Maven Brands Inc TRLFF

Ruff progress in a small cannabis town BC

[BCStock]

Just how special and rare is a Canadian “triple” cannabis  “Medical, Processing and Cultivating licence”?  True Leaf is a recent recipient.   There are now 127 Canadian companies holding these same  triple licences with more being issued by the Government of Canada every Friday.  Several hundred other companies  are now holding single or double licences for other categories including Extraction, Nursery and of course Cultivation.  It is a very crowded field with more players entering the scene.  Hence the devastation for investors who played the cannabis markets in 2019.  True Leaf were featured in a recent CBC TV comedy show about people struggling in small towns due to downturns in the local economy.  In Lumby B.C., home of True Leaf. many locals invested heavily in the pet cannabis dream presented by True Leaf.  With share values heading down to penny stock levels and looming major cash shortages it is stressful for the whole town.
  True Leaf have published their financial results ending this past September.  Cash on hand situation is dire ($918,000 cash versus $4,394,00 in liabilities as of September)) , so they definitely need to sell off assets, attract new investors , or a brilliant joint venture to survive into 2020.  Looking at the assets and liabilities, the realistic value of a True Leaf share right now is $0.09 (nine cents).  Yes, they continue to grow their sales, but at ever increasing costs and proportionately higher continuous losses.  The scary scenario that evolved to reality on Nov 26/19 was the issuing of 833,333 new shares at $0.12 each to keep “da boyz” content who have loaned them what will add up to $5.4 million. There was no cash to make the interest payment, so was once again time to print more shares. The little guy keeps getting diluted out of the picture ……
   October was the start of the True Leaf CBD treat sales into the USA grey market, so let us all hope True Leaf will make some progress.  As long as they make no medical claims and continue to stay within the realm of treats they will avoid FDA sanctions.  Still no movement in Canada to legally permit CBD/THC pet meds or foods unless they have a drug identification registration.  Ruff. Tough business…….

[yesimakeit]

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[candele]

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