Cannabis products for pets are one of its goals

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Marijuana Producer

This Canadian company sells hemp-based pet products in North America and Europe. It’s now expanding into medical marijuana for humans and potentially cannabis products for pets.


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TRUE LEAF MEDICINE INTERNATIONAL LTD., $0.44 symbol MJ on the Canadian Securities Exchange (Shares outstanding: 99.3 million; Market cap: $43.7 million; TSI Cannabis Quality Rating (CQR): ; www.trueleaf.com), was launched in July 2013 to become a licensed producer of medicinal cannabis for the Canadian market.

The Canadian Securities Exchange (CSE), formerly the Canadian National Stock Exchange (CNSX), is one of the country’s alternative stock exchanges.

Founded in 2013, True Leaf has two main operating units: True Leaf Medicine Inc. and True Leaf Pet Inc.

With construction of its cultivation facility in Lumby, B.C., well underway, the company believes it is in the final stages of approval—subject to a Health Canada inspection—for the production, manufacture, and distribution of cannabis products. It recently finished the first phase of its two-storey, 18,000-square-foot central hub. It features an initial grow area, laboratory services, whole-plant extraction, and the production of therapeutic cannabis products for pets and their owners.

True Leaf Medicine Inc. aims to have its licence to grow cannabis at the Lumby facility as well as a licence to sell cannabis by the end of this year. Again, both of those steps depend on Health Canada approval.

Established in 2015, True Leaf Pet is one of the first companies to market hemp-based products for pets worldwide. The company is initially marketing a line of hemp-seed based supplements for pets. For a cannabis plant to be defined as hemp, it must contain less than 0.3% THC.

Its True Hemp line of chews, dental sticks, and supplement oils are sold in more than 2,000 stores across North America and Europe. These include PetSmart Canada, Pet Supplies Plus, PetsCorner UK, and Amazon. True Hemp products are aimed at providing calming support, promoting hip and joint health, and helping immune and heart functions.

The company recently expanded its total retail distribution to 3,500 stores worldwide with the addition of Pet Planet stores.  Pet Planet will carry True Leaf’s line of chews and supplement oils for dogs in all 75 of its stores in Canada and the U.S.

In the three months ended December 31, 2018, True Leaf`s revenue rose 145.7%, to $652,370 from $265,555 a year earlier. The gains came from the True Hemp business, spurred by an expanded sales force. The company lost $1.2 million, or $0.01 a share, in the latest quarter, compared to a loss of $541,041 million, or $0.04.

The shares peaked at just over $1.90 a share in January 2018 and have moved down since. Revenues from the True Hemp products, gives the company some steady sales, but whether it can successfully sell new pet products containing cannabis is uncertain. The success of its plan to sell medicinal cannabis to humans will require low-cost production and other key factors needed to compete against larger, established producers.

The company does have some prominent board members. True Leaf is chaired by Mike Harcourt, the former premier of B.C. and mayor of Vancouver. Sylvain Toutant, the former CEO of DavidsTea and president of the Quebec liquor board, is also on the board.

True Leaf Medicine International Ltd. has a 3-Leaf Cannabis Quality Rating (CQR). The stock is a speculative buy, but only for aggressive investors who want exposure to the marijuana industry.

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