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.
Aleafia Health Is A Major Canadian Cannabis Value Play
STOCKS Jan 26, 2021 • 6:47 AM EST
5 MIN READ • BY MICHAEL BERGER
https://technical420.com/cannabis-article/aleafia-health-is-a-major-canadian-cannabis-value-play/#
Although 2020 was a challenging year for the global economy, the cannabis industry has been recording strong growth and this is a trend that we expect to continue.
The COVID pandemic has played an important role in showing that the cannabis industry is defensive, and we are favorable on how the industry was able to adapt to a new market environment. From implementing a curbside sales program to declaring the cannabis sector to be essential, the industry remained operational in the early days of the pandemic and we are favorable on how businesses performed during this time.
On a comparative basis, the Canadian cannabis industry recorded impressive growth in 2020. When compared to the prior year, the amount of monthly revenue that was being generated by the Canada cannabis sector has more than doubled on average.
Based on these revenue metrics, we believe that Canadian Licensed Producers (LPs) are going to be reporting strong growth in future quarters. Although theses operators have been trending higher and rallying off its 2020 lows, we believe the market is overly focused on LPs that have strong brand recognition.
Some of the operators that have significant market awareness have not been able to execute on previously announced growth initiatives. We believe that some of these operators are trading at a substantial premium to its peers when valued on several profitability and growth metrics.
Aleafia Health Thesis
Aleafia Health Inc. (AH.TO) (ALEAF) is a Canadian LP that has been nothing short of an execution story and we believe that it is flying under the radar. During the last year, the company has executed on series of strategic growth initiatives that are levered to several attractive verticals of the cannabis industry and find the opportunity to be attractive due to the following:
Aleafia Health will be reporting in March and we are expecting a much improved balance sheet once the $25M in convertible debt is wiped out. The company has already addressed plans to repay the note holders prior to the date of maturity. The repayment will result in a $2M reduction in annual interest expense which will go straight to the bottom line.
Aleafia Health has constructed a state-of-the-art facility that complies with European Union Good Agricultural and Collection Practices (EU GACP) which allows them to export product to certain international markets
The company has been recording growth on the medical, recreational, and international side of the cannabis industry and we expect this trend to become more significant this year
Aleafia Health has significant potential catalysts for growth, and we believe the business has reached an inflection point
From a balance sheet standpoint, Aleafia Health is well capitalized and has been executing on a cost cutting strategy and has reported positive adjusted EBITDA in three of its last four quarters
The management team has a proven track record of success and we are favorable on the direction they are bringing the business
On a comparative basis, we find the valuation to be attractive and believe that Aleafia Health is trading at a significant discount to its peers
About Aleafia Health
Aleafia Health is a vertically integrated Canadian LP that sells cannabis health and wellness services and products in Canada and in international markets. The company has an attractive operating structure, and the business is comprised of medical clinics, education centers, and facilities for the production and sale of cannabis.
The Canadian LP owns two licensed indoor cannabis production facilities and one licensed large-scale outdoor cultivation facility. Aleafia Health has 160,000 square feet of licensed greenhouse cultivation space and 3.7 million square feet of outdoor cultivation space. With these facilities, the company can cultivate approx. 129,500 kilograms of cannabis and extract approx. 40,000 kilograms of cannabis per year.
Aleafia Health has been focused on the cannabis 2.0 opportunity and owns a diverse cannabis product portfolio that is comprised of high-margin derivative products (i.e. oils, capsules, and sprays). That’s been further built with a recent expansion to vape cartridges, sublingual strips, and ultra high-potency CBD oil. We are favorable on the approach that Aleafia Health’s management team used to execute on the cannabis 2.0 market and expect this vertical to record strong growth in 2021.
On the clinic side of the business, Aleafia Health has seen more than 75,000 patients and we are favorable on how these assets have supported growth on the medical side of the industry. The company operates one of the largest medical cannabis clinics in the world (has locations in three contents) that are staffed by medical doctors, nurse practitioners and educators.
During the last two years, Aleafia Health has executed on a series of organic and inorganic growth initiatives. The acquisitions that were made by the company have proven to be accretive and strategic in nature. As a result of this, we believe Aleafia Health represents a well-rounded business that has an attractive growth profile and think the market does not fully understand the amount of value that be generated through its business units.
