Aleafia’s to Launch Industry First 60,000 kg Secure Outdoor Grow Expansion
09 October 2018 - 10:00PM
Low Cost Expansion to Increase Aleafia’s Annual
Production Capacity to 98,000 kg
Aleafia Health Inc. (
TSXV: ALEF; OTCQX: ALEAF, FRA:
ARAH) (“
Aleafia”) or (the
“
Company”), one of Canada’s leading, vertically
integrated cannabis companies, is announcing that it will move
forward with an industry first secure, low-cost outdoor cannabis
grow. The company has now obtained local regulatory approval for a
60,000 kg capacity expansion at its Port Perry cultivation
facility.
Pending standard Health Canada approvals, Aleafia will build an
innovative, secure outdoor cultivation site, leading to significant
reduction in up front capital investments, operating expenses and
ultimately, a lower cost per gram output. The Port Perry site is
currently home to a Health Canada licensed, fully operational
indoor cultivation facility. The expansion will be on 30 acres of
land adjacent to the cultivation facility already owned by
Aleafia.
“Aleafia is once again positioning itself as an innovative
leader in the cannabis industry,” said Aleafia Chairman Julian
Fantino. “Secure outdoor cultivation will see Aleafia produce
cannabis at among the lowest cost per gram rates in the industry,
when compared to traditional greenhouse cultivation.”
The company intends to complete its first harvest in the summer
of 2019.
As part of Aleafia’s commitment to corporate social
responsibility, the company will also hire primarily from the local
labour force, creating between 80 to 100 jobs. The proposed outdoor
cultivation site would include dual perimeter fencing and 24/7
on-site security. “The region is blessed with a climate and
landscape perfectly suited to agriculture. This cultivation
expansion will be a boon to the local tax base while creating good
paying jobs,” said Aleafia CEO Geoffrey Benic.
Operational Update:
- 160,000 sq. ft. Niagara greenhouse retrofitting on schedule and
expected to be complete in late 2018
- Fully funded annual growing capacity of 38,000 kg of cannabis
flower in 2019, increasing to 98,000 kg with Port Perry
expansion
- 50,000 medical cannabis patients
- Secured first medical cannabis sale in company’s history, only
days after securing Sales Licence from Health Canada
Corporate Update
Aleafia is also pleased to announce that Lea Ray has joined its
board of directors. Ray is a Chartered Professional Accountant and
seasoned board director, holding an ICD.D from the Institute of
Corporate Directors. Ray will also serve as chair of the audit
committee which will now consist of Lea Ray, Mark Sandler and
William Stewart.
Over the past decade, Ray has held multiple board leadership
roles including Chair of Audit, Finance and Governance Committees
and Board Vice-Chair. Her financial career began with
PricewaterhouseCoopers and she is a former Vice-President Corporate
Finance at Warner Bros. Entertainment Canada Inc.
Ray has also served on the Professional Conduct Committee of the
Chartered Professional Accountants (Ontario) and has served as a
board member and volunteer of several non-profit health,
conservation and community institutions.
“The Aleafia board of directors is pleased to have Lea Ray join
our ranks. Her wealth of experience as a business executive and
corporate director will provide immediate value to Aleafia,” said
Aleafia Chairman Julian Fantino. “Lea will be an invaluable
resource for Aleafia as we expand our business and seek broader
access to the U.S. investment community.”
The company granted Ms. Ray 250,000 stock options (the
“Options”) under its stock option plan. Each
Option is exercisable into common shares of the company at an
exercise price of $2.65. The Options vest every six months over a
two-year period and expire on October 5, 2023.
The company is also no longer proceeding with the proposed Early
Warrant Incentive Program.
For Investor & Media Relations, please
contact:
Nicholas Bergamini, VP Public Affairs
IR@AleafiaInc.com About Aleafia Health
Inc.: Aleafia is a leading, vertically integrated
cannabis company with major cannabis cultivation & processing
and medical cannabis clinics business operations. Aleafia owns two
cannabis cultivation facilities, one of which is licensed and fully
operational and one which will be fully operational in late 2018.
Aleafia will reach a fully-funded annual growing capacity of 38,000
kg in 2019. Canabo Medical Clinics are the largest brick and mortar
medical cannabis clinic network in Canada with 22 locations and
over 50,000 patients.
Neither Exchange nor its Regulation Services Provider
(as that term is defined in the policies of the Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements and
information that are based on the beliefs of management and reflect
the Company's current expectations. When used in this press
release, the words "estimate", "project", "belief", "anticipate",
"intend", "expect", "plan", "predict", "may" or "should" and the
negative of these words or such variations thereon or comparable
terminology are intended to identify forward-looking statements and
information. The forward-looking statements and information
in this press release includes information relating to the
implementation of Aleafia Health's business plan. Such
statements and information reflect the current view of the Company
with respect to risks and uncertainties that may cause actual
results to differ materially from those contemplated in those
forward-looking statements and information.
By their nature, forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause our
actual results, performance or achievements, or other future
events, to be materially different from any future results,
performance or achievements expressed or implied by such
forward-looking statements. Such factors include, among
others, the following risks: risks associated with the
implementation of Aleafia Health's business plan and matters
relating thereto, risks associated with the cannabis industry,
competition, regulatory change, the need for additional financing,
reliance on key personnel, the potential for conflicts of interest
among certain officers or directors, and the volatility of the
Company's common share price and volume. Forward-looking
statements are made based on management's beliefs, estimates and
opinions on the date that statements are made and the Company
undertakes no obligation to update forward-looking statements if
these beliefs, estimates and opinions or other circumstances should
change. Investors are cautioned against attributing undue
certainty to forward-looking statements.
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