Aleafia Health has issued an update on strategic growth initiatives.
“Aleafia Health’s focus on disciplined, sustainable and scalable growth is more important now than ever with the launch of two major initiatives to adapt to patients’ needs during COVID-19,” said Aleafia Health CEO Geoffrey Benic. “With investments made over the last two years in virtual clinic services, we have been able to quickly transition to completing 100 per cent of physician-led patient consultations remotely following the temporary, voluntary closure of our physical clinic locations. Likewise, we have accelerated the launch of our last-mile home delivery to ensure patient access to medicine delivered directly to their own homes.
“In the last week, we have commenced operations at our newly licensed Niagara Facility. At the same time, we are ready to begin the 2020 outdoor cultivation season and are preparing to commence operations in our Paris Facility’s Phase II expansion, the crown jewel of our production ecosystem.”
- Deployment of Virtual Clinic Services: On March 16, 2020, patients at Aleafia Health’s network of medical cannabis clinics were notified that all physical clinic locations would be voluntarily and temporarily closed during the COVID-19 pandemic and that all patient consultations would be conducted through virtual clinic services. Since that time, approximately 3,300 patient consultations have been completed entirely remotely, ensuring that all patients maintain access to safe, secure and convenient cannabinoid therapy. As announced on October 17, 2018, the Company previously invested in the technology and training to offer scalable virtual clinic services.
- Last-Mile Home Delivery: In recognition of the need for safe, contactless delivery of medical cannabis, the Company advanced its already planned introduction of last-mile home delivery for medical cannabis products. Following a soft-launch last week, the Company expects to make last-mile home delivery publicly available for Toronto-based registered Emblem patients next week.
In March, in addition to temporarily closing physical clinic locations, management enacted a series of measures to ensure business continuity and the safety of team members, including:
- Barring all visits to production facilities and cancelling all non-essential employee travel
- Increased cleaning frequency throughout facility common areas and enforcing work from home for all non-production essential employees
- Adjustment to shift start times, shift length and break structure to eliminate the crossover between groups of employees
Production Ramp-Up & Preparation to Commence Outdoor Cultivation
All three of the Company's production facilities continue to operate. To date there have been no material negative impacts on production due to COVID-19. The Company continues to expand core revenue-generating operations, with new hires completed in product sales, quality control and production in the last 30 days.
- Niagara Facility: On April 6, 2020, cannabis cultivation operations began at the newly licensed Niagara Facility. Cannabis starter plants for the 2020 outdoor cultivation season are currently growing at the facility and will be transported to the Port Perry Facility in May. In addition, cannabis intended for sale in the adult-use and medical markets is also being grown at the Niagara Facility.
- Port Perry Facility: The Company is well positioned to commence its outdoor cultivation season at the Port Perry Facility as soon as weather permits, with an expected start in May. The Port Perry Facility outdoor site features 86 acres of total cultivation area, including the 60-acre Phase II expansion. The expanded outdoor site is plant ready pending approval of the required Health Canada licence amendment.
- Paris Facility: At the Paris Facility, production volumes have increased as the Company aims to meet a recent increase in medical cannabis demand. All medical cannabis products are in stock and production is being ramped up to build increased inventory for both the medical and adult-use markets.
In addition, the licence amendment application for the Paris Facility’s Phase II expansion is undergoing a final review with Health Canada. The Company is now preparing to commence operations in the expanded site, which is entirely dedicated to the extraction, production, packaging and distribution of finished cannabis products.
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