Aleafia stock has been correcting since the beginning of February amid growing worries about the cannabis sector. However, Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) has had multiple pieces of good news over the past month. Let's analyze the company's operations and the latest news.
Aleafia Stock Falls 65% Since February
The cannabis sector has been in the middle of a churnover the past few months as the optimism about the sector was tempered by investors, and consequently, many stocks gave up much of the gains since around February this year. Like many other cannabis stocks, Aleafia Health also rallied in the months leading up to February this year, but since then, Aleafia stock has corrected by as much as 65%.
However, the company has continued to work toward growing its business. Earlier on in September, the company bought a 60-acre parcel of land just beside its Port Perry facility.
The company, which bought this land for $1.2 million, is going to develop it and then combine it with the existing production facility. Once the two are combined, the company is going to have a total acreage of 86 acres in Port Perry.
At the time of writing, Aleafia stock is down 1% at $0.94 CAD.
The company is going to combine the two properties so that it does not need to apply for a new cultivation license. The combined property can be made operational after an amendment to the existing license. On the other hand, Aleafia delivered an impressive performance in Q2 2019 and delivered record sales in the period.
The company’s gross revenues for the period stood at $3.95 million CAD, which reflects a massive sequential rise of 159% from the previous quarter. The EBIDTA earnings came in at a loss of $2.68 million CAD. The company seems to be going in the right direction despite the troubles in the marijuana sector at the moment.
On the other hand, its acquisition of the wellness specialist Emblem in March this year is another important development. The acquisition helped the company move into the league of the top cannabis producers in Canada.
In Yesterday's session, Aleafia stock made a new 52-week low of $0.91 CAD.
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