Cannabis and pet industries represent high-growth industries
Positioned to expand its footprint globally
True Leaf's hemp-seed based products are legally compliant in both the US and Canada
Plans to develop legally compliant medicinal cannabis products
Who is True Leaf?
True Leaf is True Leaf is a cannabis and hemp wellness brand for our furry friends – our pets. The Vernon, BC-based company was founded in 2013 and has two main operating divisions: True Leaf Medicine Inc and True Leaf Pet Inc.
True Leaf Pet is focused on developing and selling supplements and treat for pets, while True Leaf Medicine is aiming to become a licenced producer of cannabis, through the development of cannabinoid-related products for medicinal use.
It's hemp-seed based products are legally compliant in both the US and Canada and is part of its strategy to position the company as a global, cannabis-for-pets brand market leader. True Leaf products are made up of a formula of active ingredients – anchored by hemp – which aim to target a range of pet health issues, such as calming support, hip and joint function and omega 3 supplementation.
The company says that both the cannabis and pet industries represent high-growth industries and that it plans to develop legally compliant medicinal cannabis products that can be sold across Canada, the US and other countries around the world.
How is it doing?
The company recently announced news it was expanding its retail distribution to 3,500 stores in North America, after adding Pet Planet as a retail partner. The company currently has sales in Canada, US, Europe and New Zealand and is in ongoing partnership discussions in Asia.
As part of the deal with Pet Planet, True Leaf’s hemp-based pet supplements will be available in its Canadian and US stores starting as of April.
The company also has new brand identity which will be featured on all products as well as an expanded product line, which will begin being rolled out in May 2019, with rollout to Europe will follow towards the end of the year.
"Key findings revealed that the majority of people interested in cannabis for their pets are between the ages 18-34, and that’s the consumer group True Leaf is addressing with its new branding," the company said in a release.
In addition to the pet supplements, on the cannabis side, the company has a lengthy list of plans on the go, notably its build-out of a portion of the first phase of its 25,000 sq/ft medicinal cannabis production facility located in Lumby, BC, in order to comply with Health Canada’s requirements to become a licensed producer.
The company is aiming to receive approval to sell medicinal cannabis in mid-2019, namely so it can start to sell cannabis-based products, in addition to research and development.
The global pet care market is estimated to be worth US$184.1 billion by 2023. Further to that, the global legal cannabis market is estimated to be an C$83.8 billion market by 2023. True Leaf has is aiming for $300 million to $350 million in revenue over the next five years.
Raised $14 million via equity crowdfunding
In January 2018, the company raised C$10 million through a Regulation A+ public equity offering, two months after the US Securities and Exchange Commission (SEC) qualified its offering statement.
The company also closed a $4 million non-brokered private placement to Canadian investors.
In the Regulation A+ offering, True Leaf offered a total of 14,285,715 common shares at a price of C$0.70 per share, with a minimum subscription amount of C$350 (or 500 shares) per investor. The use of Regulation A+ allowed True Leaf to offer and sell its common shares to retail investors and institutional investors.
It was the first Canadian-listed company to conduct a successful Regulation A+ offering.
CEO says new brand and expanded product line is the first step
"Our new brand and expanded product line is all about reigniting your pets’ natural zest for life: more wags per tail, more chase per ball, and more ruff per tumble,” said founder and CEO Darcy Bomford. “We are inspired by the unconditional love our pets give us every day. They are our constant companions and trust us to keep them safe and healthy. Our purpose is to return that love through natural preventative supplements that harness the healing powers of cannabis and other active plant-based ingredients to reduce joint pain, boost immunity, and alleviate anxiety.”