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True Leaf Reports Record Q2 2020 Financial Results, Names New CFO

Pet Age Staff//December 2, 2019//

True Leaf Reports Record Q2 2020 Financial Results, Names New CFO

Pet Age Staff //December 2, 2019//

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Press release: True Leaf

True Leaf Brands Inc. on December 2 announced its operating and financial results for the fiscal 2020 second quarter ended September 30, 2019.

Q2 2020 and Recent Highlights

  • True Leaf Pet division reported revenues from global sales totaling $706,752 (CAD), a 70 percent increase over the first quarter of fiscal 2020 and a 24 percent increase year over year.
  • True Leaf Cannabis division secured three licenses from Health Canada to cultivate, process and sell medical cannabis for the company’s 18,000 square foot True Leaf Campus facility in Lumby, British Columbia. The licenses allow cannabis production to begin immediately.
  • Implemented cost-saving measures across both divisions and expects to realize these savings immediately and improve upon them going forward.
  • Appointed former TUMI finance executive Mike Mardy, CPA, to the company’s board of directors.
  • Launched its CBD supplements for dogs at Super Zoo 2019, which recently rolled out to pet retail stores in several U.S. jurisdictions and online.
  • Closed a repayment deferral transaction with an entity managed by The Lind Partners, a New York-based institutional fund manager.

“True Leaf is proud to report its strongest quarter in the company’s history,” said Darcy Bomford, founder and CEO of True Leaf. “This record quarter is a result of the successful rollout of our new and expanded natural pet care product lines, our investments into building our team, and success in streamlining global operations. Continuing to execute on our global growth plans has allowed us to meet the high demand for our products in key markets like Europe.”

Selected Quarterly Results of Operations (Expressed in Canadian dollars unless otherwise indicated)

Three Months Ended
Description September 30, 2019
June 30, 2019
Revenues 706,752 414,657
Total operating expenditures (2,242,125) (2,214,825)
Loss and comprehensive loss for period (1,857,602) (1,997,651)
Basic and diluted loss per share (0.02) (0.02)

Bomford continued, “We are also excited to report that on November 22, 2019, our True Leaf Cannabis division became a licensed producer, securing three licenses from Health Canada for our True Leaf Campus facility located in Lumby, British Columbia. The facility was built to meet EU GMP and HACCP standards and will also be able to produce alternative cannabis products such as edibles, topicals, and capsules, creating new opportunities for the ‘Cannabis 2.0’ market in Canada and the fast-growing European cannabis market.”

He added, “The company is actively seeking a joint venture partner to purchase a portion of the True Leaf Campus asset allowing us to lock in a supply of CBD for our pet products and secure a return on our investment.”

“To address current growing pains in the cannabis industry, the company has made a number of strategic business decisions to improve cash flows and reallocate capital to ensure the long-term growth of the company. Cost-saving measures have been made across both divisions; we expect to realize savings immediately and improve upon them going forward.”

Darren Battersby named CFO

The company has appointed Darren Battersby, CPA, as chief financial officer. He succeeds Kerry Biggs, who stepped down from the role effective November 30, 2019, to pursue other opportunities. Battersby will report to True Leaf Chief Executive Officer Darcy Bomford.

Battersby is the former CFO of two publicly traded companies, Rainmaker Entertainment and OneMove Technologies Inc., and previously served with True Leaf as a senior-level financial consultant. He has predominately worked with companies in the start-up and growth phases of their operations and brings experience in business strategy, mergers and acquisitions, and risk management. Battersby earned a Bachelor’s Degree in business administration majoring in accounting and finance from Simon Fraser University. He obtained his designation as a Chartered Accountant in 1997.