Aleafia Health owns a best-in-class medical cannabis data aggregation platform that has more than 10 million data points that can be used for proprietary illness-specific product development. Data is a strategic asset and companies have shown a willingness to pay significant amounts of money to access to this type of information and better understand cannabis at the patient and the consumer level. We believe the data represents a key pillar of Aleafia Health’s long-term strategy and will monitor how the management team is able to capitalize on the data in the near and long-term.
In the early years Microsoft was flat for a long time. Piddling along for years. It was a great idea but it took a long time to become a “thing” I have lived more of my life without tech than I have with it and I remember my hubby saying he told his Dad to buy microsoft back in the day. iI can not remember what the price was back then but it was low and if his Dad had taken his advice he would have had a very comfortable life. It takes a long time to be an overnight success
Here is the trajectory of microsoft
https://www.macrotrends.net/stocks/charts/MSFT/microsoft/stock
Mackie Research Analyst McLeish appears to understand the sector as here is another article about his cannabis research analysis from DEC 2019:
https://www.cantechletter.com/2019/12/pot-sector-bankruptcies-are-coming-says-mackie-research/
If the PPS action preceded the news because some people knew the news was coming and they were able to depress the PPS to "load up", then we can expect the PPS to rise artificially.
We need to know more about when they want to bank profits.
AH.ca Canadian $1.50 to ALEAF U.S. $1.18.
Nice dip today then,,, news raising the price target.
Mackie Research ups Aleafia Health PT to $1.50 (Canadian) from $1
Stephen Kilmer
January 25, 2021
https://biotuesdays.com/2021/01/25/mackie-research-ups-aleafia-health-pt-to-1-50-canadian-from-1/?fbclid=IwAR2SUKhuDtte5Imk9935tCpjrstNfVSjBYwyqJLE2eC3B5VPNqCFamVpmbk
Mackie Research Capital raised its price target for Aleafia Health (TSX:AH) to $1.50 (Canadian) from $1, citing an exclusive agreement with Unifor, Canada’s largest private sector union, to support medical cannabis for its union members. The stock closed at 85 cents on Jan. 22.
“We view the Aleafia/Unifor deal as a breakthrough agreement for the Canadian medical cannabis industry,” writes analyst Greg McLeish. “This exclusive agreement will result in material medical cannabis revenue growth for Aleafia and it positions the company as the definitive leader in the Canadian medical cannabis industry,” he added.
Aleafia Health is a vertically integrated cannabis health and wellness company, with four primary business units: cannabis cultivation; health and wellness clinics; cannabis education; and retail distribution and provincial supply agreements. The company owns three cannabis product and cultivation facilities in Ontario.
Mr. McLeish said Aleafia will provide Unifor, which represents 315,000 workers, with access to its health and wellness ecosystem, including education and training, physician-led consultations, scripting, treatment and, where appropriate, medical cannabis products.
Increased access to medical cannabis coverage may also provide further cost savings and health benefits to both members and employers, including a reduction in reliance of traditional pharmaceutical prescriptions, Mr. McLeish added.
Not sure what you mean by MSFT chart and correlation with our stock. If you can be a bit more specific. Thanks in advance :)
Take a look at the microsoft chart, it will probably make you feel better. People are not willing to go to jail to use a computer but they will for weed. We are good, I buy any dips I am able
Yeah FUN. Appears to be just consolidating at this point now and why I think we'll recover in the next several days. Was way into overbought territory.
My guesstimate is either March 18th or the 19th.
Bring it on!
GLTA
End of Dip? --->>> Volume(Heavy Day) Today's volume of 977,732 shares is on pace to be much greater than ALEAF's 10-day average volume of 670,625 shares.
977,732
January 25, 2021 1:51pm ET
Price
$0.5933
Day's Change
-0.0749 (-11.22%)
It seems as if the PPS parachuted down 7 cents and then held thereabouts.
I does appear that volume will top 1M.
I bet on it by adding.
I sure hope so. Been holding these shares for over 3 years now. Unbelievable we are back to fifties.
I'm confident it'll move my friend. And I'm gonna take advantage of the dip too.
This crazy. If these news can’t move this stock, what will!?
Might just be letting their buddies reload. Swag.
Big hit on the PPS today
The short interest had actually gone up a bit on the Jan A report but I suspect they got caught by the great news and had to turn around and cover those. jmo. We'll see soon when the B report comes out.
Also feels like they are weeding out the panic short play. Glal
So with the union contracts is it a set amount they pay every year and if so deals like this would almost be like having a cash account for operations each year.? No? I see this deal as great news. Any thoughts?
Thank you both
The Q-4 should be coming out in the first two weeks of March, My guess is 11 March, 2021. I'm hoping earlier. Good Day...
