Aleafia Health Stock Price, News & Analysis

Aleafia Health Inc. (TSX: AH, OTCQB: ALEAF) is a premier, vertically integrated, federally licensed Canadian cannabis company. Focused on delivering high-quality health and wellness products, Aleafia Health operates medical clinics, education centers, and production facilities across Canada and international markets. The company boasts three significant licensed cannabis production facilities, including the first large-scale legal outdoor cultivation facility in Canadian history.

Aleafia Health's diverse portfolio includes oils, capsules, sprays, dried flower, pre-rolls, vapes, edibles, sublingual strips, and topicals. The company's medical cannabis clinics and education centers are staffed by physicians, nurse practitioners, and educators, creating the largest national network of its kind in Canada. Internationally, Aleafia Health is active in three continents, including Australia and Germany.

Recent financial highlights include the second consecutive quarter of positive Adjusted EBITDA with a 14% Adjusted EBITDA margin, placing Aleafia among the top three for profitability in its sector. The company reported a 39% growth in adult-use revenue from the prior quarter and a 40% increase in medical net revenue, achieving a record $1.1 million month in November 2022. Aleafia also shipped its first orders under new European agreements, estimating $1 million in sales to its second European partner.

Despite industry-wide challenges, Aleafia achieved a 37% gross profit before fair value adjustments, reflecting a strategic focus on cost containment and profitability. The company's adult-use brand, Divvy, remains a key driver, contributing to notable revenue growth and market share. Aleafia's expansion into Manitoba and successful international ventures are testaments to its robust operational capabilities and strategic foresight.

However, Aleafia Health is navigating financial pressures, including breaches of certain covenants under its Senior Secured Loan Agreement. The company has entered creditor protection under the Companies' Creditors Arrangement Act (CCAA), aiming to restructure its business and financial affairs. Red White & Bloom Brands Inc. (RWB) has been selected as the successful bidder for Aleafia's assets in a court-supervised sale process, subject to court approval.

Aleafia Health remains committed to maximizing value for its stakeholders while continuing to focus on innovation, strategic growth, and delivering high-quality cannabis products to its customers.