ALEAF - Aleafia Health Gets License Update for Edible Products
Aleafia Health (TSX:ALEF,OTCQX:ALEAF) said on Thursday (November 14) that it has obtained a critical license for its participation in the next phase of cannabis legalization in Canada, but it has not committed to a timeline for product availability.
The producer confirmed that Health Canada has approved two license amendments for the company at its facility in Paris, Ontario, allowing for the production and sale of new product formats.
Aleafia Health CEO Geoffrey Benic said the timing gives the company the ability to jumpstart production of the products, which are set to be introduced under Canada’s second stage of legalization.
Edible and infused cannabis products will become available in the country starting in mid-December as part of the federal government’s rollout plan.
Various marijuana producers have raced to make their products available on day one and to introduce consumers to their branded items.
In an email statement to the Investing News Network, Aleafia Health CFO Benjamin Ferdinand said the company had originally expected to produce its novelty products out of the second phase expansion of its Paris facility.
“However, with these license amendments, we are able to jumpstart this process, as we now have adequate, licensed processing space to produce new formats, including edibles and topicals,” he said.
The company wasn’t able to offer a proposed timeline for when its products might become available, but said an announcement to investors is incoming.
On Tuesday (November 12), Aleafia Health issued its Q3 earnings report, indicating a total revenue increase of 34 percent from the previous period, resulting in a C$5.3 million total. The company also reported net income of C$1.9 million following a loss of C$11.5 million during the previous quarter.
“We acquired the exclusive Canadian rights to a number of leading international cannabis brands, along with formulations and production techniques, while we have also long been developing our own formulations in-house,” said Ferdinand.
“With an accelerated timeline to bring new formats to market now available to us, we will look forward to announcing our plans for differentiated, health and wellness focused Cannabis 2.0 brands in the near future,” he continued.
Shares of the company stumbled following its quarterly results by 12.35 percent, representing a loss per share of C$0.10. At the end of trading on Thursday, the company was valued at C$0.70 per share.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.