Aleafia Health (TSX: AH) this morning released its cultivation results from the 2020 outdoor harvest, revealing that approximately 50,000 plants yielded a total of 31,200 kilograms of cannabis. The majority of the product is slated to be utilized for biomass extraction.
While the company identifies that the yields collected this year, “represents a shift in focus, from producing extractable biomass, towards high quality dried flower tailored to adult-use consumers,” the company identifies that of the harvested flower, 24,000 kilograms is CBD dominant flower destined for the company’s new CBD Wellness Line to be used as “inputs.” The wellness line is to include new formats – meaning it is likely to be extracted and used in various products.
The remaining 7,200 kilograms of flower produced from the harvest is said to contain THC dominant flower, which will be sold largely in the adult-use market, in both pre-roll and flower formats. The 2019 crop comparatively is said to not have included any THC flower.
Finally, the company has highlighted a cash cost per gram of $0.10. However, this is the cost of harvesting the product, which includes labour, consumables, services and staff overhead. The company does not specifically state that this includes the cost of growing the plant. Figures provided are also estimates, as the final 15% of the harvested crop is not finished drying.
Looking to 2021, the company identified that a 30,000 square foot support building for the outdoor crop was completed this year, which will be utilized for propagation purposes in the new year, enabling clones to be started earlier in the year. With underground sprinklers and certain automation features completed this year, the company expects no further significant capital expenditures will be required for the outdoor crop in the new year.
Aleafia Health last traded at $0.54 on the TSX.
Information for this briefing was found via Sedar and Aleafia Health. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
