Among those stocks that really started to perform to close out last week, Aleafia Health Inc (OTCMKTS:ALEAF) is a clear prime example. Shares of the stock ramped as much as 21% in the final two days of the week as buying pressure appeared and lit a fire under the company’s shares. Helping to color the narrative, the company just announced that it will add 50,000 kg of extraction capacity with the Phase II expansion of the Company’s processing facility in Paris, ON.
According to the release, “the expansion will, when operational, see the Company’s products and cultivation division, Aleafia Campus, maintain robust combined extraction and cultivation footprints across three facilities. The facility has now secured a partial occupancy permit from the local government, marking the completion of an important milestone in the Phase II build-out which it expects to complete in Q3 2019. Aleafia Health will submit a Licence Amendment application to Health Canada, and will additionally require the final municipal occupancy permit prior to the operationalization of the site.”
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 that it will add 50,000 kg of extraction capacity with the Phase II expansion of the Company’s processing facility in Paris, ON.
Traders will note 6% tacked on to share pricing for the listing in the past week. In addition, the stock has registered increased average transaction volume recently, with the past month seeing 22% above the average volume levels in play in this stock over the longer term.
“In the medium term, a robust, wholly-owned cultivation footprint is vital with ongoing supply shortages,” said Aleafia Health CEO Geoffrey Benic. “However, the inevitable commoditization of cannabis will reward companies excelling at product innovation, brand-building and supply chain logistics. Our major extraction expansion will see Aleafia Health doing just that.”
Earning a current market cap value of $368.73M, ALEAF has a significant war chest ($22.8M) of cash on the books, which must be weighed relative to 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%. As more color becomes clear on the name, we will review the situation and update our take. 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.