Aleafia Health has announced that it has signed a new European cannabis distribution partner, significantly bolstering its record USD$1.2 million year-to-date sales in its growing international channel.
The company has stated that the deal represents a one-year, approximately $1 million contract.
“This new announcement is very significant: it builds upon advancements made in August 2022 when the Company revealed a two-year $4.6 million European sales commitment and broadens our international reach,” said Aleafia CEO Tricia Symmes.
Read more: Clever Leaves to wind down Portugal operations
“The company is involved in overseas markets because international success leverages both its products and brands, and the addressable European cannabis market is high potential, so this relationship provides another gateway into further European expansion in the medical and potential recreational markets.”
CFO, Matt Sale, added: “These international agreements are an important part of our strategic plan for growth and profitability.
“These activities grow revenue, are not subject to excise duties, lock in attractive margins, and improve our overall cash conversion cycle and net working capital performance, continuing to deliver against one of our core sale pillars for FY 2023.”
Aleafia Health has also announced that David Pasieka, a director since September 2021, will become its Board Chair, following the 30 January retirement of Mark Sandler. Sandler has served as Chair since July 2021 and is Aleafia Health’s longest serving director having being appointed in 2018.
Pasieka, a seasoned public company executive, with extensive formal and board level experience, has served on Aleafia’s FAC and HRC committees and currently serves on the Board of Oakville Hydro/Oakville Enterprise Corporaiton as well as serving on the Faculty of the Caribbean Governance Institute.
Symmes added: “The company has been very grateful for Mark Sandler’s counsel and support of the vision for the future as we transitioned from a bulk wholesale cannabis provider into a branded adult-use, medical and international producer. Under his guidance, the Company consistently increased market share, achieved a top 10 standing in multiple formats and markets for Divvy, negotiated the amendment of its $37.3 Million Convertible Debentures while securing a $5.6 million equity financing in June 2022.
“Since becoming CEO in February 2022, I benefited from Mark’s thoughtful insights in our concerted drive toward Adjusted breakeven EBITDA profitability, which was achieved two quarters ahead of projections. Now David Pasieka will build on those accomplishments, guiding us to further growth and enhanced profitability.”
