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Up/down/sideways/Trader......How would you know what beer companies want? roflmao. No interest in water soluble huh? hahahahahah!
I come from a technology background and I can assure you that water soluble technology is amazing. Wasn't it you that stated CBD and THC were basically a con job? Let me clue you in on something bro,..
Now sit down, grab that Falstaff or Pabst beer you must drink, and read and learn: Todays edibles are still very unreliable. You rarely know when you will feel the effects, or how long they will last. This is a big problem. Some edibles take longer than others to start to feel the sensation. Then you have no idea how long the sensation will last. Because of the uncertainty of how long before the edibles kick in, often people take more than they should, figuring they did not take enough of the edible. Now they have taken too much and they have no idea how long before the high will end. It creates quite an unpleasant situation. OR...you get the smell of cannabis in the edibles. Guess what? Water soluble eliminates all the guess work, and the taste is not nearly as much of that cannabis taste. Ditto with beverages,
Hey, why don't you go to a dispensary and ask the budtenders if water soluble is desirable. Explain to them how the technology works Oh wait, you obviously have no idea. Ok then....ask those who consume edibles what the down side is they find with edibles.. Oh wait, that would require you to get off the key board, quit being a dick, and to actually research. My bad.
Dude are just bored bro? Why are you on this board? What purpose do you have posting here?
You NEVER have anything remotely intelligent to lend to this board. I don't get it.
I have an Idea...instead of taking the time to post here, go get a workout in, read a book, mediate, learn to play a musical instrument. Do something constructive man. You are wasting everyones time here and I cannot believe I am even answering your post. I really can't. Last time.
Here is some technical info and interviews with Chief Scientific Officer and CEO. I apologize for how long this is but I could not provide a link as its a private investors letter and you would be asked to sign in. It's a great read, but a long read.
Beverages are going to be the next big cannabis industry.
Cannabis soda may seem like a novelty, but it reality it could be one of the biggest drivers for new cannabis companies.
You see, despite all of the progress that has been made, there is still a stigma on smoking marijuana.
While it is becoming far more mainstream, there is still that lingering discomfort when someone sparks up a big joint at a casual dinner party. Most people have no problems with pounding a few brews, draining a bottle or two of Pinot Noir or knocking back a half-a-dozen martinis. But if you fire up a doobie, you'll still get a few cock-eyed glances.
But if you were to show up to a party with a couple of cannabis colas, I doubt too many other guests would bat an eye. In fact, they may be more interested than you'd think.
That's because less people are smoking marijuana and more people are eating and drinking it in more palatable forms.
Cannabis beverage sales quietly raked in over $35 million last year. That's only including legal states like California, Colorado, Oregon, and Washington. We've seen double-digit growth over the past three years. As more states legalize marijuana, these numbers are going to go crazy.
But perhaps the most important part for investors is that big beverage companies are already placing their bets and planning massive buyouts of small companies. We've already seen that when Constellation Brands — which sells Corona and Modelo beer, Svedka vodka, and other big brands, ponied up around $191 million for a 9.9% stake in Canopy Growth Corp.(WEED.TO).
More companies will follow...and more importantly for our stocks, more global beverage companies will be looking to buy up the smaller guys, which I think it the ultimate end game for many of them.
I found one in the very early stages that could be a prime buy-out target...
What excites me about the company is the patent they have pending for water-soluble cannabis ingredients. Currently companies use butane or CO2 to scorch the cannabis pant in order to extract oil for smoking, edibles and other products. Oil is not soluble and is difficult to properly infuse into edible products. Our bodies simply don't process them quickly or efficiently. Water, on the other hand, is much easier and cleaner for such uses.
Sproutly teamed up with Infusion Biosciences, which is a biotech company that specializes in discovering cannabis-based technologies. They developed two ingredients based on their patent-pending "Aqueous Phytorecovery Process":
Infuz2O: The first truly water-soluble cannabis solution to be formulated into beverages/drinks.
