Aleafia Health Inc. announced the full repayment in cash of its 8% unsecured convertible debt, which matured on February 2, 2021. Emblem Corp., which issued the Convertible Debt on February 2, 2018, was acquired by the Company on March 14, 2019.
“Our team is excited to see continued cannabis sales growth in 2021, driven by new products launched late last year,” said Aleafia Health CEO Geoffrey Benic. “The adult-use, medical and international cannabis markets are the pillars of our 2021 growth strategy, and we look forward to capitalizing on this global opportunity through the continued expansion of our cannabis product portfolio.”
Building on record cannabis net revenue realized in the quarter ended December 31, 2020 (“Q4 2020”), the Company is pleased to report on additional near term growth opportunities across the medical, adult-use, and international sales channels.
- Medical Cannabis: Q4 2020 represents Aleafia Health’s best medical cannabis sales quarter to date. The Company expects to continue this growth trajectory in 2021 with a more diverse product mix, expanded same-day delivery service which is critical during Covid-19, and through its strategic partnership with Unifor, Canada’s largest private sector union. In January, traditionally a month with slower demand, the Company observed its fourth consecutive monthly record for medical cannabis revenue.
- Adult-use Cannabis: The Company’s adult-use market strategy, coupling an expanded product portfolio and dedicated sales team with deep cannabis experience, is now delivering promising results. In the first month of 2021, adult-use purchase orders have nearly surpassed the total order value in Q4 2020, driven in part by sales of an innovative product, Kin Slips® sublingual strips. Shipments to additional provincial markets are also expected to commence in the near term.
- International Cannabis: Following the completion of its largest international cannabis shipment in Q4 2020, the Company has entered into supply agreements with new strategic partners in the European Union and Israel, significantly expanding international cannabis sales. Purchase orders for both markets, and a new order from Australia, are being processed, with timing of delivery dependent on the receipt of necessary import and export permits.
- Product & Brand Development: The launch of new product formats and a strengthening of core lines has substantially driven sales growth in early 2021. Further product development is also underway, with the near term launch of soft chews and new dried flower cultivars. Later this month, the Company plants to provide further details on a much broader expansion of its adult-use brand and product portfolio. This will be led by new brands tailored to specific consumer segments, each featuring novel and high-demand formats, aligned with the needs of Canadian consumers.
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company offering cannabis health and wellness services and products in Canada and in international markets. The Company operates medical clinics, education centres and production facilities for the production and sale of cannabis.