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Sproutly Canada Inc C.SPR

Alternate Symbol(s):  SRUTF

Sproutly Canada, Inc. is a Canada-based company that is a supplier of all-natural water-soluble and oil ingredients for cannabis products for the beverage and consumables market. The Company’s Health Canada Licensed Facility located in the greater Toronto area operates the application (APP) Technology and produces naturally water-soluble cannabis solution (Infuz2O) and cannabis plant oils infused into bio-natural oil (BNO), each delivering the whole plant spectrum of natural bioactive molecules. Infuz2O is a natural water-soluble cannabis solution that can be stably formulated into traditional beverages without the use of artificial chemicals and/or physical means to keep the cannabinoids blended in the water base. It has the licensee of Infusion Biosciences’ APP Technology in Canada, Europe, United Kingdom, Jamaica, Israel, and Australia. BNO is a cannabinoid oils that retain strain-specific attributes, such as euphoria in gorilla glue strains, and relaxation in blueberry strains.


CSE:SPR - Post by User

Bullboard Posts
Comment by SUMKNDV1DERFLon Apr 18, 2020 10:29pm
155 Views
Post# 30926358

RE:RE:RE:"Use of Proceeds" = N/A?

RE:RE:RE:"Use of Proceeds" = N/A?
1MTFSA wrote: Can anyone shed more light on the info below?
HawkII wrote: Scotia: Mgmt gave themselves 5.4m options with $0.10 strike price that expire in 4 yrs (2024). Probably for the great job they've been doing. Also explains why they've been silent ... no news lets the stock drift lower and they can then award themselves cheap options at +3yr lows. Now that they are placed well, the newsflow could start. 

These were awarded on March 17th and they have 30 days to file the award, which is why we're seeing it posted o the CSE website now. Unlikely any mgmt exercise now, therefore little goes into SPR's treasury with so long til expiry. No surprise that these were awarded on Mar 17th, 1 week before the latest business update on Mar 24th. Guess they thought the update would give the stock a bump and those mgmt options would be well in the money. Unfortunately the street is onto their tactics. A broker friend suggested I go thru historical CSE filings ... found a couple beauties there including below showing Dolo owned the shell that SPR bought. Other filings show that Canaccord and Haywood people bought into private placements also ... yet they still have the confidence to start coverage yrs later.

https://webfiles.thecse.com/CSE_Final_Form_9_-_Notice_v4_amended.pdf

ScotiaOne wrote: Can anyone provide more insight into what might be going on here from a corporate finance perspective to help the rest of us understand? Granting 5,400,000 Stock options at $0.10 and stating the "Use of Proceeds" as N/A seems a little unusual to me as surely there is a use!
 
Again, what started out as a great story (Sproutly) is crumbling under the weight of obscurity. The options issuance could be 100% legit and actually a good news story? However, with a communications strategy that seems to following the CCP playbook, how the heck would existing or prospective investors know!
 
Dolo is starting to resemble a "let them eat cake" kind of guy and I never felt that way before but...
 
Yes, I'm complaining but geesh, toss us some crumbs to nibble on while we wait for the story to continue. This is one long intermission!


I posted the CSE filings that Fedor was ranting about for those that were not up to date.  I have a theory on what is happening.  
However, it is just that, a theory.  Just as Hawk’s comment and his broker friend’s advice along with Fedor’s gym buddy. Take it all with a grain of salt. Do some research for yourself.  Ink Research is a decent site with much insider trading and options info.

There are a few events which transpired over the last few weeks/month which lead me to believe there is something juicy going on. Good or bad, I cannot for certain say.  However, I suspect it is the make or break event we have been waiting for.  Although I cannot say 100 percent,  if I am reading the entirety of it accurately, it is more share holder favourable then not. 

For starters, the last PR.  Despite the state of open interpretation the PR left share holders, I believe the message was a positive one.  However vague, it spoke of plans for the future, an execution strategy and advised the JV remained a part of the story with collaborative beverages to be stand alone successful.  These are all positives and demonstrate a business moving forward rather than backward into the negative. More details would have been appropriate on the part of Keith and to  full fill his obligations to share holders respectfully. Especially in regard to exclusivities on THC bevs.  Although I did not interpret the change in JV exclusives many share holders did. Either way, $PR advised that they are moving forward with APP commercialization. This is huge and a large part of what we needed to hear aside from the  minor line regarding the JV. 

The next event occurred about a week ago.  One million plus common shares were moved around which did not effect volume as it should have.  The movement appeared to be a back and forth transfer largely between banks.  TD and Scotia appeared to be very interested in inconspicuously moving shares back and forth as Anonymous seller/buyer. The interest from banks in a stock is always good.

Now this 5.4 mil in options grant form 11 and 7 filing.  This is the big one.  There are a lot of N/A’s. One major concern for me is that they kept the grant under 10% of the holders holdings which allows for the N/A entries. 

I see this as a concern only because knowledge is the most valuable comedy there is. Share holders want the details and begin to speculate when none are provided. 

With this said, grant options are not necessarily a cause for concern or panic. Especially at the current share price.  This could be viewed as a positive considering the current situation. As Hawk stated, with a low share price, it is in managements favour to grant these options with 4 yrs at 0.10.  Also, it would only be in favour of management if they are and or will be worth something in 4 years. It is obvious that they anticipate worth from the grant.  However, more detail of the grant is required to fully understand the dynamics and potential impact it will have on $PR in the current and long term.

So for those reasons, I strongly believe something big is cooking and management is positioning themselves, along with the company, to take full advantage.  This is not insider trading. However, I interpret this as a strong indicator to read carefully between the lines and to start paddling if you want to catch the wave. 

Again, I could be wrong and Keith could be playing us all in attempts put forth his best poker face. However, I do not believe any of these well established members of management with many years of credibility and highly regarded reputations are in this for a quick buck when also considering the massive potential of this tech. I see good things coming, if they can get passed these hold ups, what ever they may be, packaging/licensing. 
Bullboard Posts