Sproutly Delivers Its Inaugural Shipment of CALIBER in Canada and Signs 2nd Provincial Supply Agreement With Cannabis NB

Sproutly Canada, Inc. (CSE:SPR) (OTCQB:SRUTF) (FSE:38G) (“Sproutly" or the “Company”) is pleased to announce the delivery of its first shipment of CALIBER flower to Alberta Gaming, Liquor & Cannabis (“AGLC”), marking its entrance into Canada’s recreational cannabis market. Adult recreational cannabis consumers in Alberta will soon have the opportunity to enjoy CALIBER’s Berry White and Lemon Z strains which will be available for purchase on Alberta’s only legal online recreational cannabis store, AlbertaCannabis.org as well as in many of the over 350 licensed physical cannabis retailers, the most out of any Canadian province. This news immediately follows the announcement from December 3^rd, 2019, that Sproutly’s wholly-owned subsidiary Toronto Herbal Remedies (“THR”) signed a Supply Agreement with AGLC.

THR has also entered into a cannabis supply agreement in the province of New Brunswick (the “Supply Agreement” or the “Agreement”), through Cannabis NB (“CNB”) as of December 5^th, 2019. As part of the Agreement, Sproutly will initially supply Cannabis NB with its craft, indoor-grown dried flower products produced at THR, under the Company’s premium cannabis brand “CALIBER”.

“We have a dedicated and driven team at Sproutly, who are focused on delivering executional excellence on every element of our business strategy, starting with the launch of CALIBER flower,” said Keith Dolo, CEO & Director of Sproutly. “Just days after announcing our supply agreement with AGLC, we are proud to see that our product has reached retail availability in Alberta. In addition, the Supply Agreement with Cannabis NB, combined with the anticipated demand from AGLC, is expected to represent the bulk of Sproutly’s anticipated annual highest grade flower production,” explained Dolo.

CALIBER will launch in New Brunswick with 4 SKUs including both 1g and 3.5g sizes for each of CALIBER’s unique strains, Berry White and Lemon Zkittle (2018 Highlife Cup Overall and Best Sativa winner which will be called Lemon Z). The launch will be supported with regional marketing efforts in line with Health Canada regulations.

“We are thrilled to have completed our first shipment to Alberta and to have signed a supply agreement with Cannabis NB. Both provinces are strategic points of entry for CALIBER into the Canadian recreational market as they have attractive consumer bases for high-quality craft cannabis flower. In addition, New Brunswick is a key province as it is the base of operations for our Joint Venture partner, Moosehead Breweries Ltd.,” said Melise Panetta, Vice President of Marketing and Sales. “These are major milestones for our organization and play a key role in achieving our overall vision of expanding our portfolio in 2020 into extracts, beverages (via the Moosehead Sproutly Joint Venture Partnership) and edible products using the proprietary Aqueous Phytorecovery Process (“APP”) technology that extracts BioNatural Oils (BNO) and water soluble Infuz20,” continued Panetta.