Sproutly Canada (SPR.C) has executed a definitive agreement with Cannabis Manufacturer’s Guild (CMG). The agreement allows Sproutly to utilize brands developed by CMG and its affiliates as well as expand its innovative product portfolio, which will be produced and sold through Toronto Herbal Remedies, Sproutly’s wholly-owned subsidiary.
“We are very excited to be entering this collaborative agreement with the Sproutly team to bring a new wave of differentiated 1.0 and 2.0 cannabis products to the Canadian market…Together with Sproutly, CMG intends on releasing half a dozen new brands this year, some of which are already slated for release in select provinces, with each brand targeting consumer segments and addressing specific gaps in the Canadian market. With CMG’s extensive network of brands, technologies and processors, CMG and Sproutly will be working hand in hand with the entire cannabis industry to foster a new era of cannabis innovation, all with the consumer in mind,” said James Williams, President of CMG.
Much like a guild in any online RPG video game, the Cannabis Manufacturer’s Guild is committed to helping ‘players’. According to CMG, the Guild works with focused cannabis operators across the cannabis supply chain to bring products to market faster, introduce new business opportunities, secure manufacturing and sales contracts and protect the interest of it Guild members. In doing so, CMG is committed to ensuring the prosperity of legal cannabis operations both in Canada and globally.
In this case, the player is Sproutly and the guild is CMG. In collaboration with CMG, Sproutly will leverage the Guild’s expertise in branding, commercialization, and distribution of cannabis products for underserved categories in the Canadian market. Additionally, this agreement will allow Sproutly to sell CMG branded products and also facilitate potential business-to-business sales of the Company’s extracts to CMG’s network of Guild members.
“This is yet another key milestone as we continue to execute on our business transformation plan that is now focused on marketing and sales of innovative cannabis products.” said Dr. Arup Sen, Chief Executive Officer and Director of Sproutly.
According to CMG, outside of the nominal membership fees, the Guild does not get paid until after a transaction is completed. With this in mind, CMG’s compensation structure is based on completed transactions, meaning the seller can agree to provide royalties to CMG or a one time fee following the delivery of a successful ‘win’. If you ask me, this sounds like a pretty sweet deal for Sproutly. The Company now has access to an extended portfolio of products and a new network of potential buyers through CMG’s Guild members. With a line of innovative cannabis-infused beverages on the horizon and its latest agreement with CMG, Sproutly is looking ripe for the picking.
Sproutly Canada’s share price opened at $0.07, up from a previous close of $0.06. The Company’s share are currently trading at $0.065 as of 12:13PM ET. Shares are up 8.33% indicating that there has been some change following the news.