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Aleafia Health gets the go-ahead on facility expansion

Cannabis
TSX:ALEF
04 May 2020 07:30 (EDT)
Alaefia - CEO, Geoffrey Benic

Source: Cannabis FN

Aleafia Health’s (TSX:ALEF) subsidiary Emblem Cannabis, has received a License Amendment from Health Canada for its Paris facility.

The License Amendment, received on May 1, allows for the facility’s Phase II expansion, by approximately 30,000 square feet. The Amendment authorises cannabis production across the entire expanded building. 

Aleafia and Emblem will dedicate the new extension to the extraction, production, packaging, and distribution of cannabis products. The extension has multiple packaging lines, and rooms for producing new product formats. It also has in-house Quality Control analytical testing, and research and development. 

The company built the expansion to meet the standards of the EU GMP (European Union Good Manufacturing Practices).

Aleafia and Emblem expects to start production and packaging operations within the Paris facility’s expansion in the next two weeks. 

In addition to increasing the company’s overall capacity, it will also accelerate its Cannabis 2.0 product strategy.

Furthermore, Aleafia will start processing and packaging flower cultivated from its Port Perry outdoor cultivation site and Niagara facility.

Aleafia Health’s CEO, Geoffrey Benic, welcomed the Amendment from Health Canada. 

“The Phase II expansion, our crown jewel, permits an exponential increase in our ability to produce and sell high-margin cannabis health and wellness products in the medical, adult-use and international markets.

“The Paris facility’s state-of-the-art expansion, purpose-built to meet EU GMP standards, creates a unique competitive advantage with significant barriers to entry. Coupled with our ultra-low-cost outdoor cultivation, it sets us apart in the cannabis industry. 

“This means greater breadth of formats, greater scale and automation, and ultimately higher margins as we utilize cannabis grown outdoors through our integrated production ecosystem. 

“This breakthrough also accelerates our Cannabis 2.0 strategy and will allow us to produce new differentiated product formats. We have been preparing for months and have ordered equipment, completed formulations, and have built up a large inventory of cannabis extracts to be used as input material for new formats for immediate use in the new facility. Now it’s time for execution,” he said. 

Aleafia was trading for $0.52 per share at Friday’s market close, with a market cap of $144.49 million.

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