Investor & Micro-Cultivator FAQ

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What does True Leaf Brands do?

True Leaf Brands is a Licensed Producer of cannabis preparing to launch a program to provide seed-to-shelf solutions for micro-cultivators. The program will operate from the Company’s 40-acre property in Lumby, British Columbia, Canada, and will provide a full suite of in-house production, processing, and packaging services to the craft cannabis community.

What is True Leaf Brands Cannabis Business Park?

Our 40-acre site located in Lumby – a town located in the sunny Okanagan region of B.C. The site is zoned for cannabis production and anchored by our 19,500 square foot grow facility. At True Leaf Brands Cannabis Business Park, we’re creating a first-of-its-kind campus-style craft cannabis hub designed to bring craft cannabis to the retail market. We’re giving micro-cultivators and other industry innovators the opportunity to find a home and access the seed-to-shelf services they need to establish their business and enter the legal retail market.

How big is the market opportunity in craft cannabis?

The estimated size of the regulated (legal retail) and unregulated (illicit or grey) market in Canada is $8-10 billion.  Recent stats show that more than 60% of this market still belongs to the unregulated segment! True Leaf Brands is zeroing in on this enormous opportunity – capturing consumers from the multi-billion-dollar grey market.

What makes True Leaf Brands a good investment opportunity?

Today’s consumers have a strong preference for craft-grown cannabis (BNN Bloomberg). They are disappointed in the result of legalization in 2018 – retail markets flooded with low-quality, over-priced, and often irradiated cannabis. True Leaf Brands is supporting the craft cannabis community by partnering with micro-cultivators to provide the small-batch, premium product consumers are looking for.

We are zeroing in on an enormous opportunity – capturing consumers from the multi-billion-dollar grey market! 

Today, the company has incorporated a lean management style, built a solid business plan based on a conservative approach, and now has an asset base value close to its market cap. We feel the company represents a good investment opportunity and we hope potential investors see the value and feel the same way.

Who can invest in True Leaf Brands?

True Leaf Brands has launched both a traditional private placement and an equity crowdfunding offering so institutional investors, the craft cannabis community, and the general public all have the opportunity to invest in the Company’s innovative business model.

This includes: Canadians (except Quebec residents) of legal age, qualified international investors, and U.S. accredited investors as per the first page of the Subscription Instructions.

We have prepared an Offering  Memorandum (OM) which enables Canadians as outlined in the OM to participate in this Private Placement.  

In the U.S., we are relying on Regulation D, Rule 506(c) to offer our securities to U.S. residents and citizens. Rule 506(c) allows for general solicitation and advertising; however, all sales must be strictly made to verified accredited investors. EarlyIQ will simplify this verification process for U.S. investors.

How do I invest in True Leaf Brands?

You can easily invest in our offering online using our secure investment portal at invest.trueleafbrands.com.

If you’d like to learn more before investing, you can email ir@trueleafbrands.com.

Please make sure to read the OM detailing the terms of this offering before making any investment.

CLICK HERE for Canadian and International investors or CLICK HERE for accredited U.S. investors.

How do I pay for my investment?

On the Broker-Dealer side and outside of DealMaker platform, via bank draft, certified cheque, wire transfer, Automated Clearing House payment (ACH), or Electronic Funds Transfer (EFT) (net of any bank charges) please make payable to “True Leaf Brands Inc.”

EFT and wire transfer instructions will be provided upon request or can be downloaded from invest.trueleafbrands.com

If you have used True Leaf Brands’ crowdfunding partnered platform DealMaker, CAD and USD wire transfers can be made to Bank of Montreal (BMO) with instructions given at the end of the subscription process.

See Section 5.2 Subscription Procedure of the Offering Memorandum for further details.

How much money does True Leaf Brands need to raise to fully execute its business plan?

With the proceeds from this Offering, True Leaf Brands plans to execute its strategic plan to become the industry’s leading provider of seed-to-shelf solutions for micro-cultivators. 

With key infrastructure and resources already in place, the Company is poised for rapid growth.  In March, we closed an oversubscribed $1.5 million private placement and are seeking to raise $5 million in this round. We have also set a maximum raise target of $10 million in order to reserve as much room as possible for crowdfunding participants to become shareholders and part of the True Leaf Brands family.

How will True Leaf Brands use the proceeds from this round?

Based on a successful raise of $5 million, the estimated use of proceeds will be: 

 

Equipment and Building Renovations $2.75M 55%
Product Inventory $750K 15%
General Admin Costs and Contingency $1.0M 20%
Marketing and Closing Costs  $500K 10% 
Total $5M

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When will the company be profitable?

Based on a successful raise of  $5 million and our four-year forecast, we are projecting to be cash-flow positive by fall 2022. The company is taking a conservative approach with a focus on lean management structure and leveraging capital in order to reach positive EBITA as soon as possible.

Who is True Leaf Brands’ ideal micro-cultivator client?

