Pet hemp brand True Leaf Brands Inc. (CSE: MJ) (OTCQX: TRLFF) (FSE: TLA) announced its financial results for the fiscal year ending March 31, 2019, including revenues of $2.3 million all reported in Canadian dollars. This was a 65% increase over the previous fiscal year and a 54% increase of fourth-quarter sales year over year, from $386,733 to $595,261.
Revenue growth was driven primarily by the increasing number of top retailers selling True Leaf Pet products, which are now in more than 3,500 stores across North America and Europe, including at Pet Supplies Plus, Pets Corner (U.K.), Das Futterhaus (Germany), and PetSmart (Canada) locations. The company’s European operations contributed $412,551 of the total revenue for this annual period, a 148% increase compared to $166,320 the prior year.
The loss for the year was $5.5 million versus last year’s loss of $3.9 million. This was a loss of six cents per share both basic and diluted. Total operating expenditures were $6.8 million compared to $4.8 million the prior fiscal year. Operating expenditures consist primarily of selling and marketing, administrative and office, research and development, and share-based compensation. The increase was driven by higher selling and marketing, and office and administration expenses, offset by lower share-based compensation.
“We continued to report record sales growth in fiscal 2019, with revenues increasing by 65% to C$2.3 million as demand for natural, plant-based pet care products continues to drive our growth,” said Darcy Bomford, Founder and Chief Executive Officer of True Leaf. “During the year, we also took important steps to build long-term and sustainable value in True Leaf. This included expanding our retail distribution footprint to over 3,500 stores worldwide. In conjunction with this, we strengthened our liquidity position through a successful financing and warrant exercise.”
During the year the company closed a convertible security funding agreement for gross proceeds of $4.5 million with The Lind Partners, a New York-based institutional fund manager. In May 2019, True Leaf received nearly $1 million (CAD) in proceeds through a successful warrant exercise.
Post Fiscal Year End
The company listed the following activities that occurred after the company closed its fiscal year-end books:
- Former Mars Petcare executive Kevin Cole joined True Leaf as President of True Leaf Pet. Darcy Bomford will continue as a director and Chief Executive Officer of True Leaf Brands Inc.
- True Leaf signed its first cannabidiol (CBD) supply agreement with Kentucky-based Atalo Holdings, Inc. for the supply of farm-fresh CBD oil to support the Company’s debut line of CBD products for pets, to be unveiled this August at SuperZoo 2019.
- In June 2019, True Leaf further expanded its European distribution through agreements with OSCAR Pet Foods in the U.K. and with Pocurull in Spain and Portugal.
- The company announced a corporate name change to True Leaf Brands Inc.
- True Leaf signed a non-binding Memorandum of Understanding with international pet care distributor Eagle Vet, launching True Leaf’s expansion into the Asian market.
- Former Petco executive Allen Fujimoto joined True Leaf as Senior Vice-President, Operations.
- True Leaf signed a supply and purchase agreement with top online cannabis marketplace Namaste Technologies to expand its direct-to-consumer distribution network.