If there’s one OTC stock that’s perhaps stolen the show over the past week, it’s probably Sproutly Canada Inc (OTCMKTS:SRUTF). This is a cannabis-infused beverage play that has rallied as much as 150% in the past five trading sessions, propelled higher by the company’s announcement that the company’s wholly-owned subsidiary, Toronto Herbal Remedies Inc., a licensed producer under the Cannabis Act, has received a processing license from Health Canada effective March 29, 2019.
According to the release, the Processing License allows THR to produce cannabis oil and related products, and will also allow the company to conduct certain research and development activities, including the formulation of proprietary beverage products.
Sproutly Canada Inc (OTCMKTS:SRUTF) frames itself as Sproutly Canada, Inc. produces and sells cannabis in primarily Canada. The company is headquartered in Vancouver, Canada.
According to company materials, “Sproutly’s core mission is to become the leading supplier to the cannabis beverage and edibles market. Our Toronto based facility, licensed under the Cannabis Act, was built to cultivate pharmaceutical grade cannabis to supply a technological breakthrough in producing and formulating the first natural, truly water-soluble cannabis solution. Our water-soluble ingredients and our bio-natural oils will deliver revolutionary brands to international markets that are clamoring for well-defined commercial 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.”
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As noted above, SRUTF just announced that the company’s wholly-owned subsidiary, Toronto Herbal Remedies Inc., a licensed producer under the Cannabis Act, has received a processing license from Health Canada effective March 29, 2019.
Traders will note 120% tacked on to share pricing for the company in the past month. Furthermore, the listing has seen interest climb, with an increase in recent trading volume of above 470% above the average volume levels in play in this stock over the longer term.
“We are making steady progress towards achieving Sproutly’s mission of delivering a safe and consistent whole plant experience from cannabis, with a lead position in the beverage market. The Processing License grant is a major milestone towards the path to commercializing our cannabis beverages and other edible products. Specifically for cannabis beverages, we can now continue to advance our formulation work at our own production facility as we prepare for the legalization of cannabis beverages later this year,” said Keith Dolo, CEO & Director.
“Our plan is to deliver cannabis beverages that will not only look and taste great, but also where consumers will feel the cannabis effects within five minutes and dissipate within 90 minutes. With Infuz2O’s fast onset and fast offset characteristics the experience is more similar to drinking a beer, compared to traditional cannabis oils that have an unpredictable, multi-hour experience.”
Now commanding a market cap of $121.18M, SRUTF has about $8.6M in cash on the books, which compares with about $6.6M in total current liabilities. The company is pre-revenue at this point. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $SRUTF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $SRUTF, either long or short, and we have not been compensated for this article.