Raymond James analyst Rahul Sarugaser likes the way Aleafia Health (Aleafia Health Stock Quote, Chart, News, Analysts, Financials TSX:AH) is developing, saying in a company brief to clients on Wednesday that investors should see some better days ahead for both the company and stock. Ontario-based Aleafia Health is a licensed producer of medical and rec cannabis, a provider of direct-to-consumer cannabis delivery and the largest provider of cannabis health services in the country. Aleafia has secured agreements with some of Canada\u2019s largest unions and employers on insured medical cannabis services, including Unifor, the country\u2019s largest private-sector union. In his report, Sarugaser commented on a flurry of recent announcements from Aleafia, starting on June 3 with the company\u2019s first medical cannabis export to Germany. Aleafia sent dried flower grown at its Niagara greenhouse including the company\u2019s THC cultivar Sour Kush and represented a milestone for the company in entering the German legal cannabis market. \u201cThis is AH's second major international export market, after Australia,\u201d Sarugaser wrote. \u201cAH indicates that it will make two further shipments to Australia in the near and medium-term, the first of which should ship in June.\u201d On June 10, Aleafia launched four new large format products under its \u201ceveryday cannabis\u201d brand Divvy. Coming in 14-gram pouches and a ten-gram pre-milled flower offering in the dried flower and pre-roll categories. On the Divvy launch, Sarugaser said AH\u2019s low-cost cultivation at its Niagara greenhouse and Port Perry outdoor grow should give the company a material cost-of-goods-sold advantage relative to most of its peers in the value segment of the cannabis market. Then on June 14, Aleafia launched a peppermint-scented CBD roll-on product for the company\u2019s Noon & Night brand of wellness products, followed on June 15 with the announcement that it had largely completed planting on its 86-acre site in Port Perry, Ontario, expanding on last year\u2019s plant which produced 31,200 kg of dried flower at a cash cost to harvest of $0.10 per gram. \u201cThrough the tremendous diligence and hard work of our operations team, we are poised to take another major step forward this year in outdoor cultivation. With all infrastructure completed and licences secured last year, Port Perry has become a highly advanced, year-round operation that we expect to deliver major improvements in our total yield,\u201d said Aleafia Health CEO Geoffrey Benic in a press release. On the Port Perry grow, Sarugaser said, \u201cThe outdoor harvest empowers AH's adult-use consumer brands such as Divvy, with its large-format value cannabis flower offerings and serves as input material for AH's adult-use derivative products and its CBD-focused wellness line of products (e.g. Noon & Night).\u201d Sarugaser said all of the above events help demonstrate how Aleafia is making progress toward its strategic targets. Looking at the adult-use market, Sarugaser said AH showed over 70 per cent sequential revenue growth in the adult-use channel in the month of May, a sign that the company\u2019s escalation of SKUs for the rec market is beginning to pay off by winning market share. On the medical services front, Sarugaser said he expects to see small contributions during the current second quarter from the company\u2019s exclusive agreement with Unifor, with business ramping up over the second half of the year. The analyst noted that Ford Motor Company was the first major employer to ratify a medical cannabis program for its employees, with participation recently commencing, while Sarugaser sees General Motors as likely among the next to initiate participation. With the update, Sarugaser reasserted his \u201cOutperform 2\u201d rating for Aleafia, while looking ahead, the analyst is calling for AH to generate 2021 and 2022 revenue of $64 million and $102 million, respectively, and 2021 and 2022 EBITDA of $3 million and $10 million, respectively. \u201cAH\u2019s positive adult-use sales data, combined with its typically large, seasonal LP-to-LP sales yielded from outdoor harvests, combined with its steadily ramping Canadian medical cannabis revenues, combined with solid progress with international medical cannabis exports, makes us optimistic about AH's stock during the quarters to come. In our view, AH is on its way up,\u201d Sarugaser said. Aleafia last reported its financials in mid-May, where a drop in the company\u2019s domestic wholesale business saw overall revenue fall from $13.7 million a year ago to $6.2 million for the first quarter 2021. By segment, net medical cannabis revenue up 95 per cent year-over-year to $2.7 million, net adult-use cannabis was up 143 per cent to $1.7 million and net bulk wholesale revenue was down 84 per cent to $1.9 million. \u201cTo further leverage product portfolio expansion, we have only just begun the deployment of our highly differentiated medical cannabis ecosystem through the trailblazing exclusive agreement with Unifor, Canada\u2019s largest private sector union,\u201d said Benic in a press release. \u201cThe ability to service a captive audience of union members who receive insurance coverage for medical cannabis is an important catalyst. We believe that this sets the table for a strong 2021, driven by repeatable, profitable sales in the medical, adult-use and international markets,\u201d he said.