The first shares of Sproutly (SPR.C) began trading at 6:30 a.m., July 9, 2018 (PST) on the Canadian Securities Exchange. By 8:20 a.m. the stock is up 60% (.36 to .96) on 2.1 million shares traded.
SPR just received a cultivation license for a completed 16,600 square foot grow facility (1,400 kg per year), designed to produce pharma-grade weed.
The facility is a 15-minute drive from downtown Toronto.
That’s a good thing – and we’ll get into it later.
Right now, we are zeroing in on Sproutly’s Bioscience Division. It owns propriety technology, that – if commercially successful – will radically change the retail weed beverage market.
Sproutly’s patent-pending Aqueous Phytorecovery Process (APP) is a “fundamental paradigm shift within the cannabis industry.”
Replacing traditional “water-compatible” solutions with true water-solubility improves the body’s ability to utilize the effects of cannabinoids.
The difference between “compatible” and “soluble” may sound niggly – but it isn’t.
On a scale of bioscience sophistication – it’s the difference between a pogo stick and a Lamborghini Aventador Roadster.
Equity Guru’s Chris Parry described “water-soluble cannabis” as “The great white whale of the cannabis world.”
“If you can take the good stuff into a soluble form without having to mostly destroy its inherent goodness,” wrote Parry, “you’re on the shelves at Loblaws the moment everything is legal.”
Sproutly owns exclusive rights to the Infusion Biosciences’ APP Technology for the recreational and medical cannabis markets in Canada, Australia, Israel, Jamaica, Germany, and the European Union.
Current consumer products are dominated by extracted oils that can only be delivered in vaporizers and selected edibles.
“Beverage products are currently limited to the use of emulsifiers or oil nanoparticles and not true solutions in water,” states the Sproutly website, “These not only limit proper delivery to the body but also prevent a broader acceptance of the current products.
The APP technology doesn’t just provide nebulous health benefits, it changes the uptake and release cycles of cannabis ingestion.
With APP you get high quicker, and un-high quicker.
That means you can go to a social lunch, consume a water-soluble cannabis beverage, walk back to your office, and re-engage with your professional duties.
It also means you can unwind at dinner, and still be able to read a novel before you go to bed.
Many intoxicant-consumers like to get nimbly in – and out – of their high.
“Our competitors have been working on water compatibility not water solubility,” confirmed Sproutly CEO Keith Dolo, in an exclusive Equity Guru interview, “They are focussed on oils being encapsulated or emulsified into a liquid. The Infusion Bioscience patent-pending technology covers both the process and the reagents.”
Patent-pending status provides 5 benefits:
- Reduced costs: Formality requirements for a provisional application is significantly reduced compared to a non-provisional application, so the costs are lower.
- Secure Foreign Rights: The Paris Convention (signed by 165 countries) recognizes patent priority in each of those signatory countries. The pending-patent creates a priority date which can be used to establish ownership in any Paris Convention country.
- The Right to Promote: The inventor can begin promoting, seeking licensees and partners, and raising money to develop and commercially exploit the technology.
- Placeholder protection: Patent-pending applications can be referenced by subsequent non-provisional applications, combining new technology into a single document. This can be particularly advantageous when an invention is undergoing development.
- Extra Time: Patent-pending filing adds an additional year to the term of the patent grant, and drapes a curtain in front of the some of the details of the proprietary technology.
“We can’t say that no one will ever try to replicate or discover what IBS has achieved,” states Dolo, “But fair warning – it has taken six years of research by a PHD in biochemistry from Princeton to unlock this ground-breaking discovery. It will be difficult for anyone to replicate, and if they do, our patent covers the process and the reagents together.”
Grow Facility highlights:
- Closest licensed grower to Toronto of any Canadian producer
- Level 9 vault allows them to hold $32 million in product
- Proximity to Toronto allows TWO HOUR DELIVERY
- Full lab on site, with $500k in equipment
Sproutly’s Bioscience Division has been working on formulations in the US for over 8 months and anticipates products going to market within 45 days in the state of Washington.
Full Disclosure: Sproutly is an Equity Guru marketing client, and we are purchasing stock on the first day of trading.