Sproutly (SPR.C) has posted results from its third quarter.
The company’s Q3 ended Nov. 30, 2018. After completing a $20.7 bought deal financing, the company increased its cash position from $300,000 to $11.5 million by the end of Q3. Sproutly’s working capital also totaled $4.2 million as of quarter’s end.
“We continued to make significant progress toward a number of our key corporate initiatives in Q3. We completed a $20.7-million bought deal financing, which strengthened our balance sheet and provides us the ability to accelerate our objectives for fiscal 2020,” said Keith Dolo, chief executive officer of Sproutly.
Though Sproutly is yet to generate revenue from operations, the company continues to make progress on key initiatives and its expansions.
Sproutly’s Q3 achievements
Sproutly’s performance in Q3 also includes the advancement of a number of interests: the company signed a LOI with Global Canna Labs, the Caribbean’s largest medical cannabis producer.
As per the deal, Global Canna Labs will develop, produce, and market products–including edibles and topicals–using Sproutly’s licensed APP technology.
Sproutly has also successfully developed their initial portfolio of functional beverages, as reported by Equity.Guru’s own Lukas Kane in November 2018.
Sproutly’s initial drink portfolio:
- Focused Energy Drink – Formulated to deliver mood uplifting & focused energy without the use for caffeine or stimulants. Containing a blend of minerals, vitamins, natural plant chemicals, natural flavors, and Infuz2O derived from one or more strains of cannabis to complement the experience.
- Relaxation Drink – Formulated to deliver relaxation and stress relief. Containing a blend of minerals, natural plant chemicals, natural flavors, and Infuz2O derived from one or more targeted strains of cannabis to complement the experience.
- Sleep and Anxiety Relief Drink – Formulated to reduce anxiety and assist restful sleep. Containing a blend of minerals, plant and other natural chemicals, natural flavors, and Infuz2O derived from a targeted variety of hemp to complement the experience.
Sproutly’s Q3 board shuffle
Following the November 2018 resignation of Aman Bains, formerly a director with Sproutly, the company announced the appointment of Michael Bellas as his replacement.
Bellas is the founder, chairman and CEO of Beverage Marketing, a company which offers to “advise owners of middle-market beverage companies on asset sales, asset acquisitions and valuations.”
The addition of Constantine Constandis also rounds out Sproutly’s board with further beverage industry expertise.
The company announced the appointment of Constantine Constandis to its advisory board. Constandis over 34 years of experience in the wine and spirits industries of North America, Europe and Asia.
Constandis was the former CEO of Corby Spirit and Wine (CSW.T), the manufacturers of Polar Ice Vodka and J.P. Wiser’s Canadian whiskies.
It’s clear Sproutly is serious about the beverage game. With cannabis edibles en route in 2019 pending legislative approval, this could be Sproutly’s year.
Full disclosure: Sproutly is an Equity.Guru marketing client.