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TORONTO, June 10, 2019 (GLOBE NEWSWIRE) — PRESS RELEASE — Aleafia Health Inc. has been granted approval by Health Canada for outdoor cannabis cultivation. On June 7, 2019, the company’s wholly-owned subsidiary Aleafia Farms Inc., was granted a new Standard Cultivation License issued under Health Canada’s Cannabis Regulations at the company’s Port Perry facility.

“Our promise made last year to cultivate outdoors in 2019 is now a reality,” said Aleafia Health Chairman Julian Fantino. “We will continue to lead the way in low-cost production. This milestone exponentially increases our total cultivation footprint while securing product supply for our medical cannabis patient base.”

In anticipation of receiving Health Canada approval, the company dedicated growing rooms at its Paris Facility to propagate starter clones with strains particularly well-suited to outdoor cultivation. Approximately 13,000 of these starter clones are now on-site at Port Perry. The license allows for cannabis cultivation in Zone 1 of the company’s outdoor grow facility, with 292,000 square feet of immediate, licensed cultivation area. The company expects to receive a Health Canada license amendment for the remainder of the total 1.1-million-square-foot facility in the next month. In anticipation of the amendment, some of the 13,000 starter clones will grow in pots in the licensed Zone 1 area and be moved to, and planted in, the additional area of the facility upon receipt of the Health Canada license amendment.

The outdoor grow operation will be overseen by Aleafia Health’s proven cultivation team with three master growers, which together have led the build-out and operations of seven cannabis cultivation facilities.

“Receiving an outdoor cultivation licence is one thing. Having cannabis plants in the ground within two days of receiving this license is an entirely different matter,” said Aleafia Health CEO Geoffrey Benic. “Our team’s performance continues to validate our executional capabilities while benefiting from the robust supply chain network and talent pool across our three cannabis production facilities. We expect this increase in our cultivation capacity will significantly accelerate our ability to grow, produce and sell high-margin, value added products to cannabis health and wellness consumers in Canada and globally.”

It is intended that the cannabis grown at the company’s outdoor grow facility will be transported to its Paris processing facility, for the production of high-margin, value-added cannabis health and wellness products. The company’s recreational and medical products are expected to be sold via Aleafia Health’s robust domestic and international distribution platform, including:

• The company’s national network of Canabo Medical and GrowWise Health clinics and education centres with over 60,000 patients seen to date
• International distribution to burgeoning medical cannabis markets Australia and Germany via existing partnerships
• Provincial supply agreements with four provinces representing two-thirds of the Canadian population