VANCOUVER, British Columbia--(BUSINESS WIRE)--
NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
"We hit a key milestone in the second quarter as we completed our first commercial sale of cannabis flower, and followed that up with another milestone shortly after the end of the quarter” said Keith Dolo, Chief Executive Officer of Sproutly. “We were thrilled to receive our Flower Sales License from Health Canada effective October 16, 2019. This allows us to bring to market our dried flower products into the hands of recreational consumers throughout the country and commercialize our CALIBER brand of premium cannabis products. We anticipate more growth as we begin to generate revenue from the sales of our flower as we move into Q3. We continue to execute on our plans to achieving our goal of becoming a leader in the cannabis infused product category.”
Highlights for the Second Quarter Ended August 31, 2019
- The Company recorded its first commercial sale of cannabis flower in Canada.
- Toronto Herbal Remedies (“THR”) (the Company’s wholly-owned licensed cannabis producer) submitted an amendment for a sales license for cannabis flower and oil. THR has successfully completed its first packaging run for both cannabis flower and oil products and has provided all supporting documents to Health Canada.
- The Company completed a voluntary debt for shares settlement agreement with an arm’s length creditor, settling an outstanding current debt of $3,537,455 by issuing 4,716,606 common shares at a price of $0.75 per share and improving its working capital position.
- The Company successfully completed the first run of the proprietary Aqueous Phytorecovery Process (“APP”) extraction technology licensed from Infusion Biosciences Inc. at THR.
- THR received its sales license for cannabis flower from Health Canada. The Flower Sales License will allow THR to sell dried cannabis flower products provincially and territorially in Canada through authorised distributors and retailers. The sales will commence through the launch of Sproutly’s premium cannabis brand CALIBER.
- Infusion Biosciences Inc. (“Infusion”) and BNO Holdings Inc. (“BNO Holdings”) developed and verified analytical methods that detect, identify, and measure cannabinoid molecules in water-soluble (“Infuz2O”) and oil preparations (“Bio-Natural Oil”) derived from cannabis and hemp using APP Technology (collectively, the “Developed Analytics”). APP Technology is a patent pending process that uses proprietary reagents to recover naturally occurring water-soluble cannabinoids as well as the cannabis oils.
- The Company expanded its operations with a new manufacturing facility in close proximity to the THR production facility in Scarborough, Ontario. The additional property allows the Company to continue to centralize operations in the Greater Toronto Area, as well as providing manufacturing capabilities for its proprietary reagents, a key input for the APP Technology cannabinoid recovery process.
Conference Call and Webcast Information
Sproutly will host a conference call on Thursday, October 31, 2019 at 10:00 AM Pacific Time, 1:00 PM Eastern Time to answer questions about the Company’s financial highlights. The dial-in numbers for the conference call are 1-800-319-4610 (Canada/USA toll free) or +1-604-638-5340 (International). Please dial in 5 – 10 min prior to the scheduled start time.
Consolidated Financial Statements and Management's Discussion and Analysis
The Company’s unaudited consolidated interim financial statements and accompanying notes as at and for the quarter ended August 31, 2019, and the Company's Management's Discussion and Analysis for the three months ended August 31, 2019 are available under the Company's profile on SEDAR at www.sedar.com.
About Sproutly Canada, Inc.
Sproutly’s core mission is to become the leading supplier to the cannabis beverage and edibles market. Our Toronto based, ACMPR licensed facility was built to cultivate pharmaceutical grade cannabis to supply a technological breakthrough in producing and formulating the first natural, truly water-soluble cannabis solution. Our water-soluble ingredients and our bio-natural oils will deliver revolutionary brands to international markets that are clamouring for well-defined commercial products. Sproutly’s business focus is to execute on partnerships with local and globally established consumer brands to leverage their existing customer bases, further expand brand loyalty, assist with marketing, and support distribution networks to deliver this scientific breakthrough with speed and efficiency worldwide.
For more information on Sproutly, please visit www.sproutly.ca.
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or future performance and reflect the expectations or believes regarding future events of management of Sproutly Canada. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions with respect to, among other things, the date of trading of the Sproutly Shares on the CSE and final regulatory approvals. These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These assumptions, risks and uncertainties include, among other things, the state of the economy in general and capital markets in particular, and other factors, many of which are beyond the control of Sproutly Canada. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial out-look that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.