Aleafia Health Inc. (TSX: ALEF; OTC: ALEAF) Q3 financial results for the period ended September 30, 2019, show that the company achieved its first profitable quarter.

Third Quarter Financial Highlights (All amounts are expressed in thousands of Canadian dollars and compared to Q2 2019)

• Revenue increased by 34%
  • Gross Cannabis Revenue increased by 64%
  • Net Cannabis Revenue increased by 58% 
    • Net adult-use revenue increased by 53%
    • Net medical cannabis revenue increased by 43%
    • Net bulk LP-to-LP revenue increased to $224K from $0 in the previous quarter
  • Clinics Revenue declined by 20%
• Gross Profit increased by 265%
• Total Expenses decreased by 30%
• Adjusted EBITDA loss declined by 44% to $2,526M
• Net Income increased to a profit of $1,859M from a loss of $11,477M 
• Cash, Cash Equivalents & Marketable Securities declined by 10% to $57,172M
• Working Capital increased by 10% to $83,411M
• Growth in Medical Patients increased by 48%

Operations Highlights Subsequent to End of Q3

• ​Port Perry Outdoor Grow Facility
  • completed construction of the 1.1 million sq. ft. (26 acre) outdoor grow facility
  • acquired the farmland directly adjacent to facility for a cash purchase price of $1.2 million thereby adding an additional 2.6 million sq. ft. (60 acres) of cultivation area, for a total of 3.7 million sq. ft (86 acres).
  • expects to formally submit its Licence Amendment application and Site Evidence Package to Health Canada during Q4 2019.
• Paris Processing Facility
  • ​ occupied a new 30,000 sq. ft. facility entirely dedicated to the extraction, production, packaging and distribution of high-margin, value-added cannabis health and wellness products.
• Niagara Greenhouse
  • ​completed material capital improvements of the modern 160,000 sq. ft. a facility which will be operational within two weeks of securing its Health Canada Cultivation Licence

Aleafia Health:

• is a vertically integrated cannabis health and wellness company with four primary business units: Cannabis Cultivation & Products, Health & Wellness Clinics, Cannabis Education, and Consumer Experience with e-commerce, retail distribution and provincial supply agreements:
• owns three major cannabis product & cultivation facilities, two of which are licensed and operational, including the first large-scale, operational outdoor cultivation facility in Canadian history;
• produces a diverse portfolio of commercially proven, high-margin derivative products including oils, capsules, and sprays;
• operates the largest national network of medical cannabis clinics and education centers staffed by MDs, nurse practitioners and educators and
• operates internationally in three continents.