Aleafia stock is starting the year in the green despite news that a shipment of Aleafia Health's (TSX:ALEF) (OTCQX:ALEAF) adult-use product was stolen in transit on December 20.
Aleafia Health Inc released an update on Friday, December 20, in which it said that an authorized third-person carrier was holding a shipment of the company's packaged, finished cannabis product intended for the adult-use market for transport to provincial wholesale facilities when it was stolen from the carrier's facility. Aleafia did not name the transport company and said that the value of the product stolen was immaterial. Despite the theft, Aleafia stock has actually gained 10% in the intervening days to see out 2019 in the green.
Aleafia added both its insurance provider and Health Canada were notified of the theft and that it would complete outstanding purchase orders “with existing inventory.”
Resistance to Toronto Store
Aleafia Health faced backlash in the Toronto area earlier in December after it emerged that the company was planning on opening a dispensary in the Kensington Market area of the city, as part of a joint venture with the Serruya Family. Locals have resisted the move to gentrify the area and were critical of former Toronto Police Chief Julian Fantino, who is Chairman of Aleafia's board. Aleafia stock dropped about 10% following the resistance but has since recovered.
Better Times Ahead For Aleafia Stock?
Last year was undoubtedly a difficult 12 months for investors, with Aleafia stock dropping over 50% in the last 12 months despite the company performing quite well on paper. Aleafia Health is one of the few cannabis companies to return a profit in the first year of legalization and managed to generate a 64% rise in revenue in the third quarter. The company is also one of the lowest-cost producers on the market, which has helped sure up declining losses.
Additionally, Aleafia has also signed some impressive deals, which should stand the company in good stead heading into the new year. These include a 2,840-kilo order from a Canadian producer worth around $7 million CAD, as well as a white label order from Australia. Aleafia stock is currently trading up 3.3% during intraday trading to $0.62, signaling that 2020 could just be a better year for its investors.
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