Aleafia Health Inc. (TSXV: ALEF, OTC: ALEAF, FRA: ARAH) (“Aleafia”
or the “Company”) has completed Phase I construction and
retrofitting of its Niagara Greenhouse facility (“Niagara”) located
in Grimsby, Ontario. The Company expects to complete Phase II of
the construction and retrofitting on the balance of the facility in
late Q1 or early Q2 2019.
The Company has also submitted the facility’s Evidence Package
to Health Canada, marking the final stage in the Cultivation
Licence application process. Pending Health Canada approval, the
first Niagara crop is expected to begin in the next 60 days.
Aleafia expects that the Niagara facility will lead to a meaningful
increase in the Company’s total cannabis production
capacity.
Aleafia will have multiple avenues to distribute the cannabis
produced at Niagara, including leveraging its 15,000 kg 2019 supply
agreement with CannTrust Holdings Inc. (TSX: TRST) in the near
term.
Upon the closing of the Company’s previously announced
acquisition of Emblem Corp. (TSXV: EMC, OTCQX: EMMBF)(“Emblem”)
pursuant to the terms and conditions of the arrangement agreement
between the parties, Aleafia expects to leverage Emblem’s highly
differentiated, high-margin production capabilities. It is expected
that capsules, oils and oral sprays produced with Aleafia cannabis
will be ultimately processed, extracted, labelled and shipped from
the Paris, Ontario Product Innovation Center, for use by medical
cannabis patients including Aleafia’s over 50,000 patients seen to
date.
ADVANCED DUTCH GREENHOUSE
ENGINEERING
Aleafia’s cannabis cultivation is led by Head Horticulturist
Lucas Escott. Escott was the co-founder of Mettrum Health Corp.,
which was sold to Canopy Growth Corporation for $430 million. The
Company’s cultivation leadership team has previously led the
build-out and operation of seven purpose-built cannabis cultivation
facilities representing nearly 1 million sq. ft. in growing
space.
The greenhouse is built under the Dutch Hybrid design and is
strategically located in the cannabis cultivation friendly Niagara
Region micro-climate, significantly reducing electricity expenses
and accelerating the seed to harvest period.
Aleafia concluded the $9.6 million acquisition of the greenhouse
on July 30, 2018. The facility has a moving container bench system
which will lead to low-cost per gram yields and a perpetual,
year-round harvest. The Company has made up front capital
investments in modern cannabis cultivation design and engineering.
These investments enable production of standardized, pharmaceutical
grade cannabis.
Phase I represents the construction and retrofitting of 60,000
sq. ft. of the Niagara facility, in which the Company is now
capable of planting its first crop pending Health Canada approval,
with Phase II representing the remainder of the 160,000 sq.ft.
facility.
“Bringing the Niagara Greenhouse to a plant-ready state on time
and on budget speaks to our team’s executional capabilities,” said
Aleafia Chairman Julian Fantino. “Realizing our vision means
securing the highest quality cannabis for our partners and growing
base of medical patients.”
“This milestone, and projected growth in Aleafia’s production
capacity, represents a game-changer for Aleafia,” said Aleafia CEO
Geoffrey Benic. “With an emerging national retail network via
Serruya Private Equity, our 15,000 kg supply agreement with
CannTrust and the pending acquisition of Emblem, the demand for
Aleafia’s high-quality cannabis has never been stronger.”
For Investor & Media Relations, please
contact:
Nicholas Bergamini, VP, Public
AffairsIR@AleafiaInc.com416-860-5665
About Aleafia Health Inc.:
Aleafia is a vertically integrated, national cannabis company
with major medical clinic, cannabis cultivation and R&D
operations. The company is a federally licensed producer and vendor
of cannabis and will reach an annual production capacity of 98,000
kg of dried cannabis in 2019.
Aleafia operates medical cannabis clinics staffed by physicians
and nurse practitioners, with over 50,000 patients. The company is
highly differentiated, maintaining the largest medical cannabis
dataset in the world.
Neither the TSX Venture 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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