of cannabis.
Aleafia Health owns four significant licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules, edibles, sublingual strips, and vapes. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and operates internationally in three continents.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
Cantech Letter
Search Search
All
Software
Cannabis
Fintech
Life Sciences
Security
Cleantech
Analysts
By Geordie Carragher September 30, 2021 Filed under: All posts, Analysts, Cannabis Stock: ah
Aleafia Health’s market share to grow, Research Capital says
Research Capital Corporation analyst Venkata Velagapudi is all about Aleafia Health (Aleafia Health Stock Quote, Chart, News, Analysts, Financials TSX:AH), initiating coverage on the company with a “Buy” rating and target price of $0.75/share to imply a projected return of 111 per cent in an update to clients on September 20.
Founded in 2007 and headquartered in Concord, Ont., Aleafia Health is an integrated cannabis health and wellness services company with a diverse portfolio of products, including dried flower and pre-rolls, oil drops and capsules, oral sprays and cannabis-infused sublingual strips. The company operates a network of 25 Canabo medical marijuana clinics and it sells products under multiple labels.
“We believe that Aleafia’s revenue growth will be mainly driven by its adult-use cannabis segment, which has a large addressable market for LPs in Canada,” Velagapudi said of the company’s future projections. “We estimate the addressable market for LPs to reach $5.1 billion by 2025.”
Velagapudi also believes the company is set to increase its Canadian market share to two per cent from its current 0.6 per cent hold, with Velagapudi noting that the estimates area driven by Aleafia’s recent launch of value brands, the ability to manufacture cannabis derivatives to create value through its low cost structure, long-term expansion of its distribution network and an expectation that the company will allocate a higher quantity of raw material to its adult-use cannabis segment instead of providing cultivation and extraction services to other licensed producers.
Since achieving its first cannabis revenue in 2018, Aleafia has been busy across the board, investing in Australian operator CannaPacific and gaining an export license in Australia in July 2019, shortly after merging with Emblem, which is one of the labels Aleafia sells.
From there, the company made inroads into the German market through a joint venture with Acnos Pharma in May 2019, completing its cannabis export in June 2021. Aleafia, through the Emblem brand, completed an EU-GMP application in May 2020, and also has made strides in the Israeli market through a letter of intent with Equinox in December 2020.
Most recently, the company launched two premium cannabis brands, Nith and Grand, in August.
Meanwhile, Aleafia has also entered into a ten-year agreement with Unifor, Canada’s largest private sector union, to provide medical cannabis insurance coverage through collective bargaining agreements, potentially representing a $315 million opportunity.
The company’s most recent quarterly financial report was headlined by $9.6 million in cannabis net revenue for sequential growth of 53 per cent, which the company attributed to increases in the sale of cannabis across the adult-use, medical and bulk wholesale sales channels, with each sales channel providing near equal contributions ($3.3 million in net medical cannabis revenue, $3.2 million in net adult-use cannabis, and $3.1 million in net bulk wholesale revenue received from sales to cannabis licensed producers).
“This quarter clearly demonstrates the success of our expanded product portfolio, with strong sequential growth across all sales channels and a shift towards a more balanced mix with sizable contributions from both the medical and adult-use cannabis markets. Credit goes to our management team and employees for delivering record adult-use, and medical cannabis revenue this quarter,” said Aleafia Health CEO Geoffrey Benic in the company’s August 12 press release. “Despite industry-wide price compression, we have maintained robust gross margins on cannabis revenue when compared to other Canadian licensed producers, based on most recently reported quarterly results. This was achieved through our twin pillars of low-cost cultivation and high-quality, differentiated cannabis derivative formats.”
After reporting $45 million in revenue in 2020, Velagapudi projects a slight dip to $41 million for 2021, followed by a near 50 per cent potential year-over-year increase to $61 million in 2022, with another 50 per cent jump to a projected $93 million in the works for 2023. The company’s gross margin is expected to dip in that timeframe, falling from 53 per cent in 2020 to a projected 43 per cent in 2021, then to 41 per cent in 2022 before settling in at a projected 40 per cent in 2023.