We assume the top 20% of licensed micro-cultivators will be true masters of their craft with a deep connection to their plants and the legacy behind them. This is our ideal client – a grower who is  incredibly focused on quality.  This client would prefer to focus on cultivating the best cannabis in the world without the added distraction of quality assurance testing, processing and packaging, and navigating the regulated retail market. This is where True Leaf Brands steps in to provide the seed-to-shelf solutions they need. Our clients will feel confident that their product is reaching the retail market in as perfect condition as possible and be able to share in the success they have created.

Who are the company’s key team members?

To learn more about our team, please visit: https://trueleafbrands.com/about/#company

Who sits on True Leaf Brands’ Board of Directors?

True Leaf Brands’ Board of Directors is chaired by former B.C. Premier and former Mayor of Vancouver, Mike Harcourt.

To learn more about our Board, please visit: https://trueleafbrands.com/investors/#management

Why is the cannabis market poised for positive upside for investors?

The cannabis industry is still in its infancy – but it has already weathered an aggressive correction period and appears to be poised for a new stage of sustained growth as support for legalization grows around the globe.

What are the key investment parameters of your private placement?

Up to 25,000,000 units (each, a “Unit”) at $0.40 per unit (max offering amount of $10,000,000). Each Unit consists of 1 common share and one-half of one warrant, with each whole warrant (each, a “Warrant”) exercisable to purchase 1 additional Common Share (each, a “Warrant Share”) at an exercise price of $0.60 for a period of 2 years from the issuance date of such Warrant.

See section 5.1 Terms of Securities of the OM for further details.

How long is this investment available?

The offering will be available for 45 days from the date of public announcement as per the rules of the Canadian Stock Exchange (CSE).  The CSE will sometimes grant extensions depending on the circumstances.

Why are private placements attractive to investors?

They are usually done at a discount on the current market price. Investors also receive a warrant giving them the option to buy more shares at a fixed price.

Allows investors to acquire a sizable position at a fixed price rather than pushing the price higher through open market purchases.

Micro-cultivator FAQ

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I’m a micro-cultivator. How can I partner with True Leaf Brands?

Give us a call at 250-275-6063 or email us at info@trueleafbrands.com. We’d love to speak with you.

Why should micro-cultivators work with True Leaf Brands?

We value the craftsmanship that micro-cultivators bring to the industry and we see the struggles that micro-cultivators experience in getting their beautiful product to market. We recognize that the cultivation process is a job by itself and having to deal with a complex route-to-market on top of this can be frustrating and time-consuming. True Leaf Brands’ team can help with regulatory compliance, quality assurance, packaging and sales, so growers can focus on what they do best – producing some of the best cannabis in the world.

What does a partnership with True Leaf Brands look like?

A partnership with us means that you will get to leverage our experienced team and a full suite of services engineered to make your pathway to the regulated market as smooth as possible. Here is a snapshot of the bundled seed-to-shelf solutions we plan to offer: 

  • Quality assurance and regulatory compliance audit
  • Nursery supply of clones or teens 
  • Contracted lab testing services
  • High speed 3.5 gram glass jar and pre-roll packaging lines
  • On-site anti-microbial service 
  • Progress payments for production 
  • Potential sales and distribution channel
  • Bonus payments based on selling price

What are the advantages of doing business with True Leaf Brands?

  • You can focus on growing!
  • You will have a team of cultivation, quality assurance, and regulatory experts at your disposal 
  • You will have access to a state of the art facility with all the equipment needed to bring your product to market
  • You will get the help you need to meet and exceed  Health Canada compliance requirements 
  • You will have the opportunity to see your brand on store shelves

Can unlicensed micro-cultivators work with True Leaf Brands?

At this time, we can only enter into agreements with licensed micro-cultivators.

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Can True Leaf Brands help me get my micro-cultivators license?

At True Leaf Brands, we have developed relationships with industry experts. And, at this time, we recommend booking a discovery call with GROWBOX Consulting’s founder and our facility general manager, Tom Smale, to get you the guidance that you need: https://growboxconsulting.as.me/discovery

How can I benefit from True Leaf Brands’ demonstration micro-grow?

Our demonstration micro-grow will help cultivation teams observe how we design, build and run our craft cannabis cultivation programs. Our transparent approach will show you how to implement and operate a state-of-the-art grow that is cost-effective, simple to operate, and field-tested to produce consistent, premium craft cannabis. We are excited to build a community with people who want to learn and grow together. The sharing of collective knowledge and experience is key to the success of the B.C. craft cannabis community.

How do I apply to be a part of True Leaf Brands’ Cannabis Business Park?

Please call our Business Development Manager Nick Foufoulas at 250-275-6063 x201 or send him an email at nick@trueleafbrands.com

He will walk you through the process of joining the Okanagan’s first cannabis business park.

Why is Lumby the ideal location to set up my business?

Lumby has a rich history when it comes to cannabis cultivation.  In fact, “Lumby Logger” was a cannabis cultivar found on cafe menus in Amsterdam many years ago!  The Lumby community is supportive of True Leaf Brands and bringing your business to Lumby means you’re helping to support their local economy. We are happy to call Lumby home and welcome you to join us.