Sproutly Announces Filing of Application for Management Cease Trade Order

Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FSE: 38G) (“Sproutly" or the “Company”) today that it will likely miss its filing deadline of September 14, 2020 to file its unaudited interim financial statements and accompanying management's discussion and analysis and related CEO and CFO certificates for the financial period ended May 31, 2020 (collectively, the “Interim Filings”), as required under applicable Canadian securities laws.

In connection with the Company's inability to file the Interim Filings on time, the Company has applied for a Management Cease Trade Order (“MCTO”) under National Policy 12-203 – Management Cease Trade Orders (“NP 12-203”) and is waiting for the British Columbia Securities Commission approval.

The Company is applying for a MCTO as a result of complexities caused by COVID-19 pandemic, which initially impacted the Company’s ability to complete its audited annual financial statements and has consequently caused a delay in completion of the Interim Filings.

The Company expects to file the Interim Filings as soon as they are available, but in any event no later than October 16, 2020 and will issue a news release once the Interim Filings have been filed. Until the Company files the Interim Filings, it will comply with the alternative information guidelines set out in NP 12-203. The guidelines, among other things, require the Company to issue bi-weekly default status reports, in the form of news releases, for so long as the Interim Filings have not been filed.

During the MCTO, the general investing public will continue to be able to trade in the Company's common shares listed on the Canadian Securities Exchange. However, the Company's Chief Executive Officer and Chief Financial Officer and such other directors, officers and persons as determined by the applicable regulatory authorities will not be able to trade in the Company's shares, nor will the Company be able to, directly or indirectly, issue securities to or acquire securities from an insider or employee of the Company except in accordance with legally binding obligations to do so existing as of September 14, 2020, being the date of the Company’s anticipated continuous disclosure default.