RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Whats up with bevcanna Best of luck to you Blizzy but I'd take another peek at Sproutly if those are the reasons you moved over. Sproutly closed it's grow-op and laid off 75% of their staff. As of their current MD&A they still have not exited whatever their deal is with Moosehead.
It seems like they want to move into licensing their APP tech but they have no supply of oil/distillate themselves, nor does Bevcanna. The have a supply of flower they need to unload, but so does everyone else.
They're also flirting with bankruptcy.
https://www.sedar.com/GetFile.do?lang=EN&docClass=7&issuerNo=00037547&issuerType=03&projectNo=03128754&docId=4823089
--------------------------------
On May 14, 2020, the Company announced a business transformation plan, shifting the Company’s resources away from cannabis cultivation to focus on the commercialization of its proprietary APP Technology (the “Business Transformation Plan”). As part of the implementation of the Business Transformation Plan, Infusion Biosciences Inc. (“Infusion Biosciences”) committed to further investment into the Company and to provide additional human capital resources*** to execute on the new plan.
Key elements of the plan include the following:
- A substantial change to the Company’s business strategy to focus on its proprietary APP Technology for Cannabis 2.0 opportunities and away from the capital-intensive cannabis cultivation business
-Appointment of Dr. Arup Sen, CEO of Infusion Biosciences, Chief Science Officer of Sproutly Canada Inc. and inventor of the APP Technology, is appointed as CEO of Sproutly
- The Company intends to explore strategic alternatives with respect to its cultivation facility that is a Licensed Producer under the Cannabis Act of Health Canada
- A commitment to the Company for additional capital investment from Infusion Biosciences, owner of the APP technology and the largest shareholder of Sproutly
- Continuation of discussions with Moosehead Breweries to restructure the previously announced joint venture agreement to focus on the sale of Infuz2O, eliminate any capital investment requirement by Sproutly, and allowing broad commercialization of the APP technology via formulation and sale of unique custom ingredients for cannabis products
-The Company will implement cost-cutting initiatives to better align its expenses with current market conditions, including a reduction of staff by approximately 75%
***Human Capital Resources - Friends with free time.
Finances
On September 10, 2020 the Company announced it intended to settle an aggregate of $182,340 of payroll indebtedness owed to certain current and former employees for past services rendered through the issuance of 2,604,867 common shares at a deemed issuance price of $0.07 per share.
On September 30, 2020, the Company announced that it had agreed to settle an aggregate of approximately $69,300 of indebtedness owed to one arms-length creditor for past services rendered through the issuance of 1,386,000 common shares at a deemed issuance price of $0.05 per share. All common shares issued in satisfaction of the indebtedness are subject to a four month hold period from the date of issuance.
The Company acknowledges that there is material uncertainty over the Company's ability to meet its funding requirements as they fall due. The Company’s ability to continue in the normal course of operations is dependent on its ability to raise additional capital through debt and equity financings or refinancing debt as it comes due. While the Company has been successful in raising capital in the past, there is no assurance that it will be successful in closing further financing in the future. Also, there can be no assurance that additional financing can be obtained in a timely manner, or at all, especially in light of the potential impact of the COVID-19 global pandemic on capital markets. Accessing the capital markets can be particularly challenging for companies operating in the cannabis industry. The Company has established and put into motion various initiatives to reduce costs and expand revenues as part of the Company's strategic plan to attain profitability and positive cash flow in 2021.
(c) Liquidity risk Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company has a planning and budgeting process in place to help determine the funds required to support the Company’s normal operating requirements on an ongoing basis. The Company ensures that there are sufficient funds to meet its short-term business requirements, taking into account its holdings of cash and financing opportunities. Since incorporation, the Company’s primary source of funding has been through debt and equity. The Company’s access to financing is always uncertain. As at August 31, 2020, the Company had current assets of $989,908 to settle current liabilities of $11,356,412.
The Company has the following undiscounted loan obligations as at August 31, 2020, which are expected to be payable in the following respective periods:
Less than 1 year --- $10,066,448