The TSX Venture Exchange’s 2019 top performing Company of the year has just been given the green light for enough additional growing space to move it to sit among the giants of the industry, in terms of growing space.
Aleafia Farms Inc., a wholly-owned subsidiary of Aleafia Health Inc. (TSX: ALEF, OTCQB: ALEAF, Forum) recently announced that it has secured a License Amendment for its entire 1.1 million sq. ft. outdoor growing facility in Port Perry, Ontario. ALEF’s previous license had covered only 292,000 sq. ft.
This is comparable to facility capacities boasted by the likes of Canopy Growth Corp. (NYSE: CGC) (2.4 million sq. ft. in BC), as well as Aurora Cannabis Inc.’s (TSX: ACB, NYSE: ACB)’s AuroraSun (1.2 million sq. ft.) and AuroraNordic (1 million sq. ft.) operations.
With the build-out of Aleafia’s Port Perry operation, the intent is that all the cannabis grown at this outdoor facility will be processed at the Company’s facility in nearby Paris, Ontario. There it will see the extraction and production of high-margin products within a closed loop ecosystem. Using approximately 7,000 cannabis plants currently growing in pots in Zone 1, the Company expects to begin planting in the newly licensed area by mid July 2019. The experienced cultivation team assembled by Aleafia’s leadership will oversee this outdoor grow operation. Together the team has led the build-out and operations of seven cannabis cultivation facilities.
It was in June 2019 that Aleafia Farms received approval for cultivation in Zone 1 of its outdoor grow facility. Days later, the Company completed its planting of the first legal, large-scale outdoor crop in Canada. This new License now adds Zones 2, 3 and 4 which encompasses the full 1.1 million sq. ft. cultivation area.
(Image via Aleafia Heath Inc. A small number of the 7,000 cannabis plants growing in pots which will be transferred to the newly licensed cultivation area.)
In a news release, Aleafia Chairman Julian Fantino called this four-fold spatial increase the Company’s most significant milestone to date. While CEO Geoffrey Benic noted for investors that plants were in the ground within one business day of receiving their new Health Canada license.
“We plan to benefit from the increasing scale of our production operations across three facilities. Low-cost cannabis grown at Port Perry will accelerate and scale our mission of growing, producing and selling high-margin value-added cannabis health and wellness products globally.”
The License is effective immediately and expires on October 13th, 2020.
Through its subsidiaries, Aleafia Health owns three major cannabis product & cultivation facilities, two of which are licensed and operational. This expanse in operational capacity is expected to enhance the Company’s national network of medical cannabis clinics and educational centres, which is already the largest in the country and staffed by MDs, nurse practitioners as well as educators. Through its vertically integrated business, ALEF maintains a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays.
Aleafia Health can leverage even more low-cost production at its Port Perry facility under this new License, coupled with greater processing yields at its Paris facility. Combined, this means stronger distribution to its medical patients locally, and further to
Australia via its export agreement with LP CannaPacific Pty, as well as
Germany through its joint venture with Acnos Pharma GmbH. ALEF can now bolster its position even further as a leading vertically integrated health and wellness Company in the medical cannabis space.
FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.