RE:RE:Sproutly provides update on business activitiesI hate that when taken along with prior statements by Keith Dolo not to expect major JV's but a series of smaller ones, they sure seem to be hedging again and not to expect a major brand name partnership.
Sproutly Provides Strategic Update
VANCOUVER, BC, February 13, 2019 – Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FSE: 38G) (“Sproutly" or the “Company”) is pleased to provide a strategic update on the development of its business to date. Sproutly continues to make substantial progress towards its goal of becoming a global cannabis beverage and edibles company.
“Sproutly has made significant progress towards building a world-class cannabis beverage and infused product company since going public in July of last year” said Keith Dolo, CEO and Director. “We have been successful in acquiring the exclusive rights to Infusion Biosciences’ APP technology, in certain jurisdictions, which is able to produce naturally water-soluble cannabinoids that deliver the full experience of cannabis paralleling the onset and offset profiles of smoking. From there, we have made steps to bring in the people and the resources to build a global cannabis branded company focused on beverage and infused products” he added.
First Harvest
Sproutly completed its first two harvests of its premium quality, small batch cannabis at its state-of-the-art Toronto Herbal Remedies (“THR”) production facility in Toronto. The results from the harvest were much better than the Company’s internal production expectations. The Company is hoping to achieve the same production results across all 12 of THR’s flowering rooms in its full-scale production; in the event that this is achieved, the total production capacity at THR will increase materially. This is an important milestone for the Company as it looks to ramp up production and shift into sales and extraction as licensing is granted.
“We are very happy with the results of our first two harvests, which produced highly efficient yields for an initial grow.” Said Bryan Semkuley, President of Sproutly. “This is a tremendous milestone for the company, as these harvests are the first step towards our production objectives. We are on track to meet our calendar 2019 production targets and expect multiple successful harvests as we continue to build on this initial success.”
As a result of the success of the first two harvests, plants are scheduled to be introduced into an additional 10 grow rooms within the next few weeks. The Company is on track to ramp up for full production in calendar 2019 and starting to plant a new room each week moving forward in its perpetual harvest plan.
Licensing
The Company continues to progress on its operational plan with respect to cultivation and extraction and had met its objectives for calendar 2018. Its ACMPR license has been migrated to the Cannabis Act which now provides the ability to sell cannabis to other licensed producers. Further, as of November 10, 2018, the Company also received license amendments approving all of the remaining 16,600 square feet at the facility for additional grow and operations and cultivation.
On November 1, 2018, the Company announced that has submitted an “addition of activity” in the month of October, to its Health Canada license, in order to produce cannabis oils. Granting of this license amendment will allow for the Company to begin extraction operations and R&D in its THR Facility.
Brand and Product Development
The Company is currently developing its brand strategy around its high quality, small batch flower and anticipates launching in conjunction with receiving its sales license.
Following the legalization of adult use recreational cannabis in Canada in 2018, cannabis edibles are expected to be legalized later in 2019. As the Company approaches the legalization of edibles and beverages, Sproutly is developing its brand and partnership strategy with respect to APP technology. Sproutly will look to maximize the use of the exclusive Canadian license for APP Technology that it obtained through the acquisition of Infusion Biosciences Canada Inc. APP Technology is a patent-pending process that gently recovers naturally water-soluble cannabinoids as well as natural oils; recovering between 85% - 90% of the total bioactive cannabinoids in the plant.
Sproutly is preparing for the coming launch of cannabis infused beverages in Canada and is contemplating a number of strategies including partnering with existing brands and launching its own portfolio of beverages. The Company has, and continues to be, engaged in discussions with beverage companies on possible partnerships, but cannot guarantee that these discussions will lead to a transaction on terms acceptable to the Company.