Aleafia stock is showing bullish move on Monday after Aleafia Health Inc (TSX:ALEF) (OTCQX:ALEAF) got an order worth $7 million from a licensed producer in Canada.
It is now a well-known fact that the cannabis industry has been going through a prolonged downturn primarily due to problems created by oversupply, and many companies have suffered as a result. Hence, when a company gets a substantial order, it is big news, and such news was delivered today by Aleafia Health.
The company announced that it has received an order of as much as 2,840 kilos of dried cannabis flower from a licensed producer in Canada. The flowers are going to be sold for $2.50 per gram and will bring in $7.1 million for Aleafia.
The flowers are going to be sent in a maximum of three shipments, and in its press release, Aleafia stated that the delivery will be completed by the end of January next year. Geoffrey Benic, Aleafia Health's Chief Executive Officer, stated, “This sale validates the strength of our outdoor cultivation. Moving forward, we have a strong inventory of high-quality outdoor input material to accelerate the growth of our priority international and Canadian medical sales channels.”
The news resulted in an Aleafia stock rally and in early morning trade, the stock rose by 4% to $0.685 CAD
Back in November, Aleafia Health announced its financial results for the third quarter, which proved to be a landmark for the company, as it reported its first-ever quarterly profit. Considering the fact that most companies have struggled to reach their targets, this was definitely a significant achievement for Aleafia. The revenue for the quarter stood at $3.99 million, which was a rise of as much as 34% from the previous quarter.
The profit for the quarter stood at $1.41 million, and it is particularly remarkable considering the fact that in the second quarter, the company had made a loss of $8.68 million. It should be noted that the company had earlier projected that it was going to turn a profit in the third quarter.
Aleafia stock has corrected almost 55% since the beginning of this year.
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