Canadian cannabis stocks have corrected this morning, after shinning green all day yesterday. It may have to do with the fact that US markets are closed today due to Thanksgiving, but that remains unknown. Today, we'll take a closer look at the Aleafia stock, down on the TSXV today.
Aleafia Stock Today
Aleafia Health Inc. (TSXV:ALEF) is headquartered in Concord, Ontario, and provides medical cannabis consultation services to patients dealing with chronic pain. Alefia operates its medicinal cannabis clinic network under the Canabo Medical Clinic brand.
This morning, Aleafia announced that it has settled the final forms of its definitive joint venture with Serruya Private Equity. In addition to its joint venture, Serruya announced it will be making a $10 million strategic investment in Aleafia Health. Despite the investment news, Aleafia stock is trading red today.
“Aleafia is now well positioned to produce commercially proven international cannabis brands for our national cannabis retail network along with provincial distributors,” said Aleafia Chief Executive Officer Geoffrey Benic. “In launching adult-use cannabis operations, we will greatly benefit from working with and receiving Serruya’s substantial financial backing. These transactions will see Aleafia immediately assume a leadership role in adult-use cannabis production, supply and retailing, complementing our proven medical cannabis operations.”
Aleafia will also invest $5 million of its gross proceeds into the newly finalized joint venture.
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Aleafia Stock Movement
According to Yahoo Finance, ALEF is currently trading at $2.06 a share, down -$0.06 (-2.83%). In the last five days, the cannabis penny stock is down -1.90%, and for the month, Aleafia's stock is down -18.25%.
However, in the last six months, the cannabis stock shot up 267.9%, as interest for cannabis continued to grow. Canada nationally legalized recreational cannabis on October 17th, and many Canadian cannabis companies saw monumental rises in their share prices in the ramp up to legalization.
Growth may be beginning to stagnate, as we see many cannabis companies trader lower and lower. What will be the future of cannabis? We'll have to wait and see.
Featured Image: Depositphotos/© leungchopan
