True Leaf Med. MD&A - English - November 29, 2016PLAN OF OPERATIONS:
The Company, through TL Medicine, is seeking to become a licensed producer of medical marijuana under Canada's Marijuana for Medical Purposes Regulations (“MMPR”) program administered by Health Canada.
The Company received a ‘Ready to Build’ approval for its first licensing application in January 2014; however, issues arose with the facility location and local zoning.
In March 2014, the Company secured a second location, and on April 8, 2014, the Company submitted a second licensing application.
As of September 30, 2016, the Company does not have a license with the MMPR and no products are in commercial production or use.
The Company will be required to satisfy additional obligations in order to qualify including the completion of a compliant facility on a parcel of leased land in Lumby, British Columbia.
There is a significant risk that the Company will not receive an MMPR license, thus rendering the Company unable to proceed with its business model.
The Company continues to work diligently to comply with all of the requirements of Health Canada.
While True Leaf waits for Health Canada to approve its application for a license to produce and distribute medical marijuana in Canada, it is establishing a niche in the North American cannabis industry by focusing on the quality of life for pets with the True Leaf Pet brand.
The Company is currently looking for strategic investment partners for up to $3,000,000 private placement of which the company has raised $ 737,982 in the first quarter of 2017
The Company’s short-term business objectives for the next 12 months are:
1. Successfully complete up to a $3,000,000 private placement which will be used to develop line extensions and increase market share for the company’s hemp-based functional chews in the US, Canadian and European markets.
2. (conditional to Health Canada pre-licensing inspection approval) Complete a $2,000,000 financing to commence construction of production facilities and obtain final approval from Health Canada to be a licensed producer of medical marijuana.
The Company’s long-term business objectives are:
1. For the natural pet market:
a. Carve a niche in the global pet industry with a hemp-focused family of products that are sold in the pet specialty, mass-pet, veterinary and food/mass/drug market segments.
b. Review and assess the feasibility of line extensions and/or acquisitions that will increase sales and brand value in the pet specialty, mass-pet, veterinary and food/mass/drug market segments.
2. For medical marijuana:
a. Achieve commercial production and distribution of medical marijuana.
b. Increase its customer base annually through an effective marketing campaign c. As demand for the product increases, seek to expand production capacity and increase expenditures on research and development.
Sales have increased by 300% from the previous quarter, a direct result of additional sales to Canadian distributors and product launched new US distributors.
Product inventory increased to $78,811 to service immediate sales to the US and Canada customers.
SHARE CAPITAL:
The Company’s authorized share capital consists of an unlimited number of common shares without par value and an unlimited number of preferred non-voting shares without par value.
As of November 29, 2016, the total number of issued and outstanding common shares was 53,263,203 common shares and there were no preferred shares outstanding.
Warrants :
As at November 29, 2016 the following warrants are outstanding: 2,155,063
Stock options :
As at November 29, 2016 the following stock options are outstanding and exercisable: 3,100,000
Full report available here:
True Leaf Med. MD&A - English - November 29, 2016