In an exclusive interview with CFN media, Aleafia Health Inc (OTCMKTS:ALEAF) CEO, Geoffrey Benic has offered discussed the acquisition of Emblem Corp (OTCMKTS:EMMBF) which makes them a leader in the medical side of the growing cannabis industry. The acquisition creates the largest cannabis clinic network in Canada with over 138,000kgs annual planned activation capacity.
Why Emblem Corp?
The CEO indicated that they are looking at ways of accelerating their business strategy. He said that they expect to leverage their success in physician-led therapy which has grown patient loyalty because of direct contact. The acquisition of physical medical clinics is a means of differentiation from other medical cannabis transactions where products are purchased from the website and for them they want to offer something different through direct contact with a physician.
Because of the direct contact to their clients, the company has managed to garner the most significant patient base in the country of over 10 million in clinic operation expertise and proprietary data points which is significantly valuable to their global partners. There is growing consolidation of companies in the cannabis industry, and the acquisition of Emblem Corp is part of the efforts by the company to acquire companies that have complementary assets and capabilities as well as excellent management.
Meeting the company’s synergies
Mr. Benic says that Emblem Corp has a strong product portfolio in medical cannabis industry which includes sprays, oils, and capsule and since there is a short supply of such products the company is looking to leverage the opportunity to ensure patients access the supply and they can do so by consolidating the supply market. He adds that Aleafia has the clinic, patients, and cultivations and they can realize their synergies with Emblem bringing product expertise such as extraction as well as processing and labeling.
Closing on the acquisition will boost Aleafia’s distribution platform enabling them supply to top cannabis retailers such as Fire and Flower and Acnos Pharm. The company currently has a 15,000kg standpoint distribution agreement with CannTust as well as with other retail brands such as Aaron Serruya and Serruya Private Equity.