Has Aleafia Health Inc (OTCMKTS:ALEAF) Hit Bottom?

Has Aleafia Health Inc (OTCMKTS:ALEAF) Hit Bottom?

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One stock that really found its footing on Monday and Tuesday to the tune of about 27% over that span was Aleafia Health Inc (OTCMKTS:ALEAF). The action has been spiced up by the company’s announcement that it is entering the German medical cannabis market via its joint-venture with German pharmaceutical wholesaler Acnos Pharma GmbH.

According to the release, “The JV entity will purchase Aleafia Health branded cannabis oils for distribution to German pharmacies and for clinical trial usage. Aleafia Health’s wholly-owned subsidiary Emblem Cannabis Corp. is the majority shareholder of the JV with 60 per cent ownership with Acnos owning the remaining 40 per cent.”

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 is entering the German medical cannabis market via its joint-venture with German pharmaceutical wholesaler Acnos Pharma GmbH.

We’ve witnessed 4% during the past week in terms of shareholder gains in the name. Moreover, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 34% over the long run average.

“We are delighted to soon see the export of our cannabis health and wellness products to the world’s largest medical cannabis market in Germany,” said Aleafia Health Chairman Julian Fantino. “By leaning on our own core competencies of producing high-margin value added products and leveraging the local supply chain expertise of our outstanding partners, we have significantly strengthened our international footprint and done so faster and at a fraction of the cost of an acquisition.”

Now commanding a market cap of $334.55M, 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%. 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.

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