Another Growth Catalyst for Aleafia Health Inc (OTCMKTS:ALEAF)

Another Growth Catalyst for Aleafia Health Inc (OTCMKTS:ALEAF)


Shares of Aleafia Health Inc (OTCMKTS:ALEAF) have been storming higher in recent action, quickly regaining ground lost in Q4 trading, rallying as much as 120% in recent weeks following the establishment of support in the $0.90/share area in December. Helping to define the narrative, the company just announced what it believes to be the first study reporting reduced benzodiazepine use among patients initiated and monitored on medical cannabis.

According to the release, “Benzodiazepines, a class of psychoactive drugs, include the most common sedatives and anti-anxiety medications. The retrospective study, published in Cannabis and Cannabinoid Research, a peer-reviewed journal, is entitled “Reduction of Benzodiazepine Use in Patients Prescribed Medical Cannabis.” It found that 45.2 percent of patients regularly consuming benzodiazepines had stopped taking the medication within approximately six months of beginning medical cannabis. These patients, following prescription cannabis use, also reported decreased daily distress due to medical conditions.”

Aleafia Health Inc (OTCMKTS:ALEAF) bills itself as a company that owns and operates a healthcare clinic that provides medical cannabis therapy to achieve optimum recovery and minimize illness and injury’s cumulative effects. The company provides medical cannabis therapy, pain management, physiotherapy, chiropractor, osteopathy, registered massage therapy, laser therapy, orthotics, and custom braces and compression socks. It provides consulting and support services for managing cannabis-sensitive cases.

The company assists rehabilitation professionals, case managers, social workers, life care planners, psychologists, family physicians, physiotherapists, litigators, and third-party insurance companies. Aleafia Inc. is based in Concord, Canada.

According to company materials, “Aleafia is a leading, vertically integrated medical cannabis company with a unique focus on delivering quality patient care from “seed” to “sale.” Aleafia is uniquely positioned with a singular focus on the medical cannabis market. The company operates the largest brick and mortar medicinal cannabis clinic network in Canada under the Canabo Medical Clinic brand, which is staffed by licensed, practicing physicians. Aleafia has obtained over 50,000 unique patients and maintains the largest medical cannabis patient data set in Canada. Aleafia’s state of the art production facilities will allow for the production of high-quality strains at low cost. Aleafia’s production will focus on securing the highest-quality medicinal product for its growing patient base.”

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As noted above, ALEAF just announced what it believes to be the first study reporting reduced benzodiazepine use among patients initiated and monitored on medical cannabis.

The chart shows 89% tacked on to share pricing for the name in the past month. What’s more, the company has witnessed a pop in interest, as transaction volume levels have recently pushed greater than 160% beyond its prior sustained average level.

“The study results are encouraging, and this work is concurrent with growing public interest in a rapidly developing Canadian cannabis market,” said lead author Chad Purcell. “We are advising the public to observe caution. The results do not suggest that cannabis should be used an alternative to conventional therapies. Our purpose is inspiring others to advance current cannabis understanding as we collect stronger efficacy and safety data that will lead to responsible policy and recommended practices for use.”

Earning a current market cap value of $303.91M, ALEAF has a significant war chest ($22.8M) of cash on the books, which stands against about $1.8M in total current liabilities. ALEAF is pulling in trailing 12-month revenues of $4.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 79.5%. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $ALEAF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $ALEAF, either long or short, and we have not been compensated for this article.

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