Ndakota
Annual financial statements must be filed within 90 days of year-end
Do you know the date for the financials?
Let's hope the short covering wasn't the sole stimulator driving the PPS up.
I am hopeful that every day that we get closer to the ER, the revenue prospects of $15M+ becomes the fundamental reason and more people join the party.
$ALEAFs news last week was large!
Does this mean they may have just raised their money for this year and possibly the next Ten??!!
Thanks for that Information, I'm not sure if many investors really Know what you just explained, sounds like a Good Deal for Many in the unifor Union..Good Day..
Ndakota
Among the major news of the week was Aleafia Health (TSX: AH) (OTCQX: ALEAF) partnership with trade union Unifor – Canada’s largest private union, serving more than 300,000 members. The goal is to “support union members, retirees and their eligible dependents who receive medical cannabis insurance coverage through Unifor’s collective bargaining agreements.” Aleafia will serve union members and their families through its network of medical cannabis clinics, products, and scheduled same day delivery, according to Aleafia CEO Geoffrey Benic.
https://try.benzingapro.com/cannabis-insider-4-1611352801222?ecid=ACsprvv_3X7evIzeVu-o-sZ75LCN1tiHuDWZTzQgZgukvXBt-eGlr-GNUyfRa6VPrKlGn66_g96d&utm_campaign=Cannabis%20Insider&utm_medium=email&_hsmi=107727471&_hsenc=p2ANqtz--_r7DRMlrK3GNOoqQHCo0Da8F2qDofdKOd1hoVs1SMZ3uK1IzM_I_nDTmtGgUqwDBa-F-qSUCz0IP9Bo4NTjB0lFSsXA&utm_content=107727471&utm_source=hs_email
This is very good news! I think people who do not have unions will underestimate the importance of this news! Here in Canada we do not pay (we do pay when we buy taxable items like weed and non essential goods) For Doctors or hospitals. My Dad had a million dollars worth of heart surgery at a world class teaching hospital and we did not pay a dime! We do not have HMOs but we do pay for our own meds unless disadvantaged or in a Union. Dad is a GM retiree.... he will be able to get his cannabis script filled on his benefit plan now! He has paid for it himself for 2 years. The benefits cover pharma, sleep, pain, anxiety etc and now he can use nautral medicine! This is so cool!
Needed to pull back a little. Opportunities.
Too bad the PPS is walking backwards.
Nice support today. Great thing coming. Have a great weekend all!
As a Union we will support our Local bargaining committees to add this coverage where possible.
I've never belonged to a Union, but it sound like each Committee, has a Job to ensure safe practice, which is easy enough with the 23 Facilities ALEAF has for them to reach out to.
Mr. Benic and his Team have done a great Job moving Fwd. Each step has been adding to the future. If I'm not mistaken They expect the Final E.U. Certification some time this Month. That IMHO is a Huge Move, and adds many countries to their Mix..Good Day...
Ndakota
$aleaf $0.6971 v -0.0029 (-0.41%)
Volume: 381,575 @01/21/21 3:59:51 PM EST
There is “add that coverage where possible” but the companies are spending wads of money on their drug plans and if Aleafia presents their case properly they will jump at the chance to make their employees healthy, happy, comfortable, and get a good night’s sleep! How many prescriptions would that replace with 1?!
Canada's Largest Private Union To Cover Medical Cannabis Via Aleafia Deal
1/21/21, 3:41 PM
January 21, 2021 03:41 PM ET (BZ Newswire) -- Cannabis
Canadian cannabis company Aleafia Health (TSX:AH) (OTCQX:ALEAF) has partnered with trade union Unifor.
The goal is to “support union members, retirees and their eligible dependents who receive medical cannabis insurance coverage through Unifor’s collective bargaining agreements.”
Unifor, Canada’s largest private union, has more than 300,000 members and represents workers at the big three automakers concentrated in Ontario.
Aleafia will serve union members and their families through its network of medical cannabis clinics, products, and scheduled same day delivery, according to Aleafia CEO Geoffrey Benic.
While patients currently pay out of pocket for medical cannabis, Benic says this is changing, as employers are now realizing the benefits of medical cannabis as an alternative to traditional pharmaceuticals.
“What we’re most excited about this development is that it plays to our strengths as patient focused company and builds a defensible moat around around our business," he added. "Obviously the adult-use market gets the most attention, but we think that medical cannabis has been largely overlooked and we will capitalize on that opportunity."
