Sproutly Canada Inc C.SPR

Had a call with Dr Sen.....

[Blizzy420]

1. The first and foremost point is that Sproutly is not going anywhere and that he remains committed to using the technology license for APP to move forward with Sproutly in Canada and other licensed regions. The sale of THR unburdens the Sproutly from its subsidiary THR, significantly reducing the monthly cash burn. While THR will continue under the bankruptcy proceedings the building will be sold off with intentions of servicing the THR debt obligations. To me it didnt sound like there would be anything left over. He did make a savvy move of committing the biomass grown at THR to the JV with KCI so that the cannabis material could be utilized in the JV and not lost to the bankruptcy proceedings. The Cannahive machine is gone, it was a THR expense and THR took the hit and the machine is gone.
2.  

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   3:35 PM

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   KCI continues to be one part of the Sproulty story as they work toward their production and sales license. Together the two companies are putting in their application for a sales license with David Hyde advising on the application. David Hyde has advised that the process to get a sales license has been streamlined and if done properly can be obtained by producing 2 successful batches that are prepared for sale and submitting those through the application process. The optimal timeframe for this process can be a 60 day period much like the NNCP's with NNCP's being worked on concurrently with the sales license for submittal in the near future. A goal of launching 2oz shots in sativa/indica in the fall is the best case scenario. Those will likely be followed by a functional set of 2.0 shots that will follow shortly after.
3.  

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   3:37 PM

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   the financial picture is obviously bleek, MMCAP has given another month to sort things out, he did not give indication one way another on their intentions for the debt, but did mention they do not like to hold more than 9% of any company these days.
4.  

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   3:40 PM

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   A financial raise at these levels would be detrimental to the cap structure so he is not in favour of doing so. He does recognize that launching new product lines will cost money even with KCI footing a large portion of the bill as part of the JV. He is exploring non dilutive options such as structured loans or prepaid agreements with a goal of generating some cash without diluting share holders further
5.  

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   3:45 PM

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   He did say if he needed to raise $250,000 to move up the timeline by 3 months he might be into that small type raise but until their is a small rebound in the stock price a raise of any size is unlikely