Shares of Sproutly Canada Inc (CNSX:SPR) are finally breaking out after 4 months of flatlining around the US$.25 level. This comes as investors are realizing that Sproutly is ahead of the competition when it comes to cannabis-infused beverages. As we take a closer look at Sproutly, there’s a lot to like with the company and why the latest bull run is just getting started.
First up, a little background info for those that are not familiar with Sproutly Canada. Sproutly’s core mission is to become the leading supplier to the cannabis beverage and edibles market.
Its Toronto based, ACMPR licensed facility was built to cultivate pharmaceutical-grade cannabis to supply a technological breakthrough in producing and formulating the first natural, truly water-soluble cannabis solution. The company’s water-soluble ingredients and our bio-natural oils will deliver revolutionary brands to international markets that are clamoring for well-defined commercial 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.
Sproutly completed its first two harvests of its premium quality, small batch cannabis at its state-of-the-art Toronto Herbal Remedies (“THR”) production facility in Toronto. The results from the harvest were much better than the Company’s internal production expectations. The Company is hoping to achieve the same production results across all 12 of THR’s flowering rooms in its full-scale production; in the event that this is achieved, the total production capacity at THR will increase materially. Bryan Semkuley, President of Sproutly, said:
“We are very happy with the results of our first two harvests, which produced highly efficient yields for an initial grow. This is a tremendous milestone for the company, as these harvests are the first step towards our production objectives. We are on track to meet our calendar 2019 production targets and expect multiple successful harvests as we continue to build on this initial success.”
The Company continues to progress on its operational plan with respect to cultivation and extraction and had met its objectives for calendar 2018. Its ACMPR license has been migrated to the Cannabis Act which now provides the ability to sell cannabis to other licensed producers. Further, as of November 10, 2018, the Company also received license amendments approving all of the remaining 16,600 square feet at the facility for additional grow and operations and cultivation.
As the Company approaches the legalization of edibles and beverages, Sproutly is developing its brand and partnership strategy with respect to APP technology. Sproutly will look to maximize the use of the exclusive Canadian license for APP Technology that it obtained through the acquisition of Infusion Biosciences Canada Inc. APP Technology is a patent-pending process that gently recovers naturally water-soluble cannabinoids as well as natural oils; recovering between 85% – 90% of the total bioactive cannabinoids in the plant.
Currently trading with a market cap of $78 million, CNSX:SPR is an exciting play among spot stocks. Sproutly is preparing for the coming launch of cannabis-infused beverages in Canada and is contemplating a number of strategies including partnering with existing brands and launching its own portfolio of beverages. The company has and continues to be engaged in discussions with beverage companies on possible partnerships. We believe it’s just a matter of time before a big deal is announced between Sproutly and a beverage giant. Because of all these factors, CNSX:SPR certainly deserves your attention.
We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:SPR, sign up below!
Disclosure: We have no position in CNSX:SPR and have not been compensated for this article.