Aleafia Health | Official Site

View this email in your browser
Aleafia Health Expands Outdoor Cannabis Facility by Additional 60 Acres with Property Acquisition New property cost $1.2 million and is directly adjacent to current Port Perry Outdoor Grow facility Company subsidiary, Emblem, also closes sale of unused Brant, Ont. property for $8.2 million in net cash TORONTO, ON, September 4, 2019 – Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH) (“Aleafia Health” or the “Company”)’s wholly owned subsidiary, Aleafia Farms Inc., has acquired the farmland directly adjacent to its Port Perry Outdoor Grow facility. The purchase will allow the Company to commence its Outdoor Grow Phase II expansion, adding an additional 60 acres of cannabis cultivation area, for a total of 86 acres. The transaction closed on September 3, 2019, with a cash purchase price of $1.2 million.
Following closing, the Company will commence the process of having the new property’s address amalgamated with the current Port Perry address. This would allow Aleafia Farms to request an amendment to its existing Health Canada licence, rather than applying for an entirely new Cultivation Licence. The Outdoor Grow Phase II buildout will also commence in September, with the intention of submitting a full evidence package to Health Canada in late 2019, demonstrating that the site is in a grow-ready state.
OUTDOOR GROW PHASE II EXPANSION HIGHLIGHTS
Upon receipt of requisite regulatory approvals, the acquisition will: Increase outdoor cannabis cultivation area from 26 to 86 acres Leverage existing buildings on-site for conversion to cannabis drying rooms and staff accommodations Benefit from significant economies of scale and streamlined regulatory process compared to the building of an entirely new facility Positive local economic impact, through the continued hiring of regionally based contractors and labour
COMPANY COMPLETES SALE OF UNUSED PARIS ROAD PROPERTY
In addition, the Company’s wholly owned subsidiary, Emblem Corp., has completed the sale of an unused 43-acre property, located at 539 Paris Road in Brant for net cash proceeds of $8.2 million. The transaction closed on August 28, 2019.
“We are delighted to build on the success of our 2019 outdoor cannabis crop to date and significantly expand our low-cost production operations for next year. Being one of a handful of LPs to operate an outdoor facility this year has positioned us well for a major expansion in 2020,” said Aleafia Health CEO Geoffrey Benic. “These two transactions demonstrate a strong allocation of capital and fiscal prudence. With an additional $7 million cash on hand and 60 new acres of low-cost cultivation area, we are well positioned for sustained future growth.” For Investor and Media Relations, please contact:
Nicholas Bergamini, VP Investor Relations [email protected] LEARN MORE: www.AleafiaHealth.com CORPORATE PRESENTATION
About Aleafia Health:
Aleafia Health is a leading, vertically integrated cannabis health and wellness company with four primary business units: Cannabis Cultivation & Products, Health & Wellness Clinics, Cannabis Education, and Consumer Experience with ecommerce, retail distribution and provincial supply agreements.
Aleafia Health owns three major cannabis product & cultivation facilities, two of which are licensed and operational including the first large-scale outdoor cultivation facility in Canada. The Company produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and education centres staffed by MDs, nurse practitioners and educators.
Innovation is at the heart of Aleafia Health competitive advantage. The Company maintains a medical cannabis dataset with over 10 million data points to inform proprietary illness-specific product development and its highly differentiated education platform FoliEdge Academy. The Company is committed to creating sustainable shareholder value and has been named the 2019 top performing company of the year by the TSX Venture Exchange prior to graduation to the TSX. Forward Looking Information
This news release contains forward-looking information within the meaning of applicable Canadian and United States securities laws. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes” or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained in this news release. Risks, uncertainties and other factors involved with forward-looking information could cause actual events, results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking information, including risks contained in the Company’s annual information form filed with Canadian securities regulators available on the Company’s SEDAR profile at www.sedar.com. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information and no assurance can be given that such events will occur in the disclosed time frames or at all. The forward-looking information included in this news release are made as of the date of this news release and the Company does not undertake any obligation to publicly update such forward-looking information to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.
8810 Jane Street, 2nd Floor, Concord, Ontario L4K 2M9, Canada Update your email preferences or unsubscribe. Copyright © 2019 Aleafia Health, All rights reserved.

Port Perry
Amendment for medical sales and outdoor grow at the Port Perry Facility sent January 18, 2019.
Port Perry is a community located inside of the town of Scugug.
7,000 sq. ft. facility.
500-600kg/year capacity.
Received local regulatory approval for a 30-acre secure outdoor cannabis grow expansion.
​
They display an image of the land on their website. Here's a google maps link to Aleafia's site.
Here's an image from Google Earth Pro taken May/7/2018:
- Total area appears to be ~73 acres.
- Area of cleared land appears to be ~30 acres
- Update from April 29 webcast
​
Dec/2017 - Aleafia purchased AeroFarms and their Scugug/Port Perry land and facility.
Sept/2018 - They received their license to sell cannabis Business-To-Business and has made it's 1st sale to CannTrust.
Oct/9/2018 - They Announced that they'll be establishing an outdoor grow yielding 60,000kg/year at the site, on 30 acres of land adjacent to their indoor grow. They intend to complete the first harvest in 2019.
Jan/7/2019 - Aleafia announces 2nd sale of cannabis to CannTrust.
Ap30/2019 - Aleafia announced site readiness and submission of evidence package.
​
​
Niagara
Application for a cultivation, process and sale licence submitted August 27, 2018.
378 South Service Road in Grimsby, Ontario
160,000 sq. ft. facility.
Has an immediate expansion capability of another 20,000 sq. ft.
Here's the image from their website.
​
May/15/2018 - Aleafia announced their agreement to purchase the 160,000 sq. ft. greenhouse. It closed July 4th.
Jan/7/2019 - Phase 1 construction and retrofitting announced complete. The Company expects to complete Phase II of the construction and retrofitting on the balance of the facility in late Q1 or early Q2 2019.
Note: There is no detailed breakdown in the MD&As of the Niagara phases of construction/retrofitting.
​
​
20 Woodslee Avenue
Amendment for building expansion sent April 18, 2019.
25,000 sq. ft. facility
30,000 sq. ft. expansion almost built out.
​
May/14/2017 - Here's the Google Earth Pro image. Phase 1 and 2. Around 25,000 sq. ft. Notice the parking lot to the left.
Feb/26/2018 - Phase 3 has begin being built in that parking lot space, an additional 30,000 sq. ft.
July/7/2018 - Phase 3 is now roofed.
~
As per the Emblem Dec/31/2017 MD&A:
Phase 1
- Mothering and vegetation rooms;
- Two flowering rooms together with attendant drying, packaging and fulfillment areas, vault area and administration.
Phase 2
- The production building also was renovated to create an additional four grow rooms.
Phase 3
- Constuction commenced on 30,000 square foot facility.
- GMP extraction facility, laboratory and pharmaceutical production facility.
- Will also house additional administration space, cannabis storage, warehousing, shipping, receiving and space for materials handling.
​
​
539 Paris Road
​
- News release of purchase (March 30 2017)- "two contiguous parcels of land, aggregating approximately 80 acres"
- This address is available through the County of Brant website, under Site Plan Control.
- Google Earth Pro from July 7 2018. My best guess as to property boundaries totalling 80 acres.
- It's a 10 minute drive away from the Woodslee facility.