Aleafia stock is making gains today after Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) announced that it had completed production of its first white-label run of medical cannabis oils, for distribution in Australia.
Aleafia Stock Gains on Continued Australia Expansion
The products were produced at Aleafia's Paris Processing Facility and will be distributed by Melbourne, Australia-based Montu Group, through its newly launched premium medical brand Circle. The deal represents the first run of Aleafia's newly launched international white label production service, which leverages the company’s proven formulas and international distribution channels. Aleafia stock is up about 1.5% in Toronto following the announcement.
“We are pleased to leverage our established Australian sales channel and new relationship with Montu Group in this fast-growing medical cannabis market," said Aleafia Health CEO Geoffrey Benic, adding that “white label production also represents a new opportunity for us and highlights the strength of our value-added production ecosystem.” Aleafia shares are currently trading for $0.66.
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Christopher Strauch of Montu said that "Australia is a core pillar of our international expansion strategy, as one of the leading and fastest-growing medical cannabis markets in the world. This relationship marks an important milestone in supporting our growing network of doctors to access high-quality cannabis products.”
Fiscally Responsible Strategy
Aleafia stock is currently hovering just above a year-low following a difficult freshman year of legal cannabis for pot stocks in Canada. However, Aleafia Health is one of the few companies to turn a profit this year due in large part to a fiscally responsible growth strategy, with most of its major competitors opting for aggressive expansion plans in an effort to grab as large a market share as possible out the gate, much to their detriment.
Aleafia stock was also in the green last week after the company announced it was launching a series of cannabis education programs and courses in conjunction with a leading, unnamed post-secondary institution. Some of the courses on offer include Cannabis 101 and Cannabis in the Workplace, and given that a large portion of Aleafia’s business is medicinal cannabis, there are also courses aimed at medical professionals.
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