2019 might have been a disappointing year for many cannabis companies, but things have been a lot different in 2020, and many experts believe that the sector might be on the verge of a rebound. One of the cannabis stocks that have done particularly well over the past two weeks is Aleafia stock, so we're checking in with Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) to see what's going on.
Aleafia stock has rallied by as much as 20% during the period, and much of that has been driven by the latest events surrounding the company. Back on January 16, the company announced the launch of a new product in Canada, and that has created a lot of excitement in the market.
Aleafia Health announced that its fully owned subsidiary, Emblem Cannabis Corporation, reached an agreement with Kinstate Inc by way of which the latter’s cannabis-laced sublingual strips brand and underlying sublingual strip technology are going to be introduced into Canada. Emblem will have the exclusive right to manufacture and sell the Kin Slips products made by Kinstate in Canada. The brand is well-known for having brought a wide range of innovative products to the cannabis space.
Aleafia stock is down by 2% at $0.67.
Aleafia was one of the few companies in the cannabis space that posted a profit in its last reported quarter. In Q3 2019, the company managed to generate revenue to the tune of $3.99 million, which reflects a handsome 34% rise from the previous quarter.
However, the most important take away from Aleafia Health’s third-quarter financial result was the fact that the company managed to turn a profit of as much as $1.41 million. This marked a remarkable turnaround for Aleafia, considering the fact that in the previous quarter, it had posted a loss of as much as $8.68 million.
However, that is not all. There has been another major development regarding Aleafia today. The company announced today that its stock has managed to become a part of the freshly established S&P/MX International Cannabis Index (MCAN). All S&P/MX indices are managed and calculated by the S&P Dow Jones. Aleafia’s addition to this index is another important milestone for the company.
Since Aleafia stock is now on the upward curve, investors could do well to keep an eye on it.
Featured image: Canva