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Aleafia produces 10,300 kg pot in outdoor harvest
2019-11-11 08:19 ET - News Release
Mr. Geoffrey Benic reports
ALEAFIA HEALTH OUTDOOR HARVEST YIELDS 10,300 KG OF DRIED FLOWER AT $0.08 COST PER GRAM
Aleafia Health Inc.'s Aleafia Farms Inc., its wholly owned subsidiary, has produced an inaugural Port Perry outdoor grow harvest yielding approximately 10,300 kilograms of dried flower. The yield figure is limited to dried flower, and excludes stems or other parts of the cannabis plant.
"Today, we can definitively say that Aleafia Health is among the lowest-cost producers, while realizing close to the highest revenue per gram sold among our peers as demonstrated in our upcoming third quarter financial results," said Aleafia Health CEO Geoffrey Benic. "Low-cost production will only strengthen our core business model of growing, producing, selling and exporting high-quality, value-added cannabis health and wellness products globally."
2019 OUTDOOR HARVEST HIGHLIGHTS
- 10,300 kg of dried flower harvested;
- 1,000 kg per acre yield in Zone 1, which was planted in June 2019;
- $0.08 cash cost per gram to harvest (unaudited);
- $0.10 all-in cash cost per gram to harvest, including facility capital costs (five-year amortization) (unaudited);
- Cannabinoid content (THC and CBD per gram) of harvested flower was strong, at levels near to the cannabinoid content in identical strains harvested indoor;
- Quality assurance testing to date is successful, including for microbial content, pesticides and contaminants.
"Our inaugural 2019 outdoor harvest was successful due to the commitment and capabilities of our team. I'd like to thank our on-site growers who navigated the challenging environment of starting the cultivation season late into the year and ultimately delivered an excellent harvest that we are measuring in tons," said SVP of Production Lucas Escott.
Total yield and 2020 projected yield figures are approximations. Cash cost per gram to harvest includes all operating expenses such as labour, supplies, consumables, services and staff overhead. All-in cash cost per gram to harvest includes all operating expenses, along with capital costs including irrigation, security infrastructure and the newly constructed Drying Facility.
As previously announced, Health Canada amended Aleafia Farms' license to add Zone 1 to the site on June 7, 2019, with planting completed by Aleafia Farms within one week. Health Canada amended Aleafia Farms' license to add Zone 2 to the site on July 12, 2019, with planting completed by Aleafia Farms over the last two weeks of July. The six acre Zone 1, benefiting from an earlier planting date, yielded 1,000 kg per acre.
Based on the 2019 results, the Company estimates that it can produce 1,200 kg per acre for a total of 102,000 kg of dried flower in 2020 at its expanded 3.7 million sq. ft. (86 acre) outdoor site, at full capacity. The modest increase in the expected yield per acre for 2020 is due a number of factors which should improve the overall outdoor grow operation, including commencing cultivation several weeks earlier relative to 2019.
The entire harvest was dried and cured on-site at the Company's newly constructed and Health Canada-licensed Drying Building. The building comprises approximately 5,000 sq. ft. and features a 20 ft. high ceiling and a purpose-built climate control and dehumidification system to maximize throughput efficiency.
3.7M SQ. FT. OUTDOOR GROW PHASE II EXPANSION NEARING COMPLETION
On September 4, 2019, the Company announced that Aleafia Farms had acquired the farmland directly adjacent to its Port Perry facility, for a cash purchase price of $1.2 million. The expansion adds an additional 2.6 million sq. ft. (60 acres) of cultivation area, for a total of 3.7 million sq. ft (86 acres). Fencing and much of the security infrastructure at the expanded site has been completed and the Company expects to formally submit its Licence Amendment application in 2019.
About Aleafia Health:
Aleafia Health is a leading, vertically integrated cannabis health and wellness company with four primary business units: Cannabis Cultivation & Products, Health & Wellness Clinics, Cannabis Education, and Consumer Experience with ecommerce, retail distribution and provincial supply agreements.
Aleafia Health owns three major cannabis product & cultivation facilities, two of which are licensed and operational including the first large-scale, operational 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.
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