Mr. Paul Sullivan reports

TRUE LEAF REPORTS RECORD SECOND QUARTER 2020 FINANCIAL RESULTS

True Leaf Brands Inc. has provided its operating and financial results for the fiscal 2020 second quarter ended Sept. 30, 2019.

Q2 2020 and recent highlights

• True Leaf Pet division reported revenues from global sales totalling $706,752, a 70-per-cent increase over the first quarter of fiscal 2020 and a 24-per-cent increase year over year;
• True Leaf Cannabis division secured three licences from Health Canada to cultivate, process and sell medical cannabis for the company's 18,000-square-foot True Leaf Campus facility in Lumby, B.C. The licences allow cannabis production to begin immediately;
• Implemented cost-saving measures across both divisions and expects to realize these savings immediately and improve upon them going forward;
• Appointed former TUMI finance executive Mike Mardy, CPA, to the company's board of directors;
• Launched its CBD (cannabidiol) supplements for dogs at SuperZoo 2019, which recently rolled out to pet retail stores in several U.S. jurisdictions and on-line;
• Closed a repayment deferral transaction with an entity managed by The Lind Partners, a New York-based institutional fund manager.

"True Leaf is proud to report its strongest quarter in the Company's history," said Darcy Bomford, founder and chief executive officer of True Leaf. "This record quarter is a result of the successful rollout of our new and expanded natural pet care product lines, our investments into building our team and success in streamlining global operations. Continuing to execute on our global growth plans has allowed us to meet the high demand for our products in key markets like Europe."

                SELECTED QUARTERLY RESULTS OF OPERATIONS 
 
                                                     Three months ended         
Description                               Sept. 30, 2019  June 30, 2019 

Revenues                                         706,752        414,657 
Total operating expenditures                  (2,242,125)    (2,214,825) 
(Loss) and comprehensive (loss) for period    (1,857,602)    (1,997,651) 
Basic and diluted (loss) per share                 (0.02)         (0.02) 

Mr. Bomford continued: "We are also excited to report that on Nov. 22, 2019, our True Leaf Cannabis division became a licensed producer, securing three licences from Health Canada for our True Leaf Campus facility located in Lumby, B.C. The facility was built to meet EU GMP and HACCP standards and will also be able to produce alternative cannabis products such as edibles, topicals and capsules, creating new opportunities for the cannabis 2.0 market in Canada and the fast-growing European cannabis market."

He added, "The company is actively seeking a joint venture partner to purchase a portion of the True Leaf Campus asset allowing us to lock in a supply of CBD for our pet products and secure a return on our investment.

"To address current growing pains in the cannabis industry, the company has made a number of strategic business decisions to improve cash flows and reallocate capital to ensure the long-term growth of the company. Cost-saving measures have been made across both divisions; we expect to realize savings immediately and improve upon them going forward."

For further information, please refer to the company's management's discussion and analysis for fiscal second quarter 2020, published on the company's website.

Other corporate matters

The company has appointed Darren Battersby, CPA, as chief financial officer. He succeeds Kerry Biggs, who stepped down from the role effective Nov. 30, 2019, to pursue other opportunities. Mr. Battersby will report to True Leaf's chief executive officer Darcy Bomford.

Mr. Battersby is the former CFO of two publicly traded companies, Rainmaker Entertainment and OneMove Technologies Inc., and previously served with True Leaf as a senior-level financial consultant. He has predominately worked with companies in the start-up and growth phases of their operations and brings experience in business strategy, mergers and acquisitions, and risk management. Mr. Battersby earned a bachelor's degree in business administration majoring in accounting and finance from Simon Fraser University. He obtained his designation as a chartered accountant in 1997.

About True Leaf Brands Inc.

True Leaf Cannabis Inc., a subsidiary of True Leaf Brands Inc., owns True Leaf Campus, an 18,000-square-foot facility located on a 40-acre site zoned for the cultivation, processing and sale of cannabis in Lumby, B.C.

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