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They are supplying cannabis as medicine to the biggest Union in Canada. Ford Canada employees and their families now get Emblem as part of their benefits. You go ahead and sell. I will buy them!
Very good info here!
The link for the Benzinga Cannabis conference.
I agree, the content of the PR was "wanting more".
To me it is evident that if the customer was someone to brag about, they would be bragging, and letting us know the size and dollars of the order.
It happened, so they told us hoping people would be excited.
Without real data though, who can be excited vs frustrated by the unanswered questions.
kettleman Thursday, 06/03/21 01:49:45 PM
Re: FUNMAN post# 3109
Post # 3110 of 3110
The Deal with Germany and Acnos Pharma in Germany seems to be thrown to the Wind, the Deal was a 60% Emblem/Aleaf, 40% Acnos. This deal does not sound like That... Acnos has 20,000 Pharmacy's ???? After the Dump of 40 million shares they just did, I Trimmed my holdings and not sure why I'm Holding what I Have... Can Anyone tell Me Why the CEO says he has the second Mover advantage???? I do Not see any advantage, today's News is OKAY, But way too uninformed.. is this the start of Acnos??? Good Day...
Ndakota
The Deal with Germany and Acnos Pharma in Germany seems to be thrown to the Wind, the Deal was a 60% Emblem/Aleaf, 40% Acnos. This deal does not sound like That... Acnos has 20,000 Pharmacy's ???? After the Dump of 40 million shares they just did, I Trimmed my holdings and not sure why I'm Holding what I Have... Can Anyone tell Me Why the CEO says he has the second Mover advantage???? I do Not see any advantage, today's News is OKAY, But way too uninformed.. is this the start of Acnos??? Good Day...
Ndakota
The more they self-promote the better, but consistent revenues going up and to the right on the chart is what we all really need.
They let us down when it appeared they we're just talking about a "one-quarter-wonder". I really thought they were talking about a new revenue baseline.
Maybe if they could get the exclusive license to distribute an edible product like INDIVA did, they could be selling more added value lines. I know they did it with KinSlips but they aren't crushing-it.
Right now I'm hoping Reddit takes another run at Aleafia
$oldier Hard Thursday, 06/03/21 10:08:24 AM
Re: FUNMAN post# 3103
Post # 3108 of 3108
Nice for $ALEAF to be recognized and invited. Plus major news this morning!
Nice for $ALEAF to be recognized and invited. Plus major news this morning!
Comments on PR: Germany? Do we remember who the strategic partner is? Do we know the customer? --->>> Aleafia Health Completes Breakthrough Medical Cannabis Export to Germany
https://aleafiahealth.com/news-releases/aleafia-health-completes-breakthrough-medical-cannabis-export-to-germany/
This is a good deal because it opens up another wholesale distribution lane, though it would be a bigger deal if they were shipping finished added value products.
Still a consistent revenue stream is desired because the PPS pummeling caused by quarterly inconsistencies is a pain in the ass. - FUNMAN
Aleafia Health Completes Breakthrough Medical Cannabis Export to Germany
https://www.globenewswire.com/news-release/2021/06/03/2241139/0/en/Aleafia-Health-Completes-Breakthrough-Medical-Cannabis-Export-to-Germany.html
Aleafia Health: Invitation to the Benzinga Virtual Cannabis Capital Conference
Newsfile Corp.
Wed, June 2, 2021, 8:15 PM·1 min read
Detroit, Michigan--(Newsfile Corp. - June 2, 2021) - Aleafia Health (TSX: AH) will be presenting at the Benzinga Cannabis Capital Conference taking place on June 3-4, 2021. We invite our shareholder and all interested parties to join us for a full day of networking, dealmaking and discovery. Sign up to get a free spectator pass for the event: https://events.benzinga.com/ccc-free-registration
About Benzinga Cannabis Capital Conference
Benzinga's virtual Cannabis Capital Conference is guaranteed to offer participants all the benefits of an immersive and robust in-person conference from any remote location. The conference will feature an interactive forum of live presentations from top CEOs, investors, and leaders in the cannabis space. Don't miss this opportunity to connect with THE cannabis movers and shakers from across the globe.
For more information and/or to register for the conference please visit: https://events.benzinga.com/ccc-free-registration
We look forward to seeing you there.
For further information:
Aleafia Health
Nicholas Bergamini
1-833-879-2533
IR@AleafiaHealth.com
www.aleafiahealth.com
Looks like a cup and handle forming
If you are a shareholder here, you could share this video and let people know Bogart’s Kitchen Peach Mango Chews are gentle and yummy! And suitable for people who are allergic to gluten....... they can not advertise their product but I am sure others would buy them if they knew.
