Sproutly’s (SPR.C) has successfully grown and harvested its first two test batches of cannabis, exceeding expected output and justifying production at full capacity.
The company says it aims to ramp up production as their license applications mature prior to transitioning into sales and extraction. The harvest happened at a facility owned by their subsidiary, Toronto Herbal Remedies.
Sproutly says it now hopes for the same level of success across all 12 of their flowering rooms.
“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,” said Bryan Semkuley, president of Sproutly.
Now that the company has been successful with the original harvest, they have scheduled to introduce plants into 10 new rooms over the next two weeks.
Sproutly is implementing a perpetual harvest plan that would see the introduction of a new plan every week.
Brand and product development
The company focused its brand strategy around its high-quality, small-batch flower and anticipates launching it as soon as its sales license comes in.
Cannabis edibles are expected to go live in October 2019, a full year after cannabis itself was legalized. Sproutly intends to be a big part of that, leveraging their APP technology to make a big splash in the newly emergent market for water-soluble cannabis beverages.
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.
APP stands for Aqueous Phytorecovery Process. The technology was developed by Infusion Biosciences, one of Sproutly’s subsidiaries. The process allows for recovery of 85-90% of the total bioactive water-soluble cannabinoids and other oils from the cannabis plant.
Here is Dr. Arup Sen, Sproutly CSO, talking about what sets APP technology apart from others that claim water solubility:
Another strategy that Sproutly is considering for injection into the edibles market includes a strategic partnership with existing beverage brands.
The company has been talking with a few beverage companies, but so far haven’t been successful in finding a good fit.
Licensing
The company hit the ball out of the park in 2018 when it comes to licensing.
Sproutly’s first license upgrade let them sell cannabis to other LPs.
On Nov. 1, 2018, the company submitted an “addition of activity” to its Health Canada license in order to produce cannabis oils. This addition to the license meant that he company could do research and development, and extract oils in its THR facility.
Nine days later, the company received regulatory approval for the remaining 16,600 square feet at the THR facility for additional grow, operations and cultivation.
–Joseph Morton
Full disclosure: Sproutly is an Equity.Guru marketing client.