Aleafia Health (TSX:ALEF,OTCQX:ALEAF) shares update on new licensing standards from Health Canada and recent order sale.
As quoted in the press release:
The value of the Order is expected to generate proceeds from the sale of cannabis exceeding $0.7 million. In the first 38 days of Q2 2019, including the revenue to be obtained from the Order, the Company has received adult-use cannabis product orders from three Canadian provincial governments of over $1.2 million in gross revenue, representing significant growth when compared to the sale of cannabis revenues generated during 2018. Previously, in its 2018 audited financial statements, Aleafia Health recognized revenues from the sale of cannabis of $0.6 million, derived exclusively from wholesale transactions of dried flower to a Licensed Producer.
Aleafia Health is also providing comment on changes to cannabis licensing announced by Health Canada on May 8, 2019.
“Aleafia Health welcomes Health Canada’s changes to cannabis licensing announced yesterday. These changes will alleviate product shortages and application backlogs, while spurring job creation in local communities as more completed facilities become operational. We fully support these measures,” said Aleafia Health CEO Geoffrey Benic. “Additionally, by increasing supply, Health Canada will make continued progress towards eliminating the black market for cannabis, which is an important policy objective of federal and provincial governments and all responsible stakeholders.”