- As the
anticipated legalization of edible cannabis products approaches in Canada,
Sproutly is developing an infused beverage lineup by entering into a joint
venture with Canadian beer maker Moosehead Breweries
- The JV
creates a standalone company drawing on Sproutly’s water-soluble Infuz2O
technology and Moosehead’s decades of beverage market experience
- The
proprietary Infuz2O technology offers the advantage of a controlled
rapid-on/rapid-off effect, similar to recreational cannabis use but
without being smoked
- The
cannabis-infused beverage market is expected to generate revenues in the
billions by 2024 as consumers seek alternatives to alcohol
Sproutly Canada Inc. (OTCQB: SRUTF) (CSE: SPR) (FRA: 38G) will
lend its technological breakthrough in naturally produced, water-soluble
cannabinoids to a joint venture with one of Canada’s oldest and largest
independent breweries to create a line of non‐alcoholic cannabis-infused
beverages, anticipating the legalization of edible forms of cannabis in Canada
later this year.
The joint venture between Sproutly and OCC Holdings Ltd., an
affiliate of Moosehead Breweries Limited, will be structured as a standalone
company with its own board of directors and management team. Sproutly and
Moosehead are working through the legal details of the venture, but they expect
to have it up and running by May 31, as stated in a news released detailing the
plans (http://ibn.fm/tRQzF).
The joint venture’s product line will utilize Sproutly’s
proprietary Infuz2O water-soluble cannabis formulation to create a truly
natural cannabis beverage experience that serves as an alternative to alcoholic
products. The Infuz2O technology is expected to grant the beverages a rapid
onset and offset time similar to traditional flower cannabis, for an immediate,
controllable and good-tasting recreational cannabis experience lasting up to 90
minutes. Traditional cannabis oils, on the other hand, may last for hours and
have a more unpredictable duration.
Moosehead, in turn, will lend its respective strengths to
the venture, providing proven ability in building, marketing and selling beer
on an international scale over the course of more than 150 years.
“With the anticipated legalization of edibles in Canada
later this year, Moosehead has made the strategic decision to enter the
cannabis beverage market,” Moosehead CEO Andrew Oland stated in a news release.
“As a 152 year old company spanning six generations, we are very selective about
new business opportunities. After a significant amount of due diligence on
Sproutly’s APP technology and Infuz2O water soluble cannabinoids vs other
competitive technologies, we are excited to announce this joint venture. With
their advanced technology and our long-standing product development experience,
we expect to bring to Canadian consumers cannabis beverages that address the
major issues currently limiting appeal of this category in other markets.”
Each company will hold a 50 percent interest in the JV and
have the right to nominate three directors. Moosehead executive Matthew Oland
has been named incoming CEO of the venture, and Sproutly will determine the
board chairperson. The contract for Sproutly’s exclusive Infuz2O service will
last five years, with the potential for extension as revenue targets are met.
“This partnership with Moosehead marks an important
milestone in Sproutly’s mission of delivering a safe and consistent whole plant
experience from cannabis, with a lead position in the beverage market,”
Sproutly CEO Keith Dolo added. “We have developed a relationship with Moosehead
built on trust and our shared vision of creating safe, responsible and
high-quality cannabis beverages and we look forward to making this a reality
for Canadian consumers.”
A presentation on the JV (http://ibn.fm/P6zfY) states that the beverages will
initially be marketed only in Canada, maintaining the ability to enter the
European market if and when edible recreational cannabis use is legalized
there.
In early April, Sproutly announced that wholly owned
subsidiary Toronto Herbal Remedies Inc. (“THR”) had been granted a processing
license from Health Canada that allows THR to produce cannabis oil and related
products (http://ibn.fm/fmFqX).
The license allows Sproutly to extend development of the cannabis strain
formulations that the company plans to use in its cannabis beverages and to
perform shelf-stability and other necessary testing in anticipation of
legalized edibles.
Deloitte researchers predict that the cannabis-infused
beverages sector will reach somewhere between $900 million and $4.4 billion by
2024, depending on the percentage of the market it captures (http://ibn.fm/tug3z).
For more information, visit the company’s website at www.Sproutly.ca
NOTE TO INVESTORS: The latest news and updates
relating to SRUTF are available in the company’s newsroom at http://ibn.fm/SRUTF
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