The recent problems in the cannabis market, and the fact that the overall financial growth of the biggest players in the cannabis industry has fallen, triggered investors uncertainty. The slide in stock prices can be partially attributed to the market volatility. Regardless of these growing pains, cannabis companies like Aleafia Health Inc. (TSX:ALEF) and Veritas Farms Inc. (OTC:VFRM) show that the industry can still thrive.
Aleafia Health Inc. (TSX: ALEF) signed a final agreement to sell cannabis to a Canadian licensed manufacturer on November 29, 2019. Under the terms of the agreement, Aleafia Health will sell 2,840 kg of dried cannabis flowers at a price of $2.50 per gram, generating revenues of $7.1 million. The transaction entails up to three deliveries, all before January 31, 2020.
The dried flowers were grown at Aleafia Health’s Port Perry open-air farm, which yielded 10,300 kg in 2019. The yield data refer purely to the dried flowers; stems or other parts of the cannabis plant are not included.
“This sale underlines the strength of our outdoor cannabis growing operation. In the near future we will have a substantial stock of high quality outdoor raw materials, which will allow us to accelerate the growth of our primary medical cannabis sales channels not only in Canada but also globally,” said Geoffrey Benic, CEO of Aleafia Health.
About Aleafia Health
Aleafia is a leading vertically integrated, health and wellness focused cannabis company with four major business lines: Cannabis Growing & Products; Health & Wellness Clinics, Cannabis Education and Consumer Experience. The company has supply contracts with e-commerce providers and retailers in the provinces of Canada.
Aleafia Health owns three major cannabis products and growing facilities, two of which are licensed and in operation, including the first major outdoor growing facility in Canada. The company produces a versatile portfolio of commercially proven, high-margin derivative cannabis products, including oils, capsules and sprays. Aleafia Health operates the largest national network of medical cannabis clinics and training centers.
US-based Veritas Farms has shown staggering growth in Q3 2019
Veritas Farms Inc. (OTC:VFRM), a North American cannabis company founded in 2015, in just a few years managed to become one of the most rapidly growing producers and distributors of CBD products. The company’s relentless focus on offering high-quality full-spectrum hemp oil products has paid off. While the shares of the incumbents in the cannabis industry have slumped, Veritas Farms quarterly results demonstrate that the company is set to dominate the cannabis market.
In Q3 2019, Veritas Farms had a record revenue increase of 165%, up to $1,215,810. That’s compared to $459,329 in Q3 2018. Moreover, the company’s gross profit increased by a staggering 468% compared to the same period of the previous year, and amounted to $495,058. Total inventory was up 223% to $5,643,800, compared to $1,746,080 in Q3 2018.
The impressive increase in Veritas’ quarterly figures is the result of a successful combination of aggressive marketing and a broad expansion strategy.
The global cannabis market is gaining momentum thanks to the widespread recognition of the medical and recreational benefits of cannabis. Companies like Veritas Farms, which focus on high-quality products and transparency, are likely to dominate the burgeoning cannabis market.
