Aleafia Health Inc. (OTCQB:ALEAF) (TSX:AH) released its audited financial results for the three and twelve months ended March 31, 2023, revealing net revenue of CA$42.8 million ($32.2 million), a decrease of 0.6% compared to CA$43.1 million in FY 2022.

FY 2023 Financial Highlights

• Gross profit was CA$6 million compared to gross loss of CA$12 million in FY 2022.

• Net loss and comprehensive loss was CA$34.6 million compared to a loss of CA$169.9 million in FY 2022.

• Adjusted EBITDA was negative CA$200,000, representing a CA$18.7 million improvement over FY 2022.

• Cash and restricted cash, at the end of the period was CA$627,000

Aleafia CEO, Tricia Symmes stated: "The Aleafia team is thrilled about the proposed business transaction with Red White & Bloom (OTCEM:RWBYF). The Canadian cannabis market is a rapidly changing industry, and we believe we will be well positioned with our new partner RWB to capitalize on value-added synergies. RWB has award-winning brands and IP and with Aleafia's Divvy brand and proven cultivation, manufacturing, and distribution capabilities, we expect to create one of the most dynamic cross border companies in the industry."

Aleafia CFO, Matt Sale stated: "This last fiscal year was a year of focused execution to drive profitable top-line growth, expand our margin profile by tightening up our supply chain, and cost rationalization to right size our fixed cost profile to fit our size and scale. We are very proud to have achieved this while continuing to allocate capital expenditures prudently and achieving adjusted EBITDA profitability for three consecutive quarters. The improved financial flexibility and capacity of the combined company will enhance the ability to execute on organic and acquisitive growth strategies."

Photo by Esteban López on Unsplash

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