TORONTO – Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH) (“Aleafia Health” or the “Company”)’s wholly owned subsidiary, Aleafia Farms Inc., has acquired the farmland directly adjacent to its Port Perry Outdoor Grow facility. The purchase will allow the Company to commence its Outdoor Grow Phase II expansion, adding an additional 60 acres of cannabis cultivation area, for a total of 86 acres. The transaction closed on September 3, 2019, with a cash purchase price of $1.2 million.
Following closing, the Company will commence the process of having the new property’s address amalgamated with the current Port Perry address. This would allow Aleafia Farms to request an amendment to its existing Health Canada license, rather than applying for an entirely new Cultivation License. The Outdoor Grow Phase II buildout will also commence in September, with the intention of submitting a full evidence package to Health Canada in late 2019, demonstrating that the site is in a grow-ready state.
OUTDOOR GROW PHASE II EXPANSION HIGHLIGHTS
Upon receipt of requisite regulatory approvals, the acquisition will:
Increase outdoor cannabis cultivation area from 26 to 86 acres
Leverage existing buildings on-site for conversion to cannabis drying rooms and staff accommodations
Benefit from significant economies of scale and streamlined regulatory process compared to the building of an entirely new facility
Positive local economic impact, through the continued hiring of regionally based contractors and labour
COMPANY COMPLETES SALE OF UNUSED PARIS ROAD PROPERTY
In addition, the Company’s wholly owned subsidiary, Emblem Corp., has completed the sale of an unused 43-acre property, located at 539 Paris Road in Brant for net cash proceeds of $8.2 million. The transaction closed on August 28, 2019.
“We are delighted to build on the success of our 2019 outdoor cannabis crop to date and significantly expand our low-cost production operations for next year. Being one of a handful of LPs to operate an outdoor facility this year has positioned us well for a major expansion in 2020,” said Aleafia Health CEO Geoffrey Benic. “These two transactions demonstrate a strong allocation of capital and fiscal prudence. With an additional $7 million cash on hand and 60 new acres of low-cost cultivation area, we are well positioned for sustained future growth.”
About Aleafia Health
Aleafia Health is a leading, vertically integrated cannabis health and wellness company with four primary business units: Cannabis Cultivation & Products, Health & Wellness Clinics, Cannabis Education, and Consumer Experience with ecommerce, retail distribution and provincial supply agreements.
Aleafia Health owns three major cannabis product & cultivation facilities, two of which are licensed and operational including the first large-scale, operational outdoor cultivation facility in Canadian history. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators and has international operations in three continents.
Innovation is at the heart of Aleafia Health competitive advantage. The Company maintains a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value and has been named the 2019 top performing company of the year by the TSX Venture Exchange prior to graduation to the TSX.