ALEF stock is moving sharply higher as investors are reacting positively to the news that Aleafia Health (TSX:ALEF) (OTCQX:ALEAF) has been included in The Cannabis ETF (NYSE:THCX), the NYSE's newest marijuana-only ETF.
Major Boost for ALEF Stock
When a stock is included in an Exchange Traded Fund (ETF) on a major exchange, then it is definitely a significant development for the company, and that is what has happened with cannabis company Aleafia Health. In a new development, the company announced that it has been inducted into The Cannabis ETF which trades on the New York Stock Exchange.
The said ETF, in turn, tracks the Innovation Labs Cannabis Index, which is a stock portfolio comprising of 35 companies that stand to gain from CBD, marijuana, and hemp.
Canada is now the hotbed of the North American cannabis industry, and although Aleafia Health was a late comer into the industry, the company has made some important moves that could turn it into one of the major players. Cultivation capacity is one of the most important factors if a company wants to turn into a serious player in the cannabis industry and Aleafia Health addressed that by acquiring Emblem, which is among the top cultivators in Canada.
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ALEF stock is up 6% and now trading at $1.24 on the TSX. Moreover, Aleafia stock is now up 5.55% at $0.95 on the OTC market.
Aleafia expanded the products on offer and eventually became one of the biggest medical service providers in the cannabis space in Canada. It has also gained a foothold in the Australian market and also established a joint venture named Acnos Pharma GmBH in order to gain entry into the German market.
That being said, the company will need to fight off a lot of established companies in the industry if it is to become a force. Experts believe that there would be troubles in the near future as they try to establish themselves in the industry, and during that period, its medical service network would need to be the company’s cash cow.
When it comes to the actual stock, analysts believe that although Aleafia Health has achieved a lot during this phase, there is a lot of work to be done if it is to compete against the behemoths of the industry. However, ALEF stock is certainly one to keep an eye on.
Aleafia stock has seen solid recovery with a gain of 30% since June 25.
Featured image: Canva
