ALEF stock has been outperforming the broader cannabis stocks this month amid several positive developments coming from Aleafia Health (TSX:ALEF) (OTCQX:ALEAF).
On Monday, the company posted solid growth in its top line for its first quarter, while the net loss came in at $20.2 million.
Solid Revenue’s Growth
For the latest quarter ended on March 31, 2019, Aleafia Health posted revenues of $1.5 million, an impressive jump of 1,723% from $0.1 million in a year ago quarter. Net loss for the quarter stood at $7 million, which excludes the one-off non-cash payment of $13.2 million for the closing of the acquisition of Emblem Corp.
Interestingly, the company had $36.8 million in cash, compared to the sequential quarter ended December 31, 2018, when it had $26.4 million.
In an important update, the company said that Health Canada has issued them with a status update letter indicating that their Health Cultivation Licence application for the Niagara Greenhouse facility had passed review and that there were no concerns. This is must be an exciting development for ALEF stock investors.
The passing of the mandatory review is a significant milestone for the company as per the new licensing requirements that Health Canada gave on May 8, 2019.
Furthermore, the company said that its license amendment application for the expansion of Port Perry Outdoor grows is currently under assessment by Health Canada.
ALEF stock is down 1.30%, now selling at $1.70, on the CSE. Moreover, ALEAF stock is up 1.35% on the OTC market.
ALEF Stock Gain Momentum
Since May 6, 2019, when the company announced that it had signed a deal to enter the German medical cannabis space, Aleafia stock has jumped 26%. German is among the largest cannabis markets in Europe, and it represents great potential for the company.
Aleafia Health deals in almost all lines of business in the cannabis industry and the past few days its stock have been on the rise.
The company’s branded cannabis oil will be the main product that the company will distribute in pharmacies across German through the joint venture they signed. The joint venture which involves Emblem cannabis Corp. is an excellent move for Aleafia Health, and it will give then control in the German market.
In other development, Aleafia Health, On May 9, completed the largest cannabis oil order in its history worth total value of $700,000.
ALEF stock is up 25% so far in May, but it has corrected almost 40% from its February peak price of $2.77 CAD.