BIO-NATURAL OIL: Cannabinoid oils infused into natural edibles or transdermal delivery while
retaining strain specific characteristics (“BNO”)
They expect the results to be a revolution for the industry for these reasons:
Predictable – less than 5 mins to feel effects, less than 90 mins to wear off
Experience – effects comparable to smoking and vaping
Discrete Consumption – odorless and smokeless
Formulation Versatility – numerous end-user applications
Precise Dosing – ability to deliver a measureable amount of cannabis
You can clearly see how valuable such a technology would be. You could drink a soda, have it kick in almost instantly, and then wear off in plenty of time for you to continue your day. Or, if you are so inclined, drink another one or two.
That team is headed by Dr. Arup Sen, who has over 35 years of experience in research and executive management positions at biotechnology and pharmaceutical companies including J&J, Biomet, GCC and Tokuyama Soda of Japan and Sandoz/Novartis. He also was a faculty member at the National Cancer Institute and at the Scripps Research Institute focused on cancer research.
He holds five U.S. patents and numerous international patents and pending patent applications in the fields of cancer therapeutics, bone repair biologics and devices and diagnostics.
Oh yeah, he has a PhD from Princeton too.
Credentials like that make me pretty confident that they'll be able to land a patent for water-soluble cannabis products.
Interview with Dr. Arup Sen
Dr. Sen is the Chief Science Officer of the company and has been responsible for several patents and has also been researching cannabis since the 1970s -- long before his peers. I think you'll really enjoy our talk.
Here's part one of our conversation...
Jimmy: Hello Dr. Sen, I appreciate you taking the time to speak with me. I’m sure you are very busy.
Dr. Arup Sen: Oh, yes, how are you?
Jimmy: I'm doing well, thank you. These are exciting times. I just found out about your company recently and have been doing my due diligence. I think you guys are getting into a very lucrative part of the business. I was curious to find out more about how the actual science works with the water soluble cannabis, so I figured you were the guy to talk to.
Dr. Arup Sen: Yes. So, I'm assuming that you have been with and/or following the industry for awhile?
Jimmy: I have, yes.
Dr. Arup Sen: And obviously you have heard the term "water soluble cannabinoid"-- a term being used by a lot of companies because it really seems to take the editorial liberty of calling things water soluble that actually aren't.
Oils, the classic cliché is that oil and water don't mix. That remains true even today. In the laboratory both
pharma companies and market companies, other chemical engineering companies have been doing all
sorts of formulation to keep oil in water without them separating out like you’d see in salad dressing.
You have to shake before you use it.
Jimmy: I like the salad dressing analogy. People can relate to that. Is there a more scientific parallel you could draw?
Dr. Arup Sen: Well, the only exception to that would be what mother nature does and to draw an analogy. Cholesterol as you know is an oil, both effect is different in tissues of our bodies, especially in deposits because the cholesterol is made of components of that.
And it is free oil that's distributed all through the body in specific locations, preferentially versus others. However, how did cholesterol get from one place to another? So the major transport system is the blood.
So, unlike back in the 70s when you went to get your blood drawn to assess is your cardiovascular health in good condition, they would take blood samples, process it, extract out the pure isolated oil (triglyceride, cholesterol, and so on and so forth) and measure it.
However, in the 1980s, Brown and Goldstein made the discovery that even blood is naturally water soluble forms of cholesterol. It’s now named the “good cholesterol” and the “bad cholesterol” (HDL and LDL).
Those are not all droplets. As over time found depending on how mother nature creates those water soluble forms, they are the ones who are able to transport cholesterol that's made in different places to other places where it belongs. So it remains water soluble as they go to their final home, as the story states, and they get deposited there now in the free liquid form – no longer water soluble.
Our question was, does the same thing exist in plants? And then when we planted, for example, chlorophyll (the green pigment) which also is an oil and not water soluble, but you didn't see oil droplets. What you see is an absolute water soluble form of chlorophyll.
Jimmy: What did you find when studying cannabis plants? We’re you able to recreate something similar?
