Sproutly Announces Financial Results for the Second Quarter Of 2021
Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FRA: 38G) (“Sproutly" or the “Company”) today announced the Company’s financial results for the second quarter ended August 31, 2020.
"While we saw an increase in our flower revenue in this quarter as compared to Q1, the big news came subsequent to the end of the quarter when we received our Cannabis 2.0 sales license,” said Dr. Arup Sen, Chief Executive Officer of Sproutly. “This is the milestone we needed to achieve in order to sell differentiated cannabis and hemp products that use the natural water soluble and oil ingredients produced by our APP technology in Canada.”
Highlights for the Second Quarter Ended August 31, 2020
- THR entered into a cannabis supply agreement with the province of British Columbia through the British Columbia Liquor Distribution Branch as well as completing initial sales into the province. This is the 5th province in Canada to carry the Company’s CALIBER branded indoor-grown dried flower products.
- The Company reorganized their Board of Directors. Michael Bellas, Gregg Orr and Justin Kates departed, with Craig Loverock and Paul Marcellino joining the Board. In addition, Con Constandis was named Chair of the Audit Committee with Dr. Arup Sen taking over as Board Chairman.
- The Company amended the interest clause on its previously issued convertible debentures such that the Company can now settle the interest owing through the issuance of common shares or cash, subject to the prior written approval of Debenture holders holding more than 20% of the outstanding Debentures.
- The Company secured a private loan of $855,000 from Infusion Biosciences Inc., a related party of the Company. The Loan carries an interest rate of 15% per annum accruing and compounding monthly, payable on maturity on or before October 24, 2020.
- The Company completed a non-brokered private placement of 1,500,000 units of the Company at a price of $0.07 per Equity Unit to raise gross proceeds of $105,000. Each Equity Unit consists of one Common Share and one Warrant, with each Warrant entitling the holder to acquire one Warrant Share at an exercise price equal to $0.08 for a period of two years from date of issuance.
- The Company completed a settlement of outstanding current debt of the Company in the amount of $180,000 with an arm’s length creditor. In settlement of the Debt, the Company has issued 1,800,000 Common Shares (the “Settlement Shares”) at a price of $0.10 per Settlement Share.