A new leader in the cannabis market place.
That was the mission behind a transformative transaction between two Venture Exchange companies, and now we are seeing the fruits of this labour pay off.
Vertically-integrated cannabis health and wellness Company Aleafia Health Inc. (TSX: ALEF, OTCQX: ALEAF, Forum) has received its approval from the Toronto Stock Exchange to graduate from the Toronto Venture Exchange and list its common shares on the TSX under the symbol ALEF.
This massive step to a higher profile and liquidity began with its move to acquire Emblem Corp. (TSXV: EMC, OTCQX: EMMBF), which closed earlier in March 2019 and established many benefits for both companies as well as patients:
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A Canadian medical cannabis clinic and education centre network (40 clinics, 60,000 patients seen to date)
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A product portfolio of oils, capsules and sprays
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Scaled production capacity and leading supply with three dedicated cultivation and product innovation facilities and the industry’s largest LP to LP cannabis supply agreement
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A national and global distribution platform with provincial supply agreements, retail partnerships and a global expansion
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A combined entity with a robust cash position (roughly $70 million)
As a national cannabis operation on the verge of going international, Aleafia Health maintains the largest medical cannabis dataset, globally and has significantly monetized that data. It operates clinics staffed by physicians and nurse practitioners, with more than 60,000 patients.
The transaction was valued at more than $173 million at the onset of the deal back in December 2018. Emblem, a fully-integrated cannabis company in its own right, brought product leadership in the medical and adult-use sectors to the table.
These supply agreements are an ideal fit for Aleafia Health’s cannabis production and clinic operations. Together, they become a major force in the industry with a potentially global reach, especially as other countries legalize medical and recreational cannabis.
The TSX welcoming the Company into the fold legitimizes this and means that institutional investors are feeling more and more comfortable investing in the space, which is a shift from the typical retail and hedge fund activity.
In a news release, Aleafia Health Chairman Julian Fantino also noted that the rapidly maturing cannabis industry is also attracting greater interest from institutional investors.
“A TSX listing will form an important element of the Aleafia Health story as we aim to broaden our shareholder base.”
Aleafia Health CEO Geoffrey Benic added that graduating to one of the world’s largest stock exchanges is a major milestone for the Company.
“Coming off the heels of our recent recognition as the top-performing Company of the yearon the entire TSXV, this achievement further demonstrates our executional capabilities and will enable us to address an even wider investor audience, both domestically and internationally.”
Aleafia Health has a planned and fully-funded annual production capacity of 138,000 kg of dried cannabis flower. This could put the Company within the top 10 of North American LPs, an elite gathering that includes the likes of heavy-hitters such as: Aphria Inc. (TSX: APHA, NYSE: APHA), Aurora Cannabis Inc. (TSX: ACB, NYSE: ACB) and Canopy Growth Corporation (TSX: WEED, NYSE: CGC).
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.