Why Aleafia Health Inc (OTCMKTS:ALEAF) May Be Sitting Pretty

Why Aleafia Health Inc (OTCMKTS:ALEAF) May Be Sitting Pretty


After holding key support in the critical $1.60/share zone, Aleafia Health Inc (OTCMKTS:ALEAF) shares broke higher on Tuesday on a sharp increase in trading volume. This is an obviously promising posture for the stock right now. The action appears to have been aided by the company’s announcement of the results of a 4,000 medical cannabis patient study examining changes in employment and disability status among medical cannabis patients.

According to the release, “the study was published on March 13, 2019 in the peer-reviewed Journal of Drug Issues, and is, to the Company and author’s knowledge, the first to ever directly observe physician-led medical cannabis usage and labor force status over time. The Study found a mild net improvement in employment after starting medical cannabis treatment, along with a reduction in unemployment and self-identified disability preventing employment. This is particularly notable as the vast majority of patients reported suffering from chronic illnesses, including pain, anxiety and depression, conditions which research indicates would ordinarily lead to a decrease in employment and labor force participation. Epileptic patients were the most likely to see improvements in their labor status.”

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 the results of a 4,000 medical cannabis patient study examining changes in employment and disability status among medical cannabis patients.

Recent action has seen 7% piled on for shareholders of the listing during the trailing week. Furthermore, the listing has seen interest climb, with an increase in recent trading volume of 25% above its longer-run average levels.

“These findings serve both to motivate further medical research into the interactions of cannabis with a variety of medical conditions and pharmaceutical therapies, while also contributing to the public health debate over cannabis,” said study author Dr. Andrew Davis. “The improvement in the employment prospects of epileptic patients is particularly encouraging and merits further investigation by medical professionals. I would caution that only patients undergoing physician-led medical cannabis treatment were monitored, not individuals using cannabis recreationally or self-medicating.”

At this time, carrying a capital value in the market of $286.2M, ALEAF has a significant war chest ($22.8M) of cash on the books, which is balanced by 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%. This may be a very interesting story and we will look forward to updating it again soon. 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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