True Leaf Medicine International Ltd.´s True Leaf Pet Inc. has completed the purchase of the assets and intellectual property of Orega-Pet, an award-winning Canadian brand of medicinal products for animals.
Previously, True Leaf and OregaPet announced the signing of a letter of intent on Nov. 3, 2016. The purchase is now complete effective Jan. 1, 2017, with True Leaf acquiring all of OregaPet´s assets.
"This is a major positive step forward for True Leaf Pet," said Darcy Bomford, True Leaf chief executive officer. "The OregaPet brand and natural-remedy focus align perfectly with our company´s quality-of-life vision for our customers and their pets. At the same time, the addition of 10 new items to our product lineup will instantly expand our in-store presence and generate revenue in all of our markets."
True Leaf Pet paid a total of $200,000 -- $100,000 in cash and $100,000 in shares -- for the brand assets, and then agreed to pay $146,409.95 for finished goods and packaging inventory over three years with no interest. The seller and its principal shareholder, TLM Development Ltd., also agreed to enter into a five-year non-competition and non-solicitation agreement covering pet-related businesses.
OregaPet´s product line has attracted industry recognition for its innovation and effectiveness. OregaPet bed and body spray received the 2016 National Nutrition award for best pet product and OregaPet oil of oregano received the 2013 Alive Consumer´s Choice Silver Award for best new product. Sales of OregaPet products in Canada are approximately $12,000 per month, and the company expects significant growth as it rebrands the line for sale in the United States and European specialty pet and natural grocery markets.
"OregaPet is unique in that it is the only brand that has leveraged the widely recognized medicinal powers of oil of oregano and incorporated them into a pet product line. Natural remedies and holistic alternatives to pharmaceuticals are top of mind with our customer demographic and we see a real winner here," said Mr. Bomford.
True Leaf has seen steady growth over the past quarter and expects solid performance as it enters the new year and closes off its fiscal year in March, 2017. Keys to the company´s strategy are additional line extensions under its successfully established True Hemp brand and new product offerings through acquisitions and entries into new market segments.
About True Leaf
True Leaf Medicine International, through its wholly owned subsidiary, True Leaf Pet, has entered the $104.9-billion global pet care industry with a line of hemp-focused pet chews and supplements marketed through natural pet health and veterinary channels in Canada, the United States and Europe. The company has also filed an application under Health Canada´s access to cannabis for medical purposes regulations to become a Canadian licensed producer through its True Leaf Medicine subsidiary. It has passed through the preliminary and enhanced screening process of Health Canada´s review, and is currently awaiting security clearance and prelicensing inspection approval.