If you’re watching stocks in the growing marijuana sector, you might want to keep an eye on Aleafia Health Inc (V:ALEF).
Yesterday, Aleafia announced it has received conditional approval to move from the Toronto Stock Exchange’s Venture index and list its common shares on the TSX. That announcement alone sent the stock up almost 4 percent, closing up 1.71 percent on the day.
Last month, the rapidly growing Ontario-based medical marijuana producer was named the TSX’s Venture 50’s top performing company of the year, marking the first time a cannabis company captured the honour.
What could this mean for the stock?
It could signal the company is poised to build on the momentum that has been growing in the sector since before marijuana was legalize in Canada last October.
Currently, Aleafia has a market capitalization of $375.15 million. Its stock has seen a 244.93-percent increase over the course of the last year, which was been mark by a spike to $3.97 a share in September 2018, just days before marijuana was legalized. Yesterday, it closed at $2.38 a share.
“The rapidly maturing cannabis industry is attracting greater interest from institutional investors,” Aleafia Health chairman Julian Fantino said in a statement issued yesterday. “A TSX listing will form an important element of the Aleafia Health story as we aim to broaden our shareholder base.”
Graduating to the TSX could proof to be a major boost for Aleafia, which operates the country’s largest network of referral-only medical cannabis clinics through a subsidiary. The company is aimed at being “Canada’s leading patient-focused health-care enterprise offering medical cannabis care.” It’s mission, according to the firm’s statement, is to build a global cannabis brand.
Final approval of the stock’s move to the TSX is conditional upon Aleafia finalizing its acquisition of Emblem Corp (V:EMC), a medical marijuana producer. On March 6, Emblem shareholders approved the deal with Aleafia, which creates the leading network of Canadian medical cannabis centres and clinics with 60,000 patients, provides a high-value portfolio of oils, capsules and sprays, and increases Aleafia’s production and cultivation facilities.
Emblem shares yesterday jumped to $1.91 before dropping today on the market open. The company has a market cap of $239.06 million.