TORONTO, Feb. 02, 2021 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSX: AH, OTC: ALEAF) (“Aleafia Health” or the “Company”) today announced the full repayment in cash of its 8% unsecured convertible debt (the “Convertible Debt”), which matured on February 2, 2021. Emblem Corp., which issued the Convertible Debt on February 2, 2018, was acquired by the Company on March 14, 2019.
“Our team is excited to see continued cannabis sales growth in 2021, driven by new products launched late last year,” said Aleafia Health CEO Geoffrey Benic. “The adult-use, medical and international cannabis markets are the pillars of our 2021 growth strategy, and we look forward to capitalizing on this global opportunity through the continued expansion of our cannabis product portfolio.”
Building on record cannabis net revenue realized in the quarter ended December 31, 2020 (“Q4 2020”), the Company is pleased to report on additional near term growth opportunities across the medical, adult-use, and international sales channels.
Medical Cannabis: Q4 2020 represents Aleafia Health’s best medical cannabis sales quarter to date. The Company expects to continue this growth trajectory in 2021 with a more diverse product mix, expanded same-day delivery service which is critical during Covid-19, and through its strategic partnership with Unifor, Canada’s largest private sector union. In January, traditionally a month with slower demand, the Company observed its fourth consecutive monthly record for medical cannabis revenue.
Adult-use Cannabis: The Company’s adult-use market strategy, coupling an expanded product portfolio and dedicated sales team with deep cannabis experience, is now delivering promising results. In the first month of 2021, adult-use purchase orders have nearly surpassed the total order value in Q4 2020, driven in part by sales of an innovative product, Kin Slips® sublingual strips. Shipments to additional provincial markets are also expected to commence in the near term.
International Cannabis: Following the completion of its largest international cannabis shipment in Q4 2020, the Company has entered into supply agreements with new strategic partners in the European Union and Israel, significantly expanding international cannabis sales. Purchase orders for both markets, and a new order from Australia, are being processed, with timing of delivery dependent on the receipt of necessary import and export permits.
Product & Brand Development: The launch of new product formats and a strengthening of core lines has substantially driven sales growth in early 2021. Further product development is also underway, with the near term launch of soft chews and new dried flower cultivars. Later this month, the Company plants to provide further details on a much broader expansion of its adult-use brand and product portfolio. This will be led by new brands tailored to specific consumer segments, each featuring novel and high-demand formats, aligned with the needs of Canadian consumers.
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About Aleafia Health:
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and in international markets. The Company operates medical clinics, education centres and production facilities for the production and sale of cannabis.
Aleafia Health owns three significant licensed cannabis production facilities, including the first large-scale, legal outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and operates internationally in three continents.
Innovation, the heart of Aleafia Health’s competitive advantage, has led to the Company maintaining a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value; the TSX Venture Exchange named Aleafia the 2019 top performing company prior to its graduation to the TSX.
Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “estimates”, “intends”, “anticipates”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.