The North American cannabis market did not meet analysts’ financial expectations for the last period, but some smaller caps like True Leaf Brands (OTCQX: TRLFF) and Veritas Farms Inc. (OTC:VFRM) managed to beat estimates, thanks to a consistent focus on offering high quality products and a well-honed expansion strategy.
True Leaf Brands Inc. (OTCQX: TRLFF) announced on December 2 its operating and financial results for the second quarter of fiscal year 2020, which ended September 30, 2019. True Leaf Pet, a subsidiary of the company, reported global sales of $530.973 (CA$706,752), an increase of 70% over the first quarter of fiscal 2020, and 24% growth year on year.
The True Leaf Cannabis subsidiary received three licenses from Health Canada to grow, process and sell cannabis for medical purposes under the Cannabis Act for its 18,000 square foot facility, the True Leaf Campus, located in Lumby, British Columbia. The license allows the immediate start of cannabis production.
“We are pleased to announce that our subsidiary True Leaf Cannabis was approved as a licensed cannabis producer on November 22, 2019 and received three licenses from Health Canada for our facility, the True Leaf Campus located in Lumby, British Columbia. The facility is capable of producing alternative cannabis products such as food, topicals and capsules, opening new opportunities in the cannabis 2.0 market in Canada and the fast-growing European cannabis market” Darcy Bomford, founder and Chief Executive Officer of True Leaf, said.
He added: “The company is actively seeking a joint venture partner to acquire part of the True Leaf Campus. This will enable us to secure a CBD supply for our pet products and generate a return on our investments. To meet the challenges of the cannabis industry, the company has taken several strategic business decisions aimed at improving cash flow and redistributing capital to ensure the company’s long-term growth. Cost saving measures have been implemented at both subsidiaries, which are expected to lead to immediate savings and improvements in the future.”
The US CBD market growth is boosted by smaller cannabis companies
The CBD market has skyrocketed in the US, with small companies playing a major role in this boom. One such dynamic company is Veritas Farms Inc, which managed to maintain continuous growth since its foundation in 2015, thanks to consistent focus on the quality of its full-spectrum CBD products.
Veritas Farms Inc. (OTC:VFRM) manufactures nine product categories at its own industrial hemp farm and facility located in Pueblo, Colorado. The company sells its products under the Veritas Farms brand and manufactures private label products for a remarkable network of more than 4,800 retailers and distributors across the US.
The continued importance given to the quality of the products by Veritas’ team of experts has enabled the company to secure groundbreaking partnerships and a path for future expansion. Among the leading retail networks that showcase Veritas’ CBD products on their shelves are the Kroger Family chain of supermarkets, Bi-Lo and Winn-Dixie.
Veritas Farms might be the single stock investors need to bet their money on, because many other companies lack the fundamentals to succeed in the highly competitive CBD sector. Thanks to an aggressive expansion strategy and a transparent approach, the company is set to dominate the CBD sector in just a few years.
Sales of CBD products in North America alone are estimated to be worth $24 billion by 2023. These bright prospects have led companies to flock to the CBD sector. As in any new industry, transparency and honesty are at the core to achieving long-term success. Veritas Farms is capitalizing on the strong demand for CBD products across the US, laying the foundation for impressive growth in the years to come.
