In the meantime, as True Leaf Medicine (CNSX:MJ)’s medical marijuana license process was going slow, the company turned to the pet products industry and founded True Leaf Pet in 2015. The company makes a line of hemp-based supplements for pets, called True Hemp, which are available in Canada, the US and Europe. In the third quarter, True Leaf registered sales of CAD $468,056, up by over 400% on the year.
The increase in True Leaf Medicine (CNSX:MJ)’s sales of hemp-based pet supplements is in line with the latest trends in the industry. Owners are becoming more aware of the wellness of their pets and are more eager to spend more on natural supplements. In 2016, pet supplements industry registered a compound annual growth rate of around 4% and had sales of approximately $580 million.
To sum up, True Leaf Medicine (CNSX:MJ) seems to be late to the medical marijuana business, with larger companies like Canopy Growth Corp (TSX:WEED) and Aurora Cannabis Inc (TSX:ACB) not just having larger production facilities, but also expanding to the recreational cannabis market (which should be a natural next step for True Leaf as well). However, as Canada moves to legalizing recreational weed, some politicians are expressing concerns that the marijuana industry on the whole might face a supply shortage in the short-run, with some provinces already seeing shortages in the medicinal marijuana market. Therefore, True Leaf might be right on time on the market to enjoy strong sales if its production facility is completed and gets all the necessary approvals to start production. Over the long-run, there are concerns that the market will enter into an oversupply state, as new companies rush into the recreational cannabis market, so True Leaf has to strengthen its position on the market before the time comes. However, what also makes True Leaf an interesting investment opportunity is that it has a diversified business model, so its pet supplement segment can mitigate some risks that might arise in the medicinal and/or recreational marijuana market.
Disclosure: The opinions expressed in this article are Insider Monkey’s writer, Alex Oleinic’s. Insider Monkey is compensated by CrowdfundX on behalf of True Leaf Medicine for publicizing the offering of True Leaf Medicine’s securities. Insider Monkey doesn’t recommend purchase/sale of any securities, cryptocurrencies, or ICOs. Please get in touch with a financial professional before making any financial decisions. You understand that Insider Monkey doesn’t accept any responsibility and you will be using the information presented here at your own risk. You acknowledge that this disclaimer is a simplified version of our Terms of Use, and by accessing or using our site, you agree to be bound by all of its terms and conditions. If at any time you find these terms and conditions unacceptable, you must immediately leave the Site and cease all use of the Site.
