ALEAF - Aleafia: Cheap Canadian Cannabis With Great Margins
Source: Aleafia.
Summary
Aleafia (ALEAF) is a Canadian cannabis company which reported very strong revenue growth (+146% sequentially), gross margins (83%), and adjusted EBITDA (44% adjusted EBITDA margins) in the first quarter. Despite that, I am staying on the sidelines.
Aleafia focuses on growing outdoor cannabis. In Canada, this cannabis tends to be cheap to produce but also lower quality. It is well-suited for vape carts and edibles, which are growing segments of the Canadian cannabis market. However, competition is increasing in this sector with Health Canada licensing twice as many outdoor growers