Sproutly Receives Processing License from Health Canada

April 1, 2019 Off By BusinessWire

NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES

VANCOUVER, British Columbia–(BUSINESS WIRE)–Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FSE: 38G) (“Sproutly”
or the “Company”), is pleased to announce that the Company’s
wholly-owned subsidiary, Toronto Herbal Remedies Inc. (“THR”), a
licensed producer under the Cannabis Act, has received a processing
licence from Health Canada effective March 29, 2019 (the “Processing
License”). 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.

“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.”

“We have completed a substantial amount of formulation work to-date with
our proprietary, naturally produced, water soluble cannabinoids, which
we have named Infuz₂O. With the grant of our Processing
License, we can extend formulation development work with the cannabis
strains which we plan on utilizing in our cannabis beverages in Canada.
It also allows us to perform the required shelf-stability and other
necessary testing to be ready for the legalization of cannabis beverages
later this year,” commented Dr. Arup Sen, Chief Science Officer &
Director. “In addition to the anticipated launch of our cannabis
beverages utilizing Infuz₂O, we are equally excited about
commercializing products containing our Bio Natural Oils, which provide
substantially different characteristics than other oil-based products on
the market today. Our Bio Natural Oils deliver the full-spectrum of
cannabinoids and terpenes of the strain from which they are made, and
thus empower the consumers to enjoy the experience of their preferred
strain of choice in an edible form, ” he added.

About APP Technology

APP Technology is a proprietary process exclusively licensed from
Infusion Biosciences Inc. (“Infusion Biosciences Inc.”) for
certain jurisdictions. The technology is able to gently recover both the
water-soluble bioactive materials as well as the plant’s oil-based
materials and other phytochemicals present in the plant which include
beneficial terpenes, vitamins, micronutrients and other plant oils. The
technology uses a patent pending process, proprietary reagents and
trade-secrets to accomplish this. APP Technology produces two unique
finished ingredients from cannabis and hemp plants:

Infuz₂O – A
naturally water-soluble cannabis solution which fully dissolves in
water and can be directly added in beverage formulations to deliver
the effects of cannabis with a fast onset time of less than 5 minutes,
clearing (offset) within 90 minutes; and,
Bio Natural Oil – Cannabinoid oils directly infused into
natural oils for edibles or topical application while retaining strain
specific characteristics.

The development of Infusion Biosciences’ APP technology and the creation
of its Infuz₂O and Bio Natural Oil, is based on over 12 years
of R&D on the recovery of water soluble phytochemicals from medicinal
plants and over 25 years in discovery and development of biotechnology
and pharmaceutical drugs.

About Sproutly Canada, Inc.

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 clamouring 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.

For more information on Sproutly, please visit: www.sproutly.ca.

Forward-Looking Statements

Cautionary Note Regarding Forward-Looking Statements: This release
includes certain statements and information that may constitute
forward-looking information within the meaning of applicable Canadian
securities laws or forward-looking statements within the meaning of the
United States Private Securities Litigation Reform Act of 1995.
Forward-looking statements relate to future events or future performance
and reflect the expectations or believes regarding future events of
management of Sproutly Canada. Generally, forward-looking statements and
information can be identified by the use of forward-looking terminology
such as “intends” or “anticipates”, or variations of such words and
phrases or statements that certain actions, events or results “may”,
“could”, “should”, “would” or “occur”. This information and these
statements, referred to herein as “forward‐looking statements”, are not
historical facts, are made as of the date of this news release and
include without limitation, statements regarding discussions of future
plans, estimates and forecasts and statements as to management’s
expectations and intentions with respect to, among other things, the
expected launch of the Company’s first line of beverage or edible
products. These forward‐looking statements involve numerous risks and
uncertainties and actual results might differ materially from results
suggested in any forward-looking statements. These assumptions, risks
and uncertainties include, among other things, the Company successfully
completing the development and production of its first line of beverage
or edible and cannabis products and obtaining all applicable regulatory
approvals from global jurisdictions including Health Canada. Although
management of the Company has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward-looking statements or forward-looking information,
there may be other factors that cause results not to be as anticipated,
estimated or intended, such as the Company’s inability to successfully
develop and produce its first line of beverage or edible products or the
Company’s inability to obtain any necessary regulatory approvals. There
can be no assurance that such statements will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not place
undue reliance on forward-looking statements and forward-looking
information. Readers are cautioned that reliance on such information may
not be appropriate for other purposes. The Company does not undertake to
update any forward-looking statement, forward-looking information or
financial out-look that are incorporated by reference herein, except in
accordance with applicable securities laws. We seek safe harbor.