Sproutly Canada Inc, an Edibles and Beverage Cannabis Firm
Sproutly Canada Inc (OTCMKTS:SRUTF, CNSX:SPR) is a cannabis penny stock in the truest sense. But thanks to its disruptive “INFUZ2O,” solution, which regulates how cannabis is delivered and consumed, SRUTF stock probably won’t be a penny stock for long.
Sproutly is a financially solid company that has made significant progress toward a number of its key corporate initiatives.
Over the last few months, it completed its first two harvests of its premium-quality, small-batch cannabis; provided an update on the launch of “CALIBER,” its premium cannabis brand for the recreational market; received a license to produce cannabis oil and related products; and announced a joint venture with Moosehead Breweries Limited to launch cannabis-infused beverages in Canada.
For the remainder of the year, the Vancouver, British Columbia-based company expects to receive its sales license and commence sales of cannabis flower, oil, edibles, and beverages.
Sproutly stock is trading around $0.60 at the time of this writing, but if everything falls into place, it could be trading three times as high by the end of 2019.
Sproutly Canada Inc Overview
Sproutly’s main objective is to become the leading supplier in the cannabis beverage and edibles market.
The company’s 16,000-square-foot Toronto facility was built to cultivate pharmaceutical-grade cannabis.
The fully operational facility can produce up to 1,400 kilograms (about 3,086 pounds) of dried cannabis flower and 700 kilograms (about 1,543 pounds) of trim. It also has Aqueous Phytorecovery Process (APP) technology processing capacity of up to 10,000 kilograms (about 22,046 pounds) annually, which equates to 100 million 10-milligram doses. (Source: “Corporate Presentation,” Sproutly Canada Inc, last accessed May 17, 2019.)
The company’s biggest growth potential comes from the beverage market. While cannabis and alcohol companies everywhere are waxing eloquent about their joint ventures, there is one major problem with cannabis and beverages: the onset time.
The first company that can create a cannabis-infused beverage with a reliable buzz period will have a massive advantage. Right now, that doesn’t exist—except with Sproutly’s proprietary INFUZ2O solution.
The effects of inhaled and ingested cannabis using outdated technology can vary significantly, taking up to three hours to kick in and possibly lasting for more than eight hours. It’s tough to plan your day around traditional cannabis oils that have unpredictable, multi-hour experiences.
INFUZ2O regulates the speed and efficiency of cannabis; the solution can deliver the high effect in as little as five minutes, and it can last up to 90 minutes. It also provides an edible experience that’s similar to that of traditional flower cannabis, without the need to inhale smoke.
Sproutly’s competitors use outdated emulsifiers, encapsulation, and chemical modification techniques.
The way cannabis is delivered and consumed may sound like a niche market, but it’s not; it’s very lucrative.
Sproutly Canada Inc Stock
|SRUTF Stock Information|
|Market Cap||$110.9 million|
|Shares Outstanding||161.1 million|
|50-Day Moving Average||$0.60|
|200-Day Moving Average||$0.39|
(Source: “Sproutly Canada, Inc. (SRUTF),” Yahoo! Finance, last accessed May 17, 2019.)
Sproutly & Moosehead Announce Joint Venture to Launch Cannabis-Infused Beverages
On April 30, Sproutly and Moosehead Breweries announced that they entered a definitive agreement to form an exclusive joint venture to develop, produce, and market non-alcoholic, cannabis-infused beverages in Canada using INFUZ2O. (Source: “Sproutly Announces Joint Venture with Moosehead Breweries to Launch Cannabis-Infused Beverages In Canada,” Business Wire, April 30, 2019.)
Moosehead Breweries is the oldest and largest independent brewery in Canada, selling more than 140 million cans/bottles of beer annually throughout Canada, the U.S., and 15 other countries.
INFUZ2O is a naturally produced water-soluble cannabinoid solution that is odorless and smokeless, which will allow Moosehead to produce a clear cannabis beverage that is easier and faster to formulate.
The joint venture is structured as a 50/50 equity ownership. Moosehead will provide infrastructure support and Sproutly will provide custom compositions.
The joint venture has exclusive rights to use INFUZ2O for cannabis beverages for a period of five years, with a possible two-year extension. There is also a chance for the partnership to enter the massive European market once recreational cannabis is legalized in the continent.
Sproutly Receives Processing License From Health Canada
On April 1, Sproutly announced that its wholly owned subsidiary, Toronto Herbal Remedies Inc., had received a processing license from Health Canada effective March 29.
The license lets Toronto Herbal Remedies produce cannabis oil and related products and allows it to conduct certain research and development activities. (Source: “Sproutly Receives Processing License from Health Canada,” Business Wire, April 1, 2019.)
CEO and Director Keith Dolo said:
The Processing License grant is a major milestone towards the path to commercializing our cannabis beverages and other edible products. Specifically, for cannabis beverages, we can now continue to advance our formulation work at our own production facility as we prepare for the legalization of cannabis beverages later this year.
Sproutly Canada Inc is a great marijuana stock with a disruptive technology that could propel its price out of penny-stock territory.
To help it get there, Sproutly started a joint venture with Moosehead Breweries, received a processing license from Health Canada to produce cannabis oil, completed its first two harvests of premium-quality, small-batch cannabis, and has made significant progress toward the launch of its premium recreational cannabis brand.
The company is still in its infancy, but it’s growing up fast. Look for Sproutly stock to be one of the biggest gainers in the cannabis field in 2019 and 2020.