Please tell me how they are “becoming a garbage stock”? They are making more good business moves than CGC in my opinion, to me they are possibly the deal of the Canadian market (which, tho people scoff is the size of California) They have improved their operations and gotten a huge company to pay for their employee’s weed.
I hear this every year for the last 4 years. They are become a garbage stock. Sadly I have lots of shares and did not sell any when it was approaching $1 to recover my money partially.
This is not “a” thing this is “the” thing. This medicine is so effective people are willing to risk jail to obtain it. If they do it right they will BE Pfizer not taken over by them.
https://www.liebertpub.com/doi/10.1089/can.2020.0129
https://www.jpain.org/action/consumeSharedSessionAction?JSESSIONID=aaa-Xc04HcplgfPASYnMx&MAID=CwhIXUrQH5A1PhFC6ZXWnQ%3D%3D&SERVER=WZ6myaEXBLFD8VbcQEfOcg%3D%3D&I2KBRCK=1&ORIGIN=681261308&RD=RD&exp=1qHajxuhW%252FFcdmQ186OvfQ%253D%253D
Isn’t that convenient. They will not need to be taken over. They will do the taking over, one union at a time. Saving employers enormous amounts of money while giving workers great relief with much fewer side effects than traditional meds all while making healthy margins. Great proof of concept that will be entrenched just in time for the US to open :)
Very informative/interesting FM.
Thank you
GL!
Mednow Becomes Preferred Provider to Police Pensioners Association of Ontario; Appoints New CFO Guess who?
Over 12,000 members will have access to Mednow’s virtual pharmacy and delivery service
First large institutional account for Mednow
Benjamin Ferdinand appointed CFO
May 17, 2021 08:57 AM Eastern Daylight Time
TORONTO–(BUSINESS WIRE)–Mednow Inc. (TSXV:MNOW)(“Mednow” or the “Company”), Canada’s on-demand virtual pharmacy, is pleased to announce the Company has entered into a Preferred Pharmacy Provider Agreement dated May 16, 2021, with the Police Pensioners Association of Ontario (“PPAO”).
Through this agreement, the PPAO’s over 12,000 members will have access to transparent pricing, free delivery anywhere in Ontario including free same-day delivery in the Greater Toronto Area, and access to Mednow’s digital health platform which includes prescription management and telemedicine. Mednow’s preferred provider status will be advertised to the PPAO’s members through its newsletters and marketing website. Members can easily choose to access Mednow’s services via the Company’s digital platform or call center. Pharmacists are available by phone or text and can consult with the members from the comfort of their homes on all their medication needs.
“We are absolutely honored to serve PPAO members who have dedicated their lives to serving the public. Associations like the PPAO and companies are all recognizing that their health care plan beneficiaries require access to innovative solutions to meet their evolving needs. As we establish a national presence, we believe we will build more momentum in attracting institutional caliber customers who require a national pharmacy provider,” said Karim Nassar, CEO of Mednow.
CFO Appointment
Mednow is also pleased to announce the appointment of Benjamin Ferdinand as Chief Financial Officer, effective June 7, 2021. Mr. Ferdinand was most recently CFO of Aleafia Health Inc. (TSX: AH) and has extensive experience in finance, strategy, and investment banking. Mr. Ferdinand will be replacing Joshua Lebovic, who was previously appointed CFO on a transitionary basis.
Mr. Nassar added, “We are extremely pleased to have Benjamin join our team. His experience is an excellent complement to our executive leadership team and we plan to make him an integral part of our growth as we strive to become a household name across Canada. We would also like to extend a sincere thank you to Josh, who was instrumental to our IPO and building our finance function.”
About Mednow Inc
Mednow Inc. (TSXV:MNOW) is a healthcare technology company offering virtual access with exceptional care. Designed with access and quality care in mind, Mednow.ca provides virtual pharmacy services with convenience and through an interdisciplinary approach to healthcare that is focused on the patient experience. Pharmacy services include free at-home delivery of medications, a user-friendly interface for easy upload, transfer, and refill of prescriptions, access to healthcare professionals through an intuitive chat experience, a specialized PillSmart™ system that packages prescriptions and vitamins by date and time, as well as access to telemedicine.
