Aleafia Health trades in red on Q3 widening loss
Nov. 11, 2020 10:28 AM ET|About: Aleafia Health Inc. (ALEAF)|By: Khyathi Dalal, SA News Editor
Aleafia Health (OTCQX:ALEAF -6.9%) plunged in trade after reporting a Q3 net loss of $19.8M vs. $1.86M net income in year ago quarter; adj. EBITDA stood at -$5.65M vs. -$2.5M earlier.
• Net revenue was relatively flat at $4.97M vs. $4.96M in year ago quarter.
• "With respect to the most recent quarter, the successful sale of our entire 2019 outdoor crop was completed earlier in the year, which led to a significant sequential decline in cannabis revenue, due to lack of available product. This was coupled with a number of significant product launches that only began generating revenue following the end of the reporting period," CEO Geoffrey Benic commented.
• The company has contracted sales, that will, upon completion of shipments, generate net revenue of $16M; majority of the domestic wholesale shipments will be completed in Q4, with the remainder shipping to customers early in 1Q21.
• In Q3, the company reported 32% sequential increase in active, registered patients.
• Currently, the company is in the process of fulfilling it's largest international order via medical cannabis shipments to Australian strategic partner CannaPacific; purchase orders are expected to ship in Q4 or 1Q21.
• Mr. Benic further added that the company expects to report the strongest Q4 led by significant sequential growth in medical, adult-use, wholesale and international cannabis sales; introduction of vape cartridges, sublingual strips, and with many more launches to come, the commercialization of our business at scale is truly in full swing.
• In Q4, the company will report its first cannabis sales within Germany; sales of the company's strips, Kin Slips, will commence to medical patients in November 2020.
