Aleafia Health (AH) has received a license for its new distribution centre in Toronto.
The company's wholly owned subsidiary Emblem Cannabis Corporation received a Health Canada Processing Licence.
The move expands Aleafia's existing supply chain.
The distribution is located a short distance away from Toronto's Pearson International Airport, a move that allows for "immediate expansion of same day delivery service, and eventual direct-to-retailer cannabis distribution," according to the company.
The company launched its AssureHome Delivery service in the Greater Toronto Area in April 2020. The company says the distribution centre will help it expand the same-day delivery service.
"COVID-19 has resulted in a rapid expansion in ecommerce, coupled with greater demand for same-day delivery. Yet while supply chain logistics is among the most important cannabis industry competencies, it is also the least developed. We plan to capitalize on this through a continued expansion of our AssureHome Delivery platform, which allows us to offer our customers and patients what they want, when they want it," said Aleafia Health CEO Geoffrey Benic.
The licence was granted on February 12, 2021, expires on February 12, 2024, and authorizes cannabis storage and the fulfilment of orders to other licence holders, medical patients, adult-use provincial wholesalers and international customers.
Aleafia Health is down 13.68 per cent on the day, with shares trading at C$0.82 at 11:31 a.m. EST.