To learn more, follow Mednow on Facebook, Twitter, LinkedIn, and Instagram, as well as visit www.mednow.ca/
About the PPAO
The Police Pensioners Association of Ontario was founded in 1997 by a group of active and retired Ontario police officers representing multiple police services throughout the province. The purpose was, and is, to unite fraternally and promote the mutual interests of police retirees and encourage a cooperative relationship. For over 20 years the PPAO has advocated for its members to maintain or improve their quality of life. We encourage and promote cooperative enterprise and together, are a unified voice on issues that affect pensions and health. We bring further value by partnering with businesses to bring our members services at a reduced cost.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the timing of operations beginning in Manitoba and Nova Scotia, receipt of all required regulatory approvals from the Manitoba College of Pharmacists, the Nova Scotia College of Pharmacists and other regulatory bodies with oversight of pharmacy practices, the ability to service clients from the Manitoba and Nova Scotia fulfillment centers, the establishment of a presence in Quebec and Ontario, and the benefits and results arising from a national presence. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends,” “anticipates,” “it is expected,” or variations of such words and phrases, or statements that certain actions, events or results “may,” “could,” “should,” or “would” occur. Forward-looking statements are based on certain material assumptions and analyses made by the management of the Company and the opinions and estimates of management of the Company as of the date of this press release, including that the transactions contemplated herein will close on the terms and timeline as anticipated by the management of the Company. Although the Company considers these assumptions to be reasonable based on information currently available to them, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties, and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that the transactions contemplated herein will not close on the terms and timeline as anticipated by the management of the Company, or at all, the risk that the Company will not receive required regulatory approvals, the risk that the Company will be unable to complete its proposed activities or realize the benefits or results therefrom, and the other risks and uncertainties applicable to the Company and the business of the Company as set forth in the Company’s final long-form prospectus dated February 26, 2021, and its other disclosure available under the Company’s profile at www.sedar.com. There can be no assurance that the transactions contemplated in this news release will complete. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not intend and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules, and regulations. We seek safe harbor.
JMO—
Aleafia will be consumed by one of the bigger players in the MJ market this year.
The PPS is getting ripe and attractive for such a move.
We can only hope that some shareholder consideration/respect will be part of the equation.
GLTA
Now actual research is being done your patience as investors will be handsomely rewarded.
https://www.prnewswire.com/news-releases/khiron-comments-on-the-results-of-project-twenty21--uks-largest-observational-study-into-medical-cannabis-products-301288477.html
Please feel free to use it anywhere/anytime
I didn’t create but it’s certainly relevant/applicable In the investment world.
All have experienced it
Should have kept a protective “tinny” aka jockstrap from long ago.
Enjoy your weekend and stay safe.
FUNNY clip. Good analogy.
Diogenes of Sinope Member Level Friday, 05/14/21 08:25:17 PM
Re: FUNMAN post# 3088
Post # 3089 of 3089
ALEAF?? Sadly, realistically—
The kicks started coming long ago
https://investorshub.advfn.com/uimage/uploads/2015/11/20/rhvvmBalls.gif
At what point does the shareholders pain stop and ALEAF becomes a buy or decent trade once again?
Stay tuned—GL!
ALEAF?? Sadly, realistically—
The kicks started coming long ago
https://investorshub.advfn.com/uimage/uploads/2015/11/20/rhvvmBalls.gif
At what point does the shareholders pain stop and ALEAF becomes a buy or decent trade once again?
Stay tuned—GL!
Sounds like the start of something bad ... Aleafia Health announces key executive changes
May 14, 2021 4:06 PM ETAleafia Health Inc. (ALEAF)
By: Manshi Mamtora, CFA
Aleafia Health (OTCQX:ALEAF) announces that Benjamin Ferdinand, CFO, is departing the company to pursue a new opportunity in the technology sector.
He will continue to serve as CFO during a transition period; search process has been initiated.
Chief Commercial Officer, Tricia Symmes currently leads the medical cannabis sales and new patient acquisition programs and will assume responsibility for clinic operations moving forward.
Aleafia Health Announces Changes to Executive Team
https://www.globenewswire.com/news-release/2021/05/14/2230173/0/en/Aleafia-Health-Announces-Changes-to-Executive-Team.html
A lot of the US companies do the same kind of stuff. They have no way to raise funds so they sell hard assets like greenhouses and buildings and lease them back. Isn’t GTII growing because of that? One of the tickers in the ETFs is enjoying the limelight because of the same kind of deal. Aleafia’s is just a smaller scale but my impression is that it is the same idea.
Because they are in the psychedelic space. Aleafia gives them a synergy and legitimacy win win :) I like that kind of game
That sounds great, but why did the other party do it?
They offloaded real estate commitments and leases. They have been 100% online and their clinics were being used as empty office space. They get the same situation but someone else paid them for the leases and when covid is over there will be more access to onboard patients through the cooperative effort. It is win win. Aleafia gets needed cash, their staff has a place to work and they maintain control of their entire patient roster. They will be running the offices as usual but somebody else pays the rent. That is how I understand it.
Imo we won't see that but I am fully prepared should we.
They ended up raising money after they did that.
What makes no sense about patient number bragging is they got out of the ownership position of Canabo Medical Clinic.
They need to update the website.
No, this shall pass, but before then I think we'll see the PPS in the 20's.
We're on the way into the 20's
Tilray made 7x the revenue but their price is 43x higher. I will continue to hold on to Aleafia lol! I honestly think most people do not know Tilray is a Canadian company. I think folks buy their shares just because they are listed in the US
Compared to Tilray they are not that bad lol! Their price is much more reasonable.
https://www.bnnbloomberg.ca/cannabis-canada-weekly-canadians-doubled-pot-purchases-to-2-6b-in-lockdown-filled-2020-1.1566114
TIlray posts first adjusted profitable quarter as Aphria deal set to close in Q2
Tilray Inc. reported its first profitable quarter - on an adjusted basis - while affirming the company's upcoming merger with Aphria Inc. will close in the second quarter of the year. Tilray said it generated US$50.7 million in net revenue in its fourth quarter and US$2.2 million in positive adjusted EBITDA. Tilray still reported a US$3-million net loss in the quarter. Tilray's revenue gains were largely due to improved sales in its Canadian recreational and international medical cannabis business. The company said it cut US$57 million in costs over the past year to help it become profitable ahead of the Aphria deal, which is expected to yield another US$100 million in "efficiencies."
I am holding. Good developments on the horizon
https://seekingalpha.com/article/4427364-aleafia-health-inc-aleaf-ceo-geoffrey-benic-on-q1-2021-results-earnings-call-transcript?utm_source=dowjonesnewswire.com&utm_medium=referral
Thank you. Joining me on the call today are Aleafia Health CEO, Geoffrey Benic; and CFO, Benjamin Ferdinand.
This morning, Aleafia Health filed on SEDAR, its financial statements and associated management discussion and analysis for the 3 months ended March 31, 2021. All comments to be made on this call today should be taken with reference to and are qualified in their entirety by those documents. Today's call includes estimates and other forward-looking information from which our actual results could differ. Please review the cautionary language in today's press release regarding various factors, assumptions and risks that could cause our actual results to differ.
Furthermore, during this call, we will refer to certain non-IFRS financial measures, including adjusted EBITDA and adjusted gross margin. These measures do not have any standardized meaning under IFRS, and our approach to calculating these measures may differ from that of other issuers. And so these measures may not be directly comparable. Please see this quarter's MD&A for more information about these measures and reconciliation to IFRS.
I will now pass the call over to our CEO, Geoffrey Benic.
Geoffrey Benic
Thank you, Nick. It's great speaking with my fellow shareholders today. This is now the sixth earnings call that we've conducted in the midst of COVID-19, and under various states of public health lockdowns. But it also feels like it will be our last as we see mass vaccination campaign in Ontario, rapidly picking up steam.
I'd like to thank our employees for their diligence they've shown over the last year in this environment. We've managed to operate 4 production facilities with 0 outbreaks and no significant production delays, while continuing to see thousands of patients virtually through our medical cannabis clinic network. The first quarter of 2021 was an important one for us as we continue with the deployment of our expanded product portfolio in the Canadian medical and adult-use markets. Top line revenue was down sequentially. But this was attributed entirely to a decline in wholesale revenue. In our previous earnings call in MD&A, we said that we expected this decline to occur as we transition our sales mix away from wholesale and towards the adult-use market and the Canadian International Medical Cannabis channels.
Adult-use sales increased 22% sequentially. Looking forward in the first 40 days of Q2 2021, adult-use sales have surpassed the total in Q1 already. Clearly, we are making some significant strides in the adult-use market, which we expect to be a key growth driver for us in the last 9 months of this year. Many of our peers have spoken of some challenges in dealing with certain provincial government wholesalers. This includes SKU rationalization and limiting the number of shipments they accept at their warehouse due to COVID. Certainly, we have felt this as well to a certain degree. But as anyone who has been following our product launches knows, we've had a tremendous amount of success in securing listings from our new products.
We have secured a total of 19 new listings in the adult-use market this year alone across a broad range of formats, including edibles, flowers and wellness. What's most encouraging to me is that our sales growth is being driven by 2 key factors: one, is our Cannabis 2.0 portfolio, with our 510 vape cartridges and Kin Slips sublingual strips, accounting for 50% of the adult-use sales in Q1. Secondly, we began to enter the dried flower and pre-roll space in a meaningful way with the launch of our Divvy brand at the end of this reporting period. In Q2, thus far, we've already more than doubled our previous quarter sales figures for both dried flower and pre-rolls. Our Divvy Sour Kush pre-rolls were the #1 selling value offering on the Ontario cannabis stores e-commerce site for the last 2 weeks.
I'm pleased to report that due to this early success of our dried flower brand, we've secured additional provincial listings for 10-gram milled flower and 14-gram dried flower SKUs. This is an important step for us because these new listings represent our first large-format SKUs. From both a top line and margin contribution perspective, this is certainly our next adult-use revenue catalyst.
A big part of the early success we are having in the value segment is from our outdoor cultivation facility. This has really turned into a 12-month-a-year operation. In the past 2 years, we received 5 separate licenses, either for additional acreages or for key drying buildings in the middle of the growing season. That uncertainty caused many challenges that we will not face this year. Our team has been propagating clones since November on site, and we spent the last month preparing the field for planting, which we expect to start at the end of May.
In addition to dried flower, we have some further product portfolio developments during the quarter, which are important both in the medical and consumer segments. Our product development team has really begun to establish a track record of finding and exploiting gaps in the product landscape where we see some unmet demand. Likewise, we've shown strong execution in the research and development, formulation and production of these products, which don't exist elsewhere in Canada.
We see a major gap in the marketplace for CBD dominant wellness products in familiar formats that aren't yet available within cannabis. We've recently launched Omega CBD Soft Gels with omega fish oil products, a top 3 nutritional supplement in Canada. Complementing this are CBD bath bombs and our high potency CBD 50 oil offering. As we begun to establish a presence and have success in the allo use market, we're also improving the scale and service of our highly differentiated medical cannabis ecosystem. The patient ecosystem provides the full suite of care to medical cannabis patients, all as a part of our seamless experience. At its core, that means medical cannabis physicians, consultations, educations, products and delivery. Not only are we the only company that offers all 4 elements of these services. We are also an industry leader in each.
The importance of our medical cannabis ecosystem has only increased due to COVID-19, which will leave lasting changes in how we live and work. The rapid rise of e-commerce will continue. That's why we invested in our Toronto area distribution center, which allows patients to order at 2:00 p.m. and have their medicine hand delivered by our careers that same evening. This is the best service available in the cannabis industry, and a unique differentiator for Aleafia Health. Likewise, we intend to continue offering virtual only cannabis consultations to our patients who value its convenience and accessibility.
Scheduled same-day delivery, virtual consultations and our growing suite of medical cannabis products provide a unique ecosystem for patients. It is completely differentiated value proposition for patients that does not exist elsewhere in the Canadian cannabis industry. But the missing piece, which unlocks the most value is insurance coverage. That's because for most people, their medicine is not a pocket experience. We are beginning to change that through our exclusive partnership with Unifor, Canada's largest private sector union with over 315,000 members. Through collective parting with some of Canada's largest employers, Unifor is advocating for medical cannabis coverage an insurance plan. This program has just launched to unionize employees of the Ford Motor Company of Canada. I'm very happy to report that we have just begun processing the first patients as part of the Unifor program. They are able to purchase medical cannabis from us, and be reimbursed through their insurance plan.
We are working diligently to expand this program, and are well underway in discussions with other major employers in Canada.
Benjamin, over to you.
Benjamin Ferdinand
Thanks, Geoff. With respect to the clinic transaction with Myconic Capital that we announced yesterday, we view this as a financial transaction with limited effect on our operations. As Geoff said, we moved to a virtual-only model for our clinic business, which is something that is more cost effective and better for our patients. Because of this shift, our physical clinic locations are not fully utilized. As a result, we have sold certain physical clinic assets, including leases.
We did not sell patient data nor the Canabo legal entity or brand, and we will continue to operate the clinics and provide care for patients virtually. We believe this provides substantial upside to Aleafia with the consideration paid to Aleafia currently valued at approximately $12 million.
Getting back to Q1, starting with our financial position. We repaid $25 million in convertible debt during the quarter. This cuts our total debt load by approximately 40%. With regards to cannabis sales, it's helpful to drill down a little bit. To provide better insight on both revenue and gross margin, we've segmented it in our MD&A. Our medical cannabis adjusted gross margins improved for the third consecutive quarter to 53%. Likewise, our revenue per gram equivalent sold improved for the fourth straight quarter to $8.46. This improvement in adjusted gross margins in medical was driven by 2 factors. One, we're benefiting from economies of scale and greater operational efficiencies from our state-of-the-art manufacturing and innovation facility in Paris. Secondly, we're able to capture greater margin and some key new product launches, including Kin Slips and high potency CBD oil.
It's much the same story in adult-use, where we've reported 56% adjusted gross margin, our best to date in this segment. In addition to some of the high margin cannabis-derivative formats I just mentioned, we're also benefiting from our low-cost outdoor cultivation advantage.
Now the flowers segment is incredibly important in adult-use, but it's also highly competitive. The very best greenhouse producers clock in at around $0.50 per gram to produce flower. So our low cost outdoor grow makes a substantial difference in margins. As Geoff said, the decline in total revenue compared to Q4 was solely due to a decline in domestic wholesale revenue. As we align our sales mix to more valuable segments, this has left us with a transitory period from a top line sales perspective.
Lastly, I'll touch on the international opportunity. Q1 2021 was the first time we've reported international sales in 2 consecutive quarters. The most important immediate opportunity on the international front is through the export of our greenhouse grown flower to the European market. This has been over a year-long regulatory process with our European partners with both sides navigating through a tremendous amount of regulatory hurdles. We are now making strides. Following certified lab testing in Germany, our signature THC cultivar has been approved by German regulators, and a key customer has also received their import permit. That leaves us with the final step of a Health Canada export permit for which we have applied. Certainly, the international opportunity does test our patients, but we are making strides.
With significant barriers to entry, we believe strongly that it will be well worth it.
Operator, over to you.
Question-and-Answer Session
Operator
[Operator Instructions]. Your first question comes from Rahul Sarugaser with Raymond James.
Rahul Sarugaser
So we clearly see that the wholesale has been down across the sector. So not a surprise to see wholesale attenuated. I guess maybe my question is, how should we be thinking about wholesale in the medium term? But also, as we look at medical revenue, we tend to correlate that with the number of active patients in the clinics. And please forgive me if I -- correct me if I'm wrong. It looks like the number of patients has declined a bit. So maybe you can give us a little color in terms of how we're looking at revenue trajectory, both in wholesale, but also in the medical clinic channels.
Benjamin Ferdinand
Thanks, Rahul. It's Ben. So I'll address them in turn. I'll start with wholesale. So we're not in a position to give guidance, but at a high level, we do expect to see continued growth in adult-use, international and medical cannabis sales through the year. And it's -- as we've discussed in previous conversations on these calls, it's part of a concerted realignment of our sales mix to a more sustainable and profitable sales channel mix. Having said that, we'll continue to be opportunistic in domestic wholesale when opportunities present themselves. And so that's the way we think about the wholesale side. On the medical side, to your point about the active patients. So earlier in the year, due to -- last year due to COVID, there was -- the government had an extension, an automatic extension of scripts. And so this led to a large increase. But as those expiries have come off, you're getting back to more normalized levels.
Rahul Sarugaser
Terrific. And then given yesterday's announcements of the sales of brick-and-mortar clinics, I guess I want to understand the strategy there, given that Aleafia really is an ecosystem company with all of these different elements that feed into each other. So how is the strategy evolving from essentially divesting these brick-and-mortar and moving towards a more virtual format?
Geoffrey Benic
Yes. So the strategy hasn't changed, Rahul. In fact, we think that it's improved. And that's not the case also. So we've retained ownership of cannibal patient data and contact information. The cannibal brand, the IP that we built over the 5-year track record, is ours. We've just entered into an agreement to continue operating the clinics. So essentially, we operate the clinics. We still have access to them. They're still a big part of our business. We've just been able to take a lot of that cost. In operating it and move it over to another entity that is also going to focus in on other parts of mental health, and opportunities in mental health. So for from our perspective, we think that it's been -- it was a great move in terms of our strategy, in terms of reducing costs in terms of creating another revenue stream for us without changing our strategy on how we're going to bring new patients onto our platform.
Rahul Sarugaser
Terrific. That's very helpful. And do one -- just one last question then. Last -- on the last call, we talked a little bit about the Unifor deal and your sort of estimates of when that will start to yield revenue as patients onboard. And I think we had talked about sort of Q3, back half of the year. Is there any update that you can share about how that's going? And then when we should be looking at onboarding of patients, and then that's in resulting revenues that we can expect from that channel?
Geoffrey Benic
Yes. So first of all, it's really, really exciting to see just in the last few days, the first patient signing up through this program. So we expect Unifor program to provide incremental revenue in Q2, and gradually pick up steam in the back half of the year. So we are very -- sorry, and we are also in very, very deep discussions with other large employers, particularly in the automotive sector. And hopefully, they expand our offering to them this year. As we said in our earnings call today, I alluded to it, is that we have Ford Canada now. And so not only the qualifying Ford Canada employees, but their qualifying household members as well. So we're excited about that. And we're going to be working hard to continue to throughput them, get them on our platform, get them the medicine that they need through the coverage that they deserve. And through the insured coverage, we're really excited about this role.
Operator
And there are no further questions at this time. Ladies and gentlemen, thank you for participating in today's conference. You may now disconnect.
Ya, I saw that. I do not want to bail on it if they are just shifting from wholesale to retail and off loading shuttered clinics to another company that would make a decent partnership. They increased their patient count by 7,000 too. Did anyone hear the conference call? Is there a link to the recording?
Nobody's talking about this part - Repayment of $25.0 million of convertible debt reduces the Company's total debt by 43%
Anybody able to make sense of this? Their wholesale prices got crushed, then they say they gained patients and had higher sales yet the numbers suck in all categories. Is it just the expected price compression of the commodity? We saw that in Oregon as the market adjusted. This is certainly a pivotal moment for sure, I just hope they do not pivot in to the dumpster.
TORONTO, May 11, May 11, 2021 (GLOBE NEWSWIRE via COMTEX News Network) -- Aleafia Health Inc. (TSX: AH, OTCQX: ALEAF) ("Aleafia Health" or the "Company") is pleased to report its financial results for the three months ended March 31, 2021 ("Q1 2021").
"This quarter saw us achieve important executional breakthroughs as we realized the exponential increase of our cannabis product portfolio. Likewise, as we benefit from greater scale, we are demonstrating substantial improvements in the profitability of our core adult-use and medical cannabis product sales, contrasting with the broader industry trend of price and margin compression," said Aleafia Health CEO Geoffrey Benic.
"To further leverage product portfolio expansion, we have only just begun the deployment of our highly differentiated medical cannabis ecosystem through the trailblazing exclusive agreement with Unifor, Canada's largest private sector union. The ability to service a captive audience of union members who receive insurance coverage for medical cannabis is an important catalyst. We believe that this sets the table for a strong 2021, driven by repeatable, profitable sales in the medical, adult-use and international markets."
Condensed Income (Loss) Statement
($,000s) Three months ended
Mar 31, 2021 Mar 31, 2020
Net revenue 7,066 14,596
Cannabis net revenue 6,245 13,726
Adjusted gross profit before fair value ("FV") adjustments on net cannabis revenue 3,702 11,674
Adjusted gross margin before FV adjustments on net cannabis revenue 59% 85%
Selling, general & administrative expenses ("SG&A") 8,350 6,104
Gross profit 2,364 5,857
Adjusted EBITDA (3,033) 6,762
Net loss (11,248) (6,156)
1. See "Cautionary Statements Regarding Certain non-IFRS Measures" section of associated MD&A for term definition.
2. See "Adjusted EBITDA" section of associated MD&A for reconciliation to IFRS equivalent.
3. See "Revenue" section of associated MD&A for reconciliation to IFRS equivalent.
Cannabis Operational Results
($,000s, except operational results) Three months ended
Mar 31, 2021 Mar 31, 2020 % change
Cannabis net revenue 6,245 13,726 (55%)
Net medical cannabis revenue 2,657 1,365 95%
Net adult-use cannabis revenue 1,722 709 143%
Net bulk wholesale cannabis revenue 1,866 11,653 (84%)
Operational Results - Cannabis
Active, registered patients 17,637 10,983 61%
Average net selling price per gram of medical cannabis $8.46 $8.04 5%
Average net selling price per gram of adult-use cannabis $4.89 $6.88 (29%)
Average net selling price per gram of bulk wholesale cannabis $0.75 $2.47 (70%)
Kilograms sold 3,155 4,992 (37%)
