Sproutly Expands LOI with CannaHive Inc.
VANCOUVER, British Columbia--(BUSINESS WIRE)--Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FSE: 38G) (“Sproutly" or the “Company”), has executed a revised and expanded Letter of Intent (the “LOI”) to enter into a commercial relationship with CannaHive Inc. (“CannaHive”). This agreement supercedes the LOI with CannaHive announced on January 5, 2021.
The original agreement was focused solely on utilizing CannaHive’s manufacturing and packaging equipment and intellectual property to produce cannabis dissolvable powder at the Company’s subsidiary, Toronto Herbal Remedies’ (“THR”), licensed facility. The agreement has now been expanded to include CannaHive’s proprietary equipment and methods to manufacture cannabis infused confectionaries, such as gummies and candies, at the THR facility.
“As we progressed through our negotiations on the initial agreement with CannaHive, it became evident to both parties that there was a greater opportunity to leverage the THR facility for the benefit of all.” said Dr. Arup Sen, Chief Executive Officer and Director of Sproutly. “CannaHive’s desire to place their proprietary infused confectionary equipment in our facility allows us to further the conversion of THR to a 2.0 facility and expand our capability to produce quality infused products at significant volumes for the Canadian market.”
“Sproutly’s unique IP is not only original, but it’s also very effective and we believe it can deliver an exceptional customer experience. We see real value in it.“ said Jon Séguin, co-CEO and Director of CannaHive. “We’re looking forward to integrating Sproutly's technology into ours as part of this partnership. Their technology definitely contributed to our decision to bring our confectionary equipment into their facility. It fits our go-to-market strategy perfectly.” added Séguin.
About Sproutly Canada, Inc.
Sproutly’s core objective is to become the leading supplier of unique ingredients and customized formulations to the cannabis beverage and edibles market. Our natural water-soluble Infuz2O and BioNatural Oils will deliver revolutionary brands to international markets that are striving to produce a diverse portfolio of differentiated consumer 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.
For more information on Sproutly, please visit: www.sproutly.ca.
About CannaHive Inc.
CannaHive is a privately owned manufacturing management service provider. They transfer technology and know-how from the pharmaceutical industry to the cannabis space through projects tailored to existing licensed facilities' characteristics. CannaHive sets up white label and private label programs to manufacture and package cannabis 2.0 products, which turn licensed producers looking to reduce their expenditures and raise their profitability into innovative players in the industry.
For more information on CannaHive Inc., please visit: www.cannahive.ca
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that may constitute forward-looking information within the meaning of applicable Canadian securities laws or forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements relate to future events or future performance and reflect the expectations or believes regarding future events of management of Sproutly. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as “intends” or “anticipates”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “should”, “would” or “occur”. This information and these statements, referred to herein as "forward‐looking statements", are not historical facts, are made as of the date of this news release and include without limitation, statements regarding discussions of future plans, estimates and forecasts and statements as to management's expectations and intentions with respect to, among other things, timing relating to the Company's ability to complete a definitive agreement with CannaHive and launch additional products.
These forward‐looking statements involve numerous risks and uncertainties and actual results might differ materially from results suggested in any forward-looking statements. These assumptions, risks and uncertainties include, among other things, the Company’s inability to launch or supply its products in Canada; the Company's inability to complete a definitive agreement with CannaHive and launch additional products; potential negative consumer, investor or public perception of the additional product lines; changes in consumer preferences and product trends; and political, legal and regulatory uncertainty relating to cannabis products generally. In making the forward looking statements in this news release, the Company has applied several material assumptions, including without limitation, that the Company will launch its products in Canada; that the Company’s products will be positively received by consumers in Canada; and that the Company will continue to develop and launch its Cannabis 2.0 products. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that are incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.
Sproutly Canada, Inc.
Dr. Arup Sen, Chief Executive Officer and Director of Sproutly Canada, Inc.
Thierry Gervais, Chief Operating Officer and Director of CannaHive, Inc.