Dr. Arup Sen: The industry for the last 40+ years has either been looking to chemical synthesize THC. In 1977, we used chemically synthesized THC to look at it's effect on normal brain cells versus tumor cells, and so on and so forth. And the toughest part to us is that due to the pure chemical molecules of dopamine, THC does not dissolve in water and as a result, when you put it in laboratory systems of cultured cells, or what have you, it just doesn't go in.
So we resorted to using transport chemicals to get it in, but that's not a natural means and obviously that's not applicable to delivering a product to a human.
Our whole philosophy revolves around two goals. Number one, simply using THC to get people stoned is not the business we want to be in. And we believe it's difficult when we have been developing technology to make molecules water soluble or isolate water soluble from a substance. Different plant chemicals like antioxidants from plants themselves.
We believe that there is a giant market, which is the beverage market, not just cannabis beverages, but beverage which now exceeds $50 billion globally starting from bottled water all of the way to functional beverages and other forms such as non-alcoholic beer, non-alcoholic wine, sleep aids, energy drinks and all of that mount and aggregrate to a 50+ billion dollar market.
So the goal was to produce materials that could actually go into real beverages, not just what the industry considers a “cannabis beverage”. Again, obviously if you're trying to make Pepsi with CBD, you're not going to be able to put in emulcified and encapsulated stuff in Pepsi or Coke or bottled water and products like that.
That's where it all started and we were able to develop patent pending methods to process plant materials both buds and trim, some leaves and the like. We abide without completely disrupting the plant substance which is what's done in all the extraction methods, be it organic solvent, butane or what have you.
Jimmy: From what I’ve read, it sounds like a much more natural process than scorching the plant with butane or other solvents.
Dr. Arup Sen: We kept the material pretty much in its instantaneous state and created a scenario where by the water base material that only contains dietary ingredients, to pull out any water soluble masses of water soluble form. This means either oil or other plant chemicals, be it vitamins or whatever, if it does exist in cannabis plants.
We pulled a whole plant profile of naturally water soluble material from the different strains of plants.
Once that is done and that's what we call Infuz2O, so that's pretty much infusing naturally water soluble forms of all these magnets or bring them to life into water.
Then once that's done, probably the bulk of all these molecules that are in the form of free oil, especially in the buds, not as much in the trims. Because of the way that plant material now is processed after the infused tool material being taken out, the residual plant material and all of the other oils can be simply soaked into any natural oil. So for topical applications for example we'd use coconut oil or jojoba oil for oral administration it's gonna be anything from MCT to olive oil, grape seed oil, anything.
So again without disturbing the natural context or proportion of the oils in the plants, we can pull out a full plant specific - in this industry called the “full spectrum”.
Jimmy: So that is what makes it unique? The lack of disturbance in the plant?
Dr. Arup Sen: The unique thing about the water soluble Infuz2O is that it completely effects the plant species or strain that it comes from. Infuz2O from say, cookies, is completely different from the green, or what have you. It's not disturbing anything unique to that specific plant strain. Not extracting out selective components of the oils that is enriching for THC to be in, what people are usually focused on.
We're specifically presenting the whole plant in a water soluble form to people who do not wish to smoke. They're also providing the beverage industry with the form that again represents the full plant and can be readily added directly to anything from a cough syrup versus an energy drink versus an antioxidant mix or what have you, that can go into the beverage and stay as water solution no matter what you do to it because that's how mother nature created remaining water solutions in blood, in plasma, and plants, liquid and all of that material.
That has been what we have accomplished so far and interesting enough – as one would predict – a lot of water soluble into 2O has been extremely rapid and predictable onset time that doesn't vary from plant to plant, all less than five minutes. As one would expect from any orally administered small molecules, it clears within about 90 minutes. The bulk of it is completely gone, so people come out the high, relaxed at the situation or what have you and the effect of the cannabinoid oil completely disappears, those products are no longer present and or detectable in blood, urine, and what have you.