1. See "Cautionary Statements Regarding Certain non-IFRS Measures" section of associated MD&A for term definition.
2. See "Revenue" section of associated MD&A for reconciliation to IFRS equivalent.
Financial Highlights
-- Medical cannabis net revenue was $2.7 million, an increase of 95% over the prior year's quarter, in line with the previous quarter, and the Company's best Canadian medical cannabis revenue reported to date. -- Active registered patients increased to 17,637, an increase of 61% over the prior year's quarter
-- Active registered patients increased to 17,637, an increase of 61% over the prior year's quarter
-- Medical cannabis adjusted gross margin before FV adjustments improved for the second consecutive quarter to 53%
-- Revenue per gram equivalent sold improved for the fourth consecutive quarter to $8.46
-- Adult-use cannabis net revenue was $1.7 million, an increase of 22% and 143% over the previous quarter and prior year's quarter respectively -- Adult-use cannabis adjusted gross margin before FV adjustments improved substantially to 56%, from 31% and 30% in the previous quarter and prior year's quarter respectively
-- Adult-use cannabis adjusted gross margin before FV adjustments improved substantially to 56%, from 31% and 30% in the previous quarter and prior year's quarter respectively
-- Adult-use cannabis revenue in the first 41 days of Q2 2021 has surpassed total adult-use cannabis revenue for Q1 2021
-- As previously disclosed in the Company's fiscal year 2020 MD&A, domestic wholesale was expected to decline, relative to Q4 2020.
-- Repayment of $25.0 million of convertible debt reduces the Company's total debt by 43%
Product & Operational Highlights
-- Sublingual Strips: The category leading Kin Slips cannabis-infused sublingual strips, launched in Q4 2020 in the medical and adult-use markets. Driven by strong consumer demand, Kin Slips were the Company's top-selling adult-use product category during the quarter, and a key driver of improved adult-use adjusted gross margin.
-- Omega CBD Soft Gels: Subsequent to the reporting period, the Company launched the trailblazing Omega CBD Soft Gels, which feature full-spectrum, single strain CBD extract, and are the first Canadian cannabis products to be suspended in fish oil containing omega-3.
-- Confectionary Edibles: In March 2021, the Company released THC soft chews, its first cannabis edible product. The initial launch features two SKUs, each with two five milligram chews per package. The Company is currently considering a soft chews line extension to include additional flavours, and a CBD dominant offering.
-- High Potency CBD Oil: In December, the Company launched a high potency cannabis oil, CBD 50, with 50 mg per millilitre of CBD oil, provides greater consumer and patient convenience and has more than twice the potency of traditional high CBD oils.
-- Dried Flower at Scale: Subsequent to the reporting period, leveraging the greater scale of cultivation capacity, the Company launched its high frequency brand Divvy, with new larger format SKUs, including a pre-roll line extension with 12 pre-rolls each of 0.35 grams.
-- Unifor Program and Ford Motor Company of Canada: Entered into an exclusive 10-year agreement with Unifor, Canada's largest private sector union, to support members securing medical cannabis insurance coverage. Recently, the Company launched the program to employees of the Ford Motor Company of Canada, with the first patients entering the program in May 2021 and purchasing cannabis through Aleafia Health's medical subsidiary, Emblem Cannabis Corporation. The Company is also in discussions with a number of other large employers to offer similar cannabis wellness products and services to their members through insurance coverage.
-- Distribution Centre Licence: On February 12, 2021, Emblem received a Health Canada Processing Licence for its new Distribution Centre. Located minutes from Toronto Pearson International Airport, the DC greatly strengthens the Company's downstream supply chain, allowing for expansion of same day delivery service, and eventual direct-to-retailer cannabis distribution.
Conference Call & Webcast
Date: May 11, 2021
Time: 8:30 a.m. EST
USA/Canada Toll-Free Participant Call-in: (866) 679-9046; Passcode: 3486978
International Toll-Free Participant Call-in: (409) 217-8323; Passcode: 3486978
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:
Do you guys think they are done as a company?
Well that sucks. I'm headed out for awhile too.
Disaster--->>>Aleafia Health reports Q1 results
Golfing today so I will miss the chance to buy in the 20's. - FUNMAN
See the numbers here:
https://seekingalpha.com/pr/18311215-aleafia-health-reports-2021-first-quarter-results
I think that bodes well. We shall see
Aleafia Health to Present at Canaccord Genuity's Global Cannabis
I don't have an answer for you, but the PPS is likely to react on the news because this conference is timely. - FUNMAN
Any bets as to what financials will be tomorrow?
Thanks Funman.
I found it very confusing it as well
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