Having union members at Canada’s largest employers receive insurance coverage for cannabis is "an important breakthrough in access," Benic says, believing it benefits patients as well as Aleafia's continued growth.
This news just hit on market wire.
Let it churn..! Build steam and grow. Till it blows the roof off this muther!!! $$aleafia$$
My understanding is that this is not a done deal. the way I read this article is that the union is going to try and get it as part of their benefits. The company that these union members work for, still has to approve it..
I agree, done deal. And we will all be very happy imo.
It always takes the following day, Most of the people on this Board already have invested. we'll see a reflection Friday IMHO.. Good Day..
Ndakota
This agreement will provide thousands of union members and their families with improved and affordable access to medical cannabis care, and ultimately be one of the largest breakthroughs in patient access since the early days of legalization in Canada,” said Geoffrey Benic, Aleafia Health CEO.
“Our dedicated team of medical professionals and program managers are excited to begin working directly with Unifor members and launching this program.”
When I read these 2 Paragraphs. in the Article and the First paragraph where they have signed a 10 Year Agreement, This Deal is Done.
"Unifor members across the country deserve access to the benefits of medical cannabis coverage through their benefits. As a union we will support our local bargaining committees to add this coverage where possible," said Jerry Dias, Unifor National President.
And yet we are going down again. How can this happen?
It will largely imo. I'm patient.
Go Aleafia great things to come!
Can't wait for it to generate $s
Unifor and Aleafia Health enter exclusive agreement to support medical cannabis coverage for members
January 21, 2021
TORONTO – Unifor and Aleafia Health Inc. (TSX: AH, OTC: ALEAF), have entered into an exclusive 10-year agreement to support union members, retirees and their eligible dependents who receive medical cannabis insurance coverage through Unifor’s collective bargaining agreements.
"Unifor members across the country deserve access to the benefits of medical cannabis coverage through their benefits. As a union we will support our local bargaining committees to add this coverage where possible," said Jerry Dias, Unifor National President.
The agreement supports a historic breakthrough in access to legal cannabis in Canada.
Aleafia brings unique national scale, organization and expertise to provide union members, retirees and their eligible dependents with access to medical cannabis product insurance reimbursement and physician-led cannabinoid therapy.
“This agreement will provide thousands of union members and their families with improved and affordable access to medical cannabis care, and ultimately be one of the largest breakthroughs in patient access since the early days of legalization in Canada,” said Geoffrey Benic, Aleafia Health CEO. “Our dedicated team of medical professionals and program managers are excited to begin working directly with Unifor members and launching this program.”
Through its subsidiaries, Aleafia Health provides an enhanced level of service not available through any other Canadian cannabis company. Members will receive a customized wellness regime, including cannabis education, virtual physician consultation, medical authorization, when appropriate, product ordering and scheduled home delivery, all in one business day.
Physician Expertise: Aleafia Health is a pioneer in cannabinoid therapy in Canada, providing care to over 75,000 unique patients. This has also provided actionable data on best practices on dosing, modes of intake, strain selection and patient safety, resulting in peer reviewed research published in medical journals. Best in class electronic medical records systems also allow close collaboration between Canabo physicians and Unifor members’ family doctor.
Virtual Consultation: Canabo today serves patients in every province of Canada. Since the beginning of Covid-19, the Company has transitioned to completing 100 per cent of consultations online and over the phone, allowing patients to receive professional care from the safety and convenience of their homes.
Product Portfolio: Through its flagship medical cannabis brand Emblem, members will benefit from access to a diverse portfolio of high-quality cannabis formats, including oils, capsules, sprays, sublingual strips, vapes and exclusive dried flower cultivars. In addition, the Company looks forward to releasing a new line of CBD wellness products, which includes formats not yet available in Canada.
Scheduled Same Day Delivery: Through its AssureHome Delivery platform, Unifor members can order and will receive their medical cannabis order that evening, with best in class delivery times.
As Canada’s largest private sector union, Unifor represents over 315,000 members across every sector of the Canadian economy. Aleafia Health, a global cannabis health and wellness company, has provided over 75,000 individual patients with cannabinoid therapy through its national network of clinics, along with access to high-quality, federally regulated medical cannabis products.
About Unifor: https://www.unifor.org/en/about-unifor
Unifor is Canada's largest union in the private sector, representing 315,000 workers in every major area of the economy. The union advocates for all working people and their rights, fights for equality and social justice in Canada
Followers
|
83
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
3373
|
Created
|
12/08/16
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |