Sproutly Canada Reports Unaudited Q2 Results With Lower Revenue YoY, Improved Net Loss

Sproutly Canada, Inc. SPR (FRA: 38G) SRUTF released its unaudited second-quarter financial results Friday revealing net revenue of CA$109,573 ($88,529) compared to CA$195,547 in the same period of the prior year.

Q2 Financial Summary

• Gross profit amounted to CA$71,233 compared to CA$36,811 in the corresponding quarter of 2020;
• Net loss was CA$310,155, which is notably lower than the CA$1.78 million from in the second quarter of the previous year;
• At the end of the reporting period, on August 31, Sproutly Canada had CA$140,721 in cash, versus CA$112,102 it had at the end of August 2020.

"We continued to make progress in the development of our 2.0 products through the first half of fiscal 2022, as well as establishing the necessary groundwork with the partnership with Kingston Cannabis Inc.,” Dr. Arup Sen, CEO and director of Sproutly stated. “We are focused on long-term sustainability in order to deliver 2.0 and in time, 3.0 products, to the Canadian market and believe that partnerships like the one with KCI are an important next step.”

Q2 Operational Highlights And Milestones

• The company settled CA$8,222.22 in interest, in relation to a convertible debenture indenture between Sproutly and TSX Trust Company via issuance of 91,358 of its shares a price of $0.09 per share;
• It also settled accrued and unpaid interest, in relation to a convertible debenture indenture between the company and TSX Trust Company, in the amount of CA$70,000 through the issuance of 1.17 million shares at a price of $0.06 per share;
• It acquired the primary assets of CannaHive Inc., superseding the definitive agreement between the companies announced in April of this year.

Subsequent Events

• Sproutly settled outstanding current debt in the total amount of CAA$145,448.44 through the issuance of 2.91 million shares at a price of $0.05 per share;
• It also entered into a letter of intent to team up with Kingston Cannabis Inc. to produce its cannabis-infused beverages through a co-packing arrangement.

Price Action

Sproutly’s shares closed Friday's market session 5% higher at $0.04 per share.

Photo: Courtesy of Jeff W on Unsplash