On September 24, Aleafia Health (ALEF) (ALEAF) announced that it expects to report positive net profits in the third quarter. The medical cannabis company’s management also provided an update on its production and revenue growth. It stated that it had added 3,000 registered medical cannabis patients since July to increase the number to 10,000 patients. Aleafia also announced that its products are now available in Australia.
In the press release, Aleafia’s CEO, Geoffrey Benic, stated, “Through prudent capital allocation, coupled with strong cannabis revenue growth, we now expect to deliver the first profitable quarter in Aleafia Health’s history, a major milestone.”
He added, “This will mark our second consecutive quarter featuring both substantial expense reductions and increased revenues as we continue to drive towards sustainable, compliant growth that will deliver real benefits to our stakeholders.”
Aleafia stock rises
Aleafia’s announcement appears to have impressed investors, as not many cannabis companies have reported net profits until now. Yesterday, Aleafia’s share rose to a high of 0.97 Canadian dollars before closing the day at 0.93 Canadian dollars, a rise of 2.2% from its previous day’s closing price. Yesterday was a tough day for other cannabis stocks. Cannabis ETFs the ETFMG Alternative Harvest ETF (MJ) and the Horizons Marijuana Life Sciences Index ETF (HMMJ) were down 4.6% and 5.2%, respectively.
Despite yesterday’s increase, Aleafia stock is down 35% this year. The company posted its second-quarter earnings results on August 14. During the second quarter, the company reported YoY revenue growth of 159%, while its revenue from cannabis increased 377%. The company reported EBITDA of -2.7 million Canadian dollars.
Aurora Cannabis stock has been under pressure since its reported lower-than-expected fiscal 2019 fourth-quarter revenue on September 11. On September 20, MKM Partners started covering the stock with a “sell” rating, which also contributed to the fall in the company’s stock price.
Innovative Industrial Properties reported an impressive second-quarter performance on August 8. During the quarter, the company’s revenue was better than analysts’ estimate, and its EPS were in line with expectations. Its strong second-quarter revenue appears to have led to a rise in its stock price.
Although Curaleaf’s second-quarter earnings were below analysts’ estimates, its stock rose on the bullish outlook provided by its management. Recently, the company introduced cannabis tablets in Florida. Read more on that in Curaleaf Comes Out with Cannabis Tablets in Florida.