True Leaf Pet Inc., the Vernon, British Columbia, Canada, company that produces and sells hemp-based functional chews for dogs, has completed the purchase of the assets and intellectual property of OregaPet, an award-winning Canadian brand of medicinal products for animals.
Previously, True Leaf and OregaPet announced the signing of a letter of intent on November 3, 2016. The purchase is now complete effective January 1, 2017, with True Leaf acquiring all of OregaPet’s assets.
“This is a major positive step forward for True Leaf Pet,” said Darcy Bomford, True Leaf CEO. “The OregaPet brand and natural-remedy focus align perfectly with our company’s ‘Quality of Life’ vision for our customers and their pets. At the same time, the addition of 10 new items to our product line-up will instantly expand our in-store presence and generate revenue in all of our markets.”
True Leaf Pet paid a total of $200,000—$100,000 in cash and $100,000 in shares—for the brand assets and then agreed to pay $146,409.95 for finished goods and packaging inventory over three years with no interest. The seller and its principal shareholder, TLM Development Ltd., also agreed to enter into a five-year non-competition and non-solicitation agreement covering pet-related businesses.
OregaPet’s product line has attracted industry recognition for its innovation and effectiveness. OregaPet Bed and Body Spray received the 2016 National Nutrition.ca award for Best Pet Product and OregaPet Oil of Oregano received the 2013 Alive Consumer’s Choice Silver Award for Best New Product. Sales of OregaPet products in Canada are approximately $12,000 per month, and the company expects significant growth as it rebrands the line for sale in the U.S. and European specialty pet and natural grocery markets.
“OregaPet is unique in that it is the only brand that has leveraged the widely-recognized medicinal powers of ‘oil of oregano’ and incorporated them into a pet product line. Natural remedies and holistic alternatives to pharmaceuticals are top-of-mind with our customer demographic and we see a real winner here,” said True Leaf CEO, Darcy Bomford.
True Leaf has seen steady growth over the past quarter and expects solid performance as it enters the new year and closes off its fiscal year in March 2017. Key to the company’s strategy are additional line extensions under its successfully established ‘True Hemp’ brand and new product offerings through acquisitions and entries into new market segments.