In late January, we issued an update on Aleafia Health Inc. (ALEF.V) (ALEAF) and we hope that you have been watching this company.

Aleafia Health has been nothing short of an execution story and has been laser focused on growth. Through a combination of inorganic and organic growth initiatives, the company has significantly advanced its fundamental story and the market has taken notice of this. Today, we have provided an update on the emerging medical cannabis leader and will continue to closely monitor this opportunity

Laser Focused on the Cannabis Data and Research Opportunity

Earlier this month, Aleafia Health appointed Dr. Graham Merry as the company’s first Product Data Science Fellow. Leveraging the company’s proprietary 10 million point medical cannabis patient dataset, Dr. Merry will lead Aleafia Health’s ongoing medical cannabis research. This was a significant appointment and these efforts will be aimed at developing evidence-based, proprietary treatment methods and products for chronic illnesses including pain, insomnia, anxiety and eating disorders.

Aleafia Health also appointed Dr. Taylor Lougheed as Physician Lead for QI/QA of Clinic Operations. Dr. Lougheed has an extensive history in cannabinoid prescribing as the lead physician at the Canabo Medical Clinic in Ottawa, and holds a Master’s degree in Healthcare Quality from Queen’s University. Dr. Lougheed will help drive efficiencies across a growing clinic network and leverage Aleafia proprietary research data to optimize clinical decision making to maximize cannabinoid therapy outcomes for patients.

The appointment of the Product Data Science Fellow is part of a global initiative by Aleafia Health to build an integrated, scalable cannabis consumer experience, leveraging the company’s in-house, executive leadership experience at multi-billion dollar eCommerce and IT companies.

Current Aleafia Health research initiatives include an insomnia study in partnership with Cronos Group (CRON.TO) (CRON), a cannabinoid pharmacogenetics study with Guided 420 Genetics and U.S. based AKESOgen, and a recently published study in the journal Cannabis and Cannabinoid Research on cannabis and benzodiazepines.

During the third quarter of 2018, Aleafia Health generated $0.6 million in research revenue and this was primarily driven by medical cannabis companies subscribing to the company’s proprietary medical cannabis patient dataset. Aleafia Health tracks all patient interactions with referring doctors, nurse practitioners and educators from diagnosis, treatment, monitoring, and continuous learning.

This provides Aleafia Health with a major differentiator and we are favorable on this aspect of the business. Over the next year, we expect this to become a more significant revenue driver as demand for medical cannabis data increases. With more than 50,000 unique patients, the amount of data being generated is significant and we believe that the market underappreciates this growth vertical.

Aleafia Health is Creating a Medical Cannabis Leader

There are a limited number of companies that are focused on the cannabis data opportunity like Aleafia Health and we are bullish on this aspect of the story. Demand for the type of data that the company has been generating is increasing and we are monitoring how the team executes on this opportunity.

The acquisition of Emblem (EMC.V) (EMMBF) enhances Aleafia Health’s focus on the cannabis data opportunity and this is something to monitor. The proposed acquisition creates a new Canadian medical cannabis leader that will operate the country’s largest national clinic network that will generate significantly more medical cannabis data.

When you combine Aleafia Health with Emblem’s GrowWise Health subsidiary, you have a leading Canadian clinic network that has access to 40 national medical clinics and education centers that have served almost 60,000 patients. This acquisition significantly improves Aleafia’s position in the medical cannabis market and we are bullish on the growth prospects of the combined company.

An Opportunity that Investors Need to be Watching

When we look at Aleafia Health, it is hard to not get overly excited and we want to highlight the most attractive aspects of the story. First, the company is in the middle of a major expansion that is focused on the Canadian and international opportunity. Second, Aleafia Health is highly focused on the medical cannabis opportunity from a data standpoint and represents a multi-faceted growth opportunity. Finally, the company is well capitalized and led by a management team with a proven track record of success.

Aleafia has significant catalysts for growth and we think the acquisition of Emblem will prove to be a major value driver. The acquisition will support the company’s relationship with CannTrust and will provide attractive leverage to the European cannabis market via Germany. There are countless synergies that can be recognized through this acquisition and we are closely monitoring this opportunity.

Although the shares have come well off its recent lows, Aleafia has come well off its 2018 highs and this is something we are watching. To learn more about Aleafia and to stay up to date with this opportunity, please email support@technical420.com.