Aleafia Health to add 50,000 kg Extraction Capacity at Paris, ON Facility
April 16 2019 - 6:15AM
Company Expecting to Complete Phase II Expansion
in Q3 2019
Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH)
(“
Aleafia Health” or the
“
Company”) will add 50,000 kg of extraction
capacity with the Phase II expansion of the Company’s processing
facility in Paris, ON. The expansion will, when operational, see
the Company’s products and cultivation division, Aleafia Campus,
maintain robust combined extraction and cultivation footprints
across three facilities.
PHASE II 50,000 KG EXTRACTION CAPACITY
EXPANSION
The facility has now secured a partial occupancy permit from the
local government, marking the completion of an important milestone
in the Phase II build-out which it expects to complete in Q3 2019.
Aleafia Health will submit a Licence Amendment application to
Health Canada, and will additionally require the final municipal
occupancy permit prior to the operationalization of the site.
The existing Phase I facility is fully operational and licensed
to cultivate, process and sell the Company’s health and wellness
cannabis products for medical and adult-use consumers.
The expansion is expected to significantly increase the
processing, extraction and packaging of high-margin derivative
products including oils, capsules, sprays and other future formats
under the Company’s adult-use Symbl and medical Emblem brands.
Additionally, the Company will offer tolling and white label
services to other Licensed Producers looking to leverage the
Company’s extraction and packaging capabilities. Aleafia Health is
currently purchasing the necessary equipment to meet or exceed the
50,000 kg capacity expansion, including milling, decarboxylation,
CO2 extraction and winterization machinery. The Company
believes that the 30,000 sq. ft. building expansion will provide
significantly more space than is necessary to operate the new
cannabis production lines.
The additional capacity will ensure adequate extraction for
cannabis sourced from Aleafia Campus indoor, greenhouse and outdoor
cultivation operations along with cannabis secured via existing
wholesale supply agreements, which include;
- Aleafia Campus Indoor cultivation at its
licensed and operational Paris, ON and Port Perry, ON
facilities
- Aleafia Campus Greenhouse cultivation at its
plant-ready 160,000 sq. ft. Niagara, ON facility (upon receipt of
Health Canada licence)
- Aleafia Campus Outdoor cultivation at its Port
Perry 26-acre low-cost outdoor grow (upon receipt of Health Canada
licence)
- Aphria Supply: Five-year, 175,000 kg supply
agreement with Aphria Inc. at preferred wholesale pricing
- Tilray Supply: Three-year, 9,000 kg supply
agreement with Natura Naturals Holdings Inc., a wholly-owned
subsidiary of Tilray, Inc.
“In the medium term, a robust, wholly-owned cultivation
footprint is vital with ongoing supply shortages,” said Aleafia
Health CEO Geoffrey Benic. “However, the inevitable commoditization
of cannabis will reward companies excelling at product innovation,
brand-building and supply chain logistics. Our major extraction
expansion will see Aleafia Health doing just that.”
For Investor and Media Relations, please
contact:Nicholas Bergamini, VP, Public
Affairs416-860-5665IR@AleafiaHealth.com
About Aleafia Health:
Aleafia Health is a leading, vertically
integrated cannabis health and wellness company with four primary
business units: Cannabis Cultivation & Products, Health &
Wellness Clinics, Cannabis Education, and Consumer Experience with
ecommerce, retail distribution and provincial supply
agreements.
Aleafia Health owns three major cannabis product
& cultivation, two of which are licensed and operational. The
Company produces a diverse portfolio of commercially proven,
high-margin derivative products including oils, capsules and
sprays. Aleafia Health operates the largest national network of
medical cannabis clinics and education centres staffed by MDs,
nurse practitioners and educators.
Aleafia Health maintains a medical cannabis
dataset with over 10 million data points to inform proprietary
illness specific product development and treatment best practices.
The Company is committed to creating sustainable shareholder value
and has been named the 2019 top performing company of the year by
the TSX Venture Exchange.
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