Article by Financial Post
Aleafia Health Inc. (TSX: AH, OTC: ALEAF) (“Aleafia Health” or the “Company”) today announced its wholly owned subsidiary Emblem Cannabis Corporation has received a Health Canada Processing Licence (the “Licence”) for its new Distribution Centre (the “DC”). Located minutes from Toronto Pearson International Airport, the DC greatly strengthens the Company’s downstream supply chain, allowing for immediate expansion of same day delivery service, and eventual direct-to-retailer cannabis distribution.
Launched in April 2020, the Company’s AssureHome Delivery has provided patients in the Greater Toronto Area (“GTA”) and surrounding communities with same day cannabis delivery, for orders made by noon on any business day. With the new DC, the Company intends to significantly expand this service. This includes later order cutoff times, weekend and after-hours deliveries, and an enlarged service area. Additionally, it will allow for more efficient order fulfilment of adult-use shipments to provincial government wholesalers.
Located in Vaughan, a suburb of Toronto, the DC is within a two-hour drive of nine million people, or 25 per cent of the Canadian population. Due to this proximity, the Company expects to be able to continue to expand market share in the medical cannabis market.
“COVID-19 has resulted in a rapid expansion in ecommerce, coupled with greater demand for same-day delivery. Yet while supply chain logistics is among the most important cannabis industry competencies, it is also the least developed,” said Aleafia Health CEO Geoffrey Benic. “We plan to capitalize on this through a continued expansion of our AssureHome Delivery platform, which allows us to offer our customers and patients what they want, when they want it.”
The DC builds upon Aleafia Health’s existing production supply chain, which features two low-cost cultivation facilities and a value-added extraction and manufacturing site, all of which surround the GTA. The Licence was granted on February 12, 2021, expires on February 12, 2024, and authorizes cannabis storage and the fulfilment of orders to other licence holders, medical patients, adult-use provincial wholesalers and international customers.
Geoffrey Benic and Chief Operating Officer Greg Rossi were among the founding team members of the award-winning online grocery fulfillment and delivery service, GroceryGateway.com. The pair have also worked as executive consultants on supply chain logistics projects for some of the world’s largest companies including Walmart Inc., Nestlé S.A., Kraft Heinz Company, Campbell Soup Company and Mondelez International.