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Aleafia Health (ALEF:TSX, ALEAF:OTC)

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If anyone has been following the legalization of cannabis in Canada, there was a bonanza from about 2016 to early 2019, and now it appears it could be set to rally again, with a rebound in the last few days and Canada's biggest province discussing a bigger rollout of retails stores to increase sales.

Aleafia Health is a fairly unique company in that space. It already has ties to Australia through CannaPacific - an Aussie grower.

They embraced outdoor growing as soon as it was regulated in late 2018, unlike almost all other licensed producers in Canada (of which there are currently ~200 total). It got the grow licensed late and was able grow cannabis for ~4.5 months in 2019 in Canada's ~5.5 month growing season at $0.10/gram. Other licensed producers are growing it for anywhere from $1.00-$3.00/gram using greenhouses (Aleafia has a greenhouse as well, but has expanded it's outdoor grow space from 10.5 hectares to 35 hectares, and will be ready for the full season in 2020).

It yielded ~1,000kg of dried cannabis per acre in 2019 and has estimated ~1,200kg/acre for next year - coming in at an estimate of ~100,000kg for a proposed cost of $10,000,000.



Aleafia is a really interesting company with financials that show it turning the corner. In terms of taking a flyer on a pot company, this is one of the least risky ones that exists on the Canadian market.

Take a look!
 
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