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True Leaf Brands Creates Path to Market for BC Craft Cannabis

Stockhouse Editorial
3 Comments| May 27, 2021

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Licensed producer True Leaf is zeroing in on an enormous opportunity - capturing consumers from the multi-billion-dollar grey market.

Spending on cannabis products in the third quarter of last year reached $824 million (CAD) while unlicensed sales,Click to enlarge according to many industry experts, are estimated to be an even larger share of the market.

Licensed producer True Leaf Brands Inc. (CSE: MJ, OTC Pink: TRLFF, Forum) is offering a pathway to market for craft cannabis and it runs through their 40 acre site zoned for cannabis production.

True Leaf is preparing to launch a program to provide seed-to-shelf solutions for craft growers. The program will provide a full suite of in-house production, processing, and packaging services for growers with a micro-cultivation license.

Stockhouse Editorial caught up with the Company's Chief Executive Officer, Darcy Bomford, to find out more about the company's plan to bring quality craft cannabis to consumers by partnering with micro-cultivators:


Thank you for joining us. To begin, for investors who are new to your story, could you tell us more about your market opportunity and how it fits into the current state of the cannabis industry?

Today's consumers have a strong preference for craft-grown cannabis. They are disappointed in the result of legalization in 2018 - retail markets flooded with low-quality, over-priced, and often irradiated cannabis.

In the same way craft beer, artisanal coffee or estate wines are sought after, consumers are demanding carefully cured craft cannabis from experienced small batch growers, because it provides a better overall experience.

True Leaf is partnering with craft growers (micro-cultivators) to create a path to market for their product - the small-batch, premium cannabis consumers are looking for.

We're bringing quality craft cannabis to market - an innovative business model that zeroes in on an enormous opportunity to grab market share from the multi-billion-dollar unregulated market.


Let's break down your business, what services do you offer for micro cultivators and how will this work?

Our proposed partner-focused path to market includes embedded quality assurance protocols, progress payments for product, and potential distribution through future sales channels.

Our suite of seed-to-shelf solutions will include a demonstration micro-grow area, high-speed packaging lines for 3.5-gram jars and pre-rolls, small-batch anti-microbial services, and a nursery to supply clones.


What are some keys to success for providing these services to micro cultivators?

We have the infrastructure and team already in place, and with the proceeds from this offering, we will be able to build out a full seed-to-shelf solutions program.

Our team of legacy growers and quality assurance experts is second to none. Micro-cultivators will have the opportunity to work with this team throughout the path to market.

We have also developed a proprietary True Tier™ quality assurance system which we believe will help micro-cultivators reach the new gold standard of production required to exceed Health Canada's protocols.


The Company recently received preliminary subdivision approval from the Village of Lumby for a first-of-its-kind cannabis business park in the Okanagan Valley, can you tell us more?

True Leaf is unlocking the tremendous value of its 40-acre site zoned for cannabis production.

Industrial land in the Okanagan is at a premium with Kelowna seeing prices at over a million dollars per acre and $800,000 per acre in Vernon. Our proposed price of approx $400,000 per acre at our site in Lumby will support an asset value north of $12 million for the new lots alone.

Through a phased approach, we plan to subdivide the property into 14 lots to offer land packages to regional micro-cultivators and other innovators in the space.

This will create a hub for the craft cannabis community adjacent to our existing operations at our 19,500 square foot grow facility.


What do you feel is it that separates True Leaf Brands from your competitors, particularly those who have tried to support micro-cultivators?

To start with, we recognize that the industry belongs to them. Many risked their freedom to put food on the table and make the cannabis industry what it is today and I think it's important to remember that. We've worked hard to build a business model that is fair and equitable to both parties, which we feel is key to a successful long term relationship with our clients.

We're building authentic relationships with this community. For example, the co-founder of BC Craft Farmers Co-op, Andrew Gordon, has joined our team as an ambassador to help us reach out to micro-cultivators throughout the province.

We have room to grow - literally! Not only do we have 40 acres and a beautiful building, but we also have the support of the community. There is good energy here...one can feel it from the residents and community leaders and it does make a difference. We are proud to call Lumby our home.


Looking six months to a year down the road, what is the team's plan for marketing this product?

We are excited to work with the marketing and distribution team at Velvet Management.

Velvet's 40+ team calls on every regulated cannabis retailer in Canada (currently over 1,800) and have key relationships with provincial cannabis distribution boards and multi-store chain buyers nationwide.

Velvet is a key strategic partner for True Leaf. Their team will help us implement our strategy to supply and distribute drops of limited-supply craft product to buyers nationwide. We will be spending the next few months working with his team as we prepare to launch our BC CRAFT program.


What are some key milestones that investors should look out for over the next few months?

Our cannabis business park has received preliminary subdivision approval and we have engaged a commercial real estate firm to begin marketing phase one later this month.

In addition to this, the team is incredibly busy as we work on our cultivation, the submission of our two-batch amendment and the build-out of a new upper floor 100 light demonstration micro-grow.

Assuming we are successful with our financing, we will be working on the installation of our packaging and anti-microbial equipment through the summer which we hope will align with the receipt of our retail sales license later this fall.


Thank you for joining us today to talk more about True Leaf Brands, anything further to add?

Consumers are demanding a new gold standard of quality and True Leaf is well-positioned to help bring premium craft product to market.

It's an exciting and opportune time to be in the business. We encourage investors to learn more about our unique private placement and crowdfunding offering at invest.trueleafbrands.com.



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