NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FSE: 38G) (“ Sproutly " or the “ Company ”) announces that the Company and Infusion Biosciences Inc. (“ Infusion ”) have entered into agreements to extend the maturity dates of both the $1 million private loan issued by Infusion to the Company on January 28, 2020 (the “ January Infusion Loan ”) and the $855,000 private loan issued by Infusion to the Company on August 27, 2020 (the “ August Infusion Loan ”, collectively with the January Infusion Loan, the “ Infusion Loans ”) to April 24, 2022.
The January Infusion Loan is evidenced by a secured convertible debenture in the principal amount of $1,000,000 (the " January Debenture ") which provides Infusion with the right to convert the principal and accrued interest on the January Infusion Loan into units of the Company (each, a “ Unit ”) at a conversion price of $0.07 per Unit. Each Unit is comprised of one common share of the Company and one common share purchase warrant of the Company, with each such warrant convertible into one common share of the Company at an exercise price equal to $0.08 per share for a period of two years from the date of issue.
In connection with the August Infusion Loan, Sproutly has also issued a secured convertible debenture in the principal amount of $855,000 (the " May Debenture "), which provides Infusion with the right to convert the principal and accrued interest on the August Infusion Loan into Units on the same terms as the January Debenture. The May Debenture and the securities issuable upon conversion of the May Debenture are subject to a minimum four-month hold period and restrictions on transfer under Canadian securities law.
Both of the Infusion Loans were originally due to mature on April 24, 2021, and have each been extended to a maturity date of April 24, 2022.
For additional details regarding the Infusion Loans, please refer to the Company’s news releases dated January 28, 2020, August 27, 2020, and October 23, 2020, each of which are available on the Company’s SEDAR profile at www.sedar.com .
About Sproutly Canada, Inc.
Sproutly’s core objective is to become the leading supplier of unique ingredients and customized formulations to the cannabis beverage and edibles market. Our natural water-soluble Infuz2O and BioNatural Oils will deliver revolutionary brands to international markets that are striving to produce a diverse portfolio of differentiated consumer 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 .
View source version on businesswire.com: https://www.businesswire.com/news/home/20210510005951/en/
Dr. Arup Sen, Chief Executive Officer and Director of Sproutly Canada, Inc.
Email: investors@sproutly.ca