Replies to post #1990 on Aleafia Health Inc. (ALEAF)

[FUNMAN]

Aleafia crushes the industry "All-in" cost of sales of dried cannabis.

Copied below is some of this morning's data from Aphria with a 19x higher cost of goods than Aleafia. As Niagra ramps up, Aleafia's costs will rise too, but nowhere near Aphria's levels. Thank heavens Aleafia got out of that Aphria supply agreement with a windfall cash hoard "reward".



Nice to see Aphria's EBITDA going in the right direction. It bodes well for the entire cannabis industry.

Distribution revenue is nothing to brag about. LP's need foreign markets to grow and America to legalize. Canada alone is not enough. USA MSOs are selling more.

Aleafia with it's retail network is well positioned; better than most LPs. In some ways they are following the USA MSO models.

""All-in" cost of sales of dried cannabis"" is better than some, but nowhere near Aleafia's industry low.

The differential of Kilogram equivalents sold vs produced is just ridiculous from a cost containment point of view. Imagine if it were right sized? It will be interesting to follow that with Aleafia given the massive production uptick coming on line this year.

The premarket reaction to Aphria's PPS is what I feared during the prior two day run-up ... Last Trade / $5.51 Change Since Close -0.49 (-8.17%) July 29, 2020 8:39am ET

I hope we don't witness a running for the hills ... again.

A key to watch is how the cannabis industry reacts overall?

IMO, the LPs will take it on the chin today.

Will it affect recent exuberance of USA MSO's too? I hope not. It's an apples and oranges comparison. The prospects of a dem sweep will drive the hopes of MSO revenue increases.

Canadian LPs positioned to take advantage of USA legalization will be clear winners. Aphria and other with huge war chests will pounce. I wonder if Aleafia has contingency plans? - FUNMAN



From Management’s Discussion & Analysis page 14

.......................................... YE - 2020 / Q4 - 2020 / Q3 - 2020

Distribution revenue /$ 369,214 / $ 99,137 / $ 88,308

Kilogram equivalents sold / 39,602.4 / 12,556.5 / 14,014.1
Kilograms produced, net / 107,776.1 / 52,242.6 / 31,086.1


"All-in" cost of sales of dried cannabis / gram / $ 1.90 / $ 1.69 / $ 1.69


Adjusted EBITDA from cannabis operations / $ 20,106 / $ 9,360 / $ 6,031