News Update from Alefia !! Here we Grow $$$$Aleafia Health Provides Update on Strategic Growth Initiatives Friday, July 10, 2020, 8:00 AM ET Aleafia Health Provides Update on Strategic Growth Initiatives TORONTO, July 10, 2020 (GLOBE NEWSWIRE) -- Aleafia Health Inc. (TSX: AH) (OTC: ALEAF) ("Aleafia Health" or the "Company"), a global cannabis health and wellness company, is pleased to provide a corporate update on strategic growth initiatives. "Commencing the production of our first Cannabis 2.0 product formats represents a major milestone for Aleafia Health, as we scale our business," said Aleafia Health CEO Geoffrey Benic. "Likewise, a successful outdoor planting and the ramp-up of our Niagara Facility provides us with a diversified production ecosystem that allows us to expand our distribution in Canada, through new provinces and globally." -- Expanding Product Portfolio with Cannabis 2.0: The Company is nearing the launch of new Cannabis 2.0 products to broaden its product portfolio in both the medical and adult-use markets. Following quality assurance testing of formulations and packaging design, the first production run of Kin Slips, the award-winning, cannabis infused sublingual strips, is expected to commence this month. The category market leader in California, Kin Slips provides health and wellness conscious consumers with a consistent, smoke-free cannabis experience, with formulas targeting specific need states, and an expected onset of 10-15 minutes. The Company also expects to commence the sale of universal 510 vape cartridges in the next two to three months, followed by confectionery edibles in the form of soft chews & lozenges, and other new formats. -- Growth in Registered Patients: At June 30, 2020, active, registered patients with the Company's wholly owned subsidiary, Emblem Cannabis Corporation ("Emblem"), increased to 13,285, from 10,983 patients at March 31, 2020. During Covid-19, the Company has continued to improve and scale its contactless, patient ecosystem. Patients are able to see their physician virtually, order products and have them delivered to their home in the same day, utilizing the direct-to-door AssureHome Delivery (where locally available) offered exclusively to Emblem patients. -- Completion of Outdoor Planting: Planting at the Port Perry outdoor cultivation site is completed, utilizing the entire crop of starter plants originally propagated at the Niagara Facility. The Company expects to benefit from a significantly larger cultivation footprint along with improved infrastructure relative to the 2019 season. The site now has 66 fully planted acres, relative to 13 acres planted in 2019. Drying and irrigation infrastructure, a critical component of outdoor cultivation, has also significantly scaled up. Construction of an additional 30,000 sq. ft. of indoor drying and storage buildings and site-wide underground irrigation has been completed. In 2019, the Company produced 12,747 kgs of outdoor dried flower at an all-in cash cost to harvest of $0.10 per gram. -- Niagara Greenhouse Scaling Up: Upon licensing in March, the Niagara Facility was primarily utilized for the propagation of starter plants destined for the Port Perry outdoor cultivation site. Since the completion of the outdoor propagation crop, the Niagara Facility is now being used for normal course cannabis production, with the first of what will be perpetual, daily harvests expected in approximately eight weeks. The Niagara Facility provides the Company with a stable, consistent inventory of high-quality dried flower products