Aleafia stock soars in early session on Tuesday after Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) said it will see its first profitable quarter in the three-month period ending September 30, 2019.
Turnaround?
The cannabis industry has come a long way over the past year or so, and although many companies have grown considerably, profits still seem elusive for many of them. Although, in this regard, it is important to note that the sector has had a tough time as of late. That being said, cannabis major Aleafia Health has stated today that the company expects to turn a profit in the third quarter this year and that should come as a major boost for the company’s investors. Moreover, it is a positive development for the cannabis industry at large as profits seemed like a distant dream for many companies.
Aleafia stated that at this point in time, it has as many as 10,000 registered patients for its medical cannabis. That reflects a healthy jump of 3,000 patients from two months ago. However, that is not all.
>> NBEV Stock Soars 18% as Japan Approves CBD Products
At the time of writing, Aleafia stock is trading higher by 7% at $0.715 on the OTC market. On the Canadian side, ALEF stock is up 5% at $0.955.
The company has also expanded its overseas operations considerably, and now, the company’s products are also being prescribed in Paris as well as in Australia. While it stated that it is going to reach the milestone of positive net income in Q3, Aleafia also revealed that it currently has a cash pile of $51 million.
The company has been making highly important deals this year and perhaps its most important one was the merger with Emblem. With the completion of that merger, Aleafia Health was able to further expand its medical clinic business considerably. However, more importantly, the merger also resulted in a considerable rise in the total production capabilities of the new entity.
Now, Aleafia Health boasts of the production capability of 138,000 kilos a year, and that makes it one of the biggest cannabis producers in the industry. The company seems to be moving in the right direction, but it will need to keep expanding aggressively in order to fulfill the hopes of Aleafia stock investors.
What do you think?
Featured image: Canva
