Aleafia Health Inc. Signs Agreement to Acquire 160,000 sq. ft. Niagara, Ontario Greenhouse
TORONTO, May 15, 2018 /CNW/ – Aleafia Health Inc. (TSXV: ALEF OTC: CAMDF) (“Aleafia” or the “Company”) has signed an agreement to acquire a 160,000 sq. ft. modern, fully- automated greenhouse facility in Niagara-region including its advanced growing equipment (“Acquisition”) for $9.6 million. The transaction is expected to close on July 4, 2018.
Aleafia is one of Canada’s leading vertically integrated medical cannabis companies focused on “patient-centric” medical cannabis care.
- The160,000 sq. ft. Niagara facility has an immediate expansion capability of another 20,000 sq. ft.
- Both the 160,000 sq. ft. Niagara facility along with the 150,000 sq. ft. Scugog expansion plan are fully funded.
- Given the modern state of the Niagara greenhouse, Aleafia is expected to accelerate its production capacity and in turn respond more quickly to its patients needs.
- Aleafia has an experienced production team in place that has been successful in acquiring 4 production licences from Health Canada.
- A second site licence application will be submitted to Health Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR) for the newly acquired Niagara facility.
- It is expected that Aleafia will align its production of quality standardized strains of medical cannabis to its data base of information which sets out the needs of its patients based on those patients’ medical conditions.
- The advanced automation and strategic layout at the Niagara greenhouse facility requires minimal retrofitting and it is expected that Aleafia will achieve a greater production capacity at a lower cost.
- It is expected that the transaction will be treated as an expedited acquisition for purposes of the policies of TSX Venture Exchange. The transaction is subject to acceptance of the TSX Venture Exchange.
“This latest Aleafia acquisition is a major strategic achievement for the Company that strongly positions us for success as we continue to execute on the next phase of our operations” said Aleafia’s Executive Chairman Julian Fantino.
“We, at Aleafia want to ensure that the strains required by our patients are available to them when they need them” said Aleafia’s Chief Executive Officer Raf Souccar.
“With its automated moving container bench system, precision irrigation and highly efficient LED lighting for plants in their vegetative stage, we will have one of the most efficient cultivation greenhouses in the medical cannabis industry, capable of producing up to seven crops per year.” said Lucas Escott, Aleafia’s production specialist.
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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.
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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.