Post by
BCStock on Aug 02, 2019 12:08am
True Leaf Brands Annual Information Form should be read
True Leaf published on July 29/19 their Annual Information Form ending Mar 31/19. It is available from the SEDAR web site and is great reading if you truly want to understand where True Leaf think they are heading and the risks involved. This is a high risk developmental stage company currently unable to derive any revenues from a proposed cannabis for pets revenue stream. Stock investments will follow the classic zoom up on hype and promotion and tumble down on reality of revenues not growing fast enough to cope with rising monthly expenses. Looking at the $5.5 million loss for 1 year ending March 2019 versus revenues of $2.3 million and remaining working capital of 2.2 million they potentially could be very short of money by the end of this year. They clearly state there will be a need to raise more investment $$$$$, which will result in further share dilution. Add to this a big private creditor who will want their $4.5 million back in Feb 2021 and it is getting very tight in my opinion. However, this company has a very strong proven sales force who may yet push their 3rd party TL pet products into another 3500 stores and save the day. High drama in Lumby BC land. The TL Cannabis section of the Annual Information Report stuggles to explain clearly how they will make money as Pet cannabis products are still illegal. They even look at offshoot revenue streams such as moving the surplus pet dope into the human market or renting space in their grow-op to accomodate the BC micro-grower category. Sort of a landlord struggling to figure out if bringing in pot tenants will help with survival. Maybe with one big paradigm shift True Leaf will still grow on to be a superstar with focus on the Pet CBD world. Many investors hope so. Look for a stock price bump up when they finally are awarded their Canada federal Producers Licence.
Comment by
LWillingdon on Aug 02, 2019 10:35am
Great post where is this from.