True LeafÂ (CSE:MJ) (OTCMKTS:TRLFF) is a cannabis and hemp wellness brand for our furry friendsÂ â€“ our pets.Â The Vernon, British Columbia (BC) based company was founded in 2013 and has two main operating divisions: True Leaf Medicine Inc and True Leaf Pet Inc.Â
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 CanadaÂ 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 â€“ anchored by hemp â€“ which aim to target a range of pet health issues, such as calming support, hip and joint function and omega 3Â supplementation.Â
The company says that both the cannabis and pet sectors represent high-growth industries for which it plans to develop legally compliant medicinal cannabis products thatÂ sellÂ across Canada,Â the US and other countries around the world.
In addition to being in more than 3,500 stores across North America and Europe, the companyÂ is seeing notable growth online with direct-to-consumer sales.
True LeafÂ has had a year of growing its ever-expanding footprint.Â The company increasedÂ its retail distribution outlets to 3,500 stores worldwide with the addition of Pet Planet as a North American retail partner.Â The firm currently has sales in Canada, the US, Europe and New Zealand and Asia.Â
One of True Leaf’s most notable deals in recent months was withÂ Namaste Technologies IncÂ (CVE:N) (OTCMKTS:NXXTF) in late June,Â with an agreement which will see True Leaf distribute its pet products through Namasteâ€™s online dispensary platform.Â
True Leafâ€™s hemp-based supplements will be the first pet product sold on Namasteâ€™s platform CannMart.com as part of the firm’s strategy to expand its direct-to-consumer distribution network.
â€śWeâ€™re confident Namasteâ€™s customers will embrace our products to improve the quality of life of their pets, just as they do with the medicinal cannabis products that improve their own quality of life,â€ť said True Leaf CEO Darcy Bomford. â€śWe also look forward to working with Namaste as a key distribution partner when we launch our line of legally-compliant CBD products for pets.â€ť
The two companies will donate 10%Â of all profits from the first month of sales, which are expected later in 2019,Â to local animal rescue shelters as part of True Leafâ€™s Return the Love campaign.
The firm also announced it was bringing its hemp-based products to Korea, signing a memorandum of understanding with Eagle Vet, a pet health care distributor with operations in South East Asia, Africa and the Middle East.Â
Eagle Vet currently distributes to 5,000 retail stores and veterinary clinics in the country, which has a pet care sector projected to grow to US$4.8 billion by 2020, according to Statista.
The firm also inkedÂ distribution agreements with OSCAR Pet Foods in the UK and with Pocurull in Spain and Portugal.Â
True Leafâ€™s hemp-based products for dogs and cats will be distributed via OSCAR Pet Foodsâ€™ home-delivery service to 30,000 pet owners across the UK and will available in 1,000 retail stores in Spain and Portugal as part of an exclusive distribution agreement with organic pet-food producer Pocurull.
The two are natural additions to True Leafâ€™s growing retail distribution network in Europe, which includes Arcaplanet, a leading pet-retail chain in Italy, Pets Corner in the UK and Das Futterhaus in Germany.
For the fiscal year ended March 31, 2019, the company posted revenue that increased by 65% to C$2.3 million, its highest annual revenue to date, on the back of a rapidly growing distribution network.
During the fiscal year, True Leafâ€™s True Hemp product line received the National Animal Supplement Council (NASC) quality seal, one of the highest quality certifications in the pet industry.
The company has cash in the bank, having closed a convertible security funding for C$4.5 million with Lind Partners, a New York institutional fund. In May, the company also received nearly C$1 million in proceeds through a successful warrant exercise.
Earlier, the company raisedÂ C$10 million through a Regulation A+ public equity offering, two months after the US Securities and Exchange Commission (SEC) qualified its offering statement.Â 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.
In addition to the pet supplements, on the cannabis sideÂ the company has a lengthy list of plans on the go, notably building outÂ its 25,000 sq/ft medicinal cannabis production facility located in Lumby, BC, in order to comply with Health Canadaâ€™s requirements to become a licensed producer.Â
The company is aiming to receive approval to sell medicinal cannabis, so it can start to sell cannabis-based products, in addition to doing research and development.
Looking forward, True Leaf is tapping into two very lucrative markets. 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.Â Over the next five years, True LeafÂ is aiming for C$300 million to C$350 million in revenue.
“The pet food industry is a bit of a sleeping giant. A lot of people don’t realize how huge it is. It’s $100 billion worldwide now and in a few years it’s expected to be $200 billion. If you look at the pet and the cannabis industry, right now they are pretty close to being the same size”, said True Leaf CEO DarcyÂ Bomford.
Contact Katie Lewis at [emailÂ protected]