Aleafia Health (TSX:ALEF,OTCQX:ALEAF) is expanding its presence in the Australian cannabis market as the company confirmed the distribution of its brand new white label medical oils in the country.

On Thursday (November 28), the Canadian licensed producer (LP) told investors it completed the initial run of its premium medical cannabis oil brand, Circle, which will be distributed by Montu Group, its Victoria-based partner.

Aleafia Health said the shipment is expected to be sent out later this year once it receives the necessary permits from Health Canada, the federal regulator of cannabis products.

While the shipment represents the start of Aleafia Health’s international white label production services, CEO Geoffrey Benic said this development will also help establish the position of the company in Australia’s budding cannabis industry.

“With the strength of our existing local distribution network and investments, we are increasing our Australian footprint, as we also deploy our cannabis education platform and clinic operations expertise,” the executive said in a statement.

Montu Group is now offering medical cannabis patients in Australia with Circle’s line of cannabidiol (CBD) and tetrahydrocannabinol (THC) oils.

Christopher Strauch, Montu Group’s managing director, said thanks to the quickly growing network of doctors giving access to quality cannabis products, Australia will serve as a key piece in Montu Group’s international expansion strategy.

Aleafia Health continues movement towards Australian presence

This marks one of a series of moves by the company to push into the Australian market.

In November 2018, the company announced it was starting its global expansion in the country with the proposal of a 10 percent equity stake in CannaPacific, a licensed Australian medical cannabis company based in New South Wales.

Aleafia Health also noted that due to Australia’s proximity to Asia, the partnership could be a plus for the company in terms of giving access to potential future free trade deals.

The deal was solidified in January when Aleafia Health paid CannaPacific AU$100 per share for its 10 percent stake and contributed US$150,000, and it furthered in April when the LP more than doubled its investment after it purchased AU$540,000 worth of ordinary shares in the Australian firm.

Its relationship with CannaPacific paid off earlier this year in July when Aleafia Health got its hands on export permits from Health Canada, allowing Aleafia Health to fully leverage its relationship with the Australian producer.

The permits were a first for Aleafia Health’s plans for global distribution.

As part of its Q3 2019 results, the Canadian producer reported that its partnership with CannaPacific has paid off since its medical cannabis oils became available to patients in Australia.

Shares of Aleafia Health sit at C$0.63 on Tuesday (December 3) as of 11:31 a.m. EST.

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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.