Aleafia Health Inc ALEAF

Aleafia Health Provides Guidance for Profitable Third Quarte

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Aleafia Health Provides Guidance for Profitable Third Quarter 2019

• Company maintains strong balance sheet with $51 million in cash on hand
• Construction of Paris Phase II Processing facility expected to be completed in October 2019
• Active, registered patients increased to over 10,000, a 42% increase since July
• Products grown, extracted and exported by Aleafia Health now available to patients in Australia

TORONTO, September 24, 2019 – Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH) (“Aleafia Health” or the “Company”) is pleased to provide guidance anticipating the Company will achieve positive net income for the three month period ended September 30, 2019. 

“Through prudent capital allocation, coupled with strong cannabis revenue growth, we now expect to deliver the first profitable quarter in Aleafia Health’s history, a major milestone. This will mark our second consecutive quarter featuring both substantial expense reductions and increased revenues as we continue to drive towards sustainable, compliant growth that will deliver real benefits to our stakeholders,” said Aleafia Health CEO Geoffrey Benic. 

“Aleafia Health is now transitioning to a new phase of our growth story. We have, until now been executing on major capital projects which are now either finished or weeks away from completion. With a strong cash position, we are extremely well positioned to build on the growth experienced this quarter on a much greater scale.” 

The Company also maintains a strong balance sheet with an estimated $51 million in cash on hand.
PRODUCTION UPDATE
Port Perry Outdoor Grow facility Phase I: Harvesting is expected to commence at the licensed, operational 1.1 million sq. ft. outdoor cultivation facility in the next two weeks. WATCH: Aerial Video of Port Perry.

Port Perry Outdoor Grow Phase II Expansion: Security and cultivation infrastructure at the 2.6 million sq. ft. expansion is expected to be completed in November 2019. 

Niagara Greenhouse: The Niagara Greenhouse Phase I remains in a grow-ready state pending receipt of a Health Canada Cultivation Licence. Remaining retrofitting is limited to two final growing rooms in the facility’s Phase II portion, which are expected to be completed in October 2019. All other non-cultivation infrastructure including trimming & drying room, shipping, and disposal areas are entirely complete. PHOTOS: Niagara Greenhouse Tour.
REVENUE GROWTH
Paris Processing facility Phase II Expansion: The construction of the Phase II expansion is expected to be completed in October 2019. As part of the Licence Amendment application, a site evidence package demonstrating that the facility is operationally-ready will be submitted to Health Canada. The facility is being purpose-built to EU GMP standards, a highly differentiated feature that will allow for export of cannabis products to the EU market. 

Growth of Registered Patient base: Today, the Company now has over 10,000 active, registered medical cannabis patients, an increase of over 3,000 patients or 42 per cent over July 2019. Leveraging the Company’s integrated cannabis health and wellness ecosystem, Aleafia Health is well positioned to capture further market share

First Australian Medical Patients: Medical cannabis oils, grown, extracted, packaged and exported by Aleafia Health are now available to patients in Australia through our strategic partnership with Australian Licensed Producer CannaPacific. Additionally, the first prescription from a physician for an Aleafia Health product was written earlier this month. 
REVOCATION OF SHARE CONSOLIDATION RESOLUTION
In addition, at a meeting of the board of directors of the Company held on September 23, 2019, the board approved the revocation of the December 6, 2018 special resolution of shareholders that authorized the board to complete a share consolidation on the basis of one post-consolidation share for up to every four common shares currently issued and outstanding. As a result of the revocation of this resolution, the Share Consolidation will no longer proceed.