Meanwhile, Velagapudi projects the company’s EBITDA to turn positive in 2023 at a projected $1 million following projected losses of $14 million and $16 million in 2021 and 2022, respectively.
Velagapudi believes the company will need to reach a revenue base between $25 and $30 million to generate positive operating cash flow, with an expectation that the company will reach that benchmark by 2023.
“Consistent improvement in adult-use cannabis market share, maintaining strong gross margins along with expanding revenue base, and visibility over positive operating cash flow may be key for improving the valuation multiples for Aleafia,” Velagapudi said.
10/05/2021 07:02 AM ET
Aleafia Health Builds on Adult-use Momentum with Retailer Harvest Party
TORONTO, Oct. 05, 2021 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) ("Aleafia Health" or the "Company") hosted a second annual adult-use retailer harvest party at its outdoor cultivation facility, with over 300 cannabis store owners, managers, budtenders and industry leaders attending. The two-day conference included retailer tours at the 86 acre outdoor site in Port Perry, Ont. and education sessions featuring the company's cultivation methods and proprietary cultivars that make up its growing cannabis product portfolio.
"It was a privilege to provide a behind the scenes look at our outdoor cultivation facility and see firsthand the strong engagement and relationships we are building with cannabis retailers in Canada's largest market. Month over month, we continue to increase our market share and develop a meaningful following for our Sunday Market brand family," said Aleafia Health CEO Geoffrey Benic.
The Company has realized another strong period of sequential growth in adult-use sales in the quarter ending September 30, 2021, following a 93% increase in adult-use net revenue during Q2 2021. The growth has been in part driven by its everyday cannabis brand Divvy, with several important additional listings secured in Ontario launching October, including:
-- Black Widow CBD 14g Dried Flower: Capitalizing on a gap in the product
landscape for large format CBD-dominant dried flower, black widow is a
terpene rich, indica-dominant cultivar and long-standing signature strain
for Aleafia Health's medical patients.
-- FLO 14g Dried Flower: Flo's high-potency and unique terpene profile makes
it a highly sought-after cultivar now available for the first time in the
Ontario market, following a successful Alberta launch.
Part of the Sunday Market brand family which features five distinct brands with differentiated products tailored to specific consumer segments, Divvy leverages Aleafia Health's core competitive advantage of low-cost cultivation both at its Niagara Greenhouse and Port Perry outdoor cultivation facility. Also poised for a successful outdoor cultivation harvest, the Company completed planting at the 86-acre site over a month earlier than in 2020.
For Investor & Media Relations:
Nicholas Bergamini, VP Investor Relations
1-833-879-2533
IR@AleafiaHealth.com
LEARN MORE: www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada. The Company has developed an international footprint, with subsidiaries or investments in German and Australian medical cannabis companies and has products available in both markets. The Company owns and operates a virtual network of medical cannabis clinics staffed by physicians and nurse practitioners who have seen over 75,000 patients to date.
Aleafia Health owns three licensed cannabis production facilities and operates a strategically located distribution centre all in the province of Ontario, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of cannabis derivative products including oils, capsules, edibles, sublingual strips, and vapes, for sale in Canada in the medical and adult-use markets, and in select international jurisdictions.
I have not heard. That is a great question
When is the harvest due? It’s already getting cold in Canada and they are still haven’t announced anything. Behind again?
I hope so too. Small stocks like this have to be watched closely. I take comfort that so far they have done what they say they are going to do
The outdoor harvest should be about 4x's the size as last year's.
They brag about selling a lot of wholesale, so let's see if the wholesale is profitable.
We'll also be keenly looking to see if their own own branded products are generating consumer demand.
Followers
|
84
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
3371
|
Created
|
12/08/16
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |