Aleafia Health Inc. Names Seasoned Logistics Executive Geoffrey M. Benic as Chief Executive Officer
TORONTO, June 28, 2018 /CNW/ – The Board of Directors of Aleafia Health Inc. (TSXV: ALEF; OTCQX: ALEAF) (“Aleafia“) or (the “Company“), one of Canada’s leading, vertically integrated medical cannabis companies with a unique patient-focused, healthcare solution, has appointed Geoffrey M. Benic, as its new CEO. Benic has overseen significant growth at several entrepreneurial companies with his organizational, logistical and team-building expertise.
The Hon. Julian Fantino will continue to serve as Chairman of the Board of Directors. Raf Souccar will also continue to serve actively on the Board of Directors. Souccar and Fantino, who step aside as CEO and Executive Chairman respectively, will continue to work closely with Benic to expand on Aleafia’s many cultivation, clinical and patient assets and move the company forward into a leadership position in the Canadian Medicinal Cannabis market.
Widely known for his role in helping to create and build the iconic Grocery Gateway brand, Benic’s career has been characterized by success in many highly demanding environments. Previously regional director of United Parcel Service Canada, one of the world’s most rigorous and demanding global logistics entities, Benic moved on to be an initial Grocery Gateway employee and General Manager. From October 2004 until June 2018, Benic was the founder and chairman of Sofilia Logistics Group Inc., a leading National Delivery Logistics Service, where he followed a vertical integration growth strategy and successfully acquired and integrated mid-market businesses. His capital-raising abilities have been significant and include several mergers and acquisitions and eventual sales to larger companies.
“Geoff Benic possesses all the skills that will enhance and maximize Aleafia’s next growth phase, and build on its success combining 22 clinics, over 50,000 patients assessed since inception and two cannabis production facilities into an integrated organization, with an annual fully funded production capacity of 38,000 kg per year of cannabis flower,” commented Fantino.
“His demonstrated capabilities and track record are perfect for Aleafia’s next growth phase, which will include the development of new proprietary products, such as cannabis oils, while deploying its net cash position of $30 million.” “He is an outstanding choice to help Aleafia reach new heights, after its strong start up, merger with Canabo and entry to the public markets,” added Souccar.
“I am excited to join this young, ambitious and already successful company. My mission will be to expand on Aleafia Health’s successful business strategy, which has centered around quality patient care. From “seed to sale,” we will continue to take a patient-first, physician-led and research-driven approach to medical cannabis care,” said Benic.
The company’s 22 clinics, with over 25,000 active patients, have access to a vast medical cannabis treatment database, which identifies strains that have proven to be successful in treating certain medical conditions. This database is being deployed to advance the science of medical cannabis therapy, including establishing the scientific case for medical cannabis to replace opioids.
As additional assurance in delivering and controlling quality treatment, Aleafia will be operating two state-of-the-art cultivation facilities. The first, in Scugog, Ont., is undergoing a fully funded 150,000 sq. ft. expansion plan. The second, in the Niagara region, expected to close this July, has been a transformational transaction for the company. It has brought an already operating 160,000 sq. ft. state-of-the-art fully automated facility into Aleafia’s cultivation capabilities, with an immediate expansion capability of another 20,000-sq. ft.
Under Benic’s leadership, Aleafia expects to refine its set of medical cannabis strains, to ensure that they are tailored to meet the specific needs of Aleafia’s patients. This will help physicians make treatment recommendations that have been proven effective through historical data, creating a faster route to patient relief and satisfaction and ensuring that strains required for specific medical conditions are available to its patients when required. By cultivating its own product, Aleafia Health will ensure standardization and quality of its treatments, as well as a shortened seed-to-patient interval. Also, once Aleafia receives it ACMPR bulk sales license which is expected in the very near future, Aleafia will be in position to sell its product to other licensed producers such as CannTrust, Aleafia’s cultivation and plant genetics partner. Benic entered into an executive employment agreement with the Company pursuant to which he was granted, as partial compensation, an aggregate of 1,250,000 stock options under the Company`s stock option plan of which 1,000,000 stock options vest every six months over a 2 year period (Time Based Options) and 250,000 vest upon the completion of various performance milestones as determined by the Board (Performance Based Options). The Time Based Options are at an exercise price of $0.82 for the first three vesting periods and at an exercise price of $1.25 for the final vesting period. The Performance Based Options are at an exercise price of $0.82. All options have a five year term.
The Board of Directors of Aleafia wishes to thank Raf Souccar and the Honourable Julian Fantino for their continued leadership in providing the company with the support and enduring drive to create the foundation of Aleafia, setting the stage for its next phase of growth.
Aleafia also announces that it has filed its articles of continuance to change its corporate jurisdiction from British Columbia to Ontario which will be effective by the end of this week.
For Investor Relations, please contact:
For Media Relations, please contact:
Nicholas Bergamini, VP Public Affairs
416-860-5665 ext. 224
About Aleafia Health Inc.:
Aleafia is a leading, vertically integrated medical cannabis company with a unique focus on delivering quality patient care from “seed” to “sale.” Aleafia is uniquely positioned with a singular focus on the medical cannabis market. The company operates the largest brick and mortar medicinal cannabis clinic network in Canada under the Canabo Medical Clinic brand, which is staffed by licensed, practicing physicians. Aleafia has obtained over 50,000 unique patients and maintains the largest medical cannabis patient data set in Canada. Aleafia’s state of the art production facilities will allow for the production of high- quality strains at low cost. Aleafia’s production will focus on securing the highest- quality medicinal product for its growing patient base.
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.