Again that from a recreational beverage perspective then makes more like a bottle of beer, you can drink one or if you want to get completely plastered, you can drink a 12 pack. So there's a lot of people to judge what they want to do.
Jimmy: I think that's one of the more important points. Can I stop you for a second because I have a couple of questions?
Dr. Arup Sen: Yes.
Jimmy: Because I do want to get into the beverage market, but talking through it, it seems like this is a way to really get the essence of the plant. Instead of having to do a somewhat violent process like butanes or torching, it seems like you really are extracting what makes the plant this special to begin with. Initially I was thinking about this more for beverages like you were saying, but the same process could be used for any number of things.
Dr. Arup Sen: Oh, absolutely. In fact, I didn't give you my dream yet! Back in 1970 when I lived in California – I'm an old man <laughs> – I got my PHD when I was 22 back in 1970. There have been endless impacts of biotech pharmaceutical companies and research and all of that, but it’s a long time for an advocate.
When I was in California, I started collecting wine. I don't think you know this, but in the mid 1970s the U.S wine industry became capable of and recognize the importance of what's called bridle in the wine industry.
40 years later after paying the debt that I accumulated back in 1977, I came back and I saw all these incredibly interesting varieties. I said, "Oh my god, now we should be able to create bridle cannabis beverages." They're much similar to what the wine industry has done.
Jimmy: This is in the late 70s? So you've been at this awhile.
Dr. Arup Sen: Oh, yeah.
Jimmy: That's amazing.
Dr. Arup Sen: Like I said, I'm an old man.
Jimmy: Wow, well way ahead of your time as it seems.
Dr. Arup Sen: The thought of it was mother nature created plants and clearly when she organized the evolution of species and so on and so forth, that all of the interactions between the different living things in the world.
Interview with CEO Keith Dolo
I sat down with CEO Keith Dolo to discuss the new patents the company landed, and where the market is going now that it’s prime takeover time. Coca-Cola and Pepsi and both actively searching for cannabis stocks, and I believe Sprotuly is one of the best under-the-radar options for such a merger.
Jimmy Mengel: Hi Keith, thanks for joining me today.
Keith Dolo: It’s always my pleasure.
Jimmy Mengel: So, I've seen this craze happen a couple of times since I've been following the industry, but it continues to build. The stakes are larger. You've got Coca-Cola. You've got Pepsi coming out today. Now that you're you're starting to get into some of that, the big money, I think it's kind of a sea change for the industry.
Keith Dolo: Yeah, every kind of month I start thinking that it's going to plateau, especially as we came up to legalization here. I thought October 17th was going to be the big discussion point, but really it's been the multinationals investigating whether or not they want to enter into the space in some sort of capacity. That's really driven a lot of the discussion points away from just Canadian legalization, to be further investments and what companies will do from an M and A perspective, in that regard, so it's ever-changing. It's a constant liquid environment in the cannabis space, that's for sure.
Jimmy Mengel: I mean, an exciting time for where you're at, for sure. I guess, officially, do you wanna start there, because I think, last time I talked to you, you guys were just RTO-ing, and becoming Sproutly?
Keith Dolo: Yes, we had a very busy summer. We went out into the markets, publicly, July 10th, and we closed up the acquisition of Infusion Biosciences Canada, which was obviously in the works before going public, because we talked about in our road show and publicizing it. But officially, that happened August 1st, which was a big milestone for us. We closed up the acquisition of another subsequent technology probably around the last week in August.
Now, obviously, as you saw last week, we announced that we are having a bought deal financing being put together over the next couple of weeks, so that was somewhat our lead focus over the past three to four weeks, to get that shored up on the path that it was going to take.
Now that we have a 20 million bought deal financing announced, obviously, there's somewhat of a hush period, where we've got to be cognizant of what types of press releases and a direction the company goes publicly, till the deal is actually closed and the financing is complete, which we're shooting for October 18th as the close date on the deal.
But all in the meantime, really, between the acquisition of Infusion Biosciences in August and right up until today, the company's been working very hard on a number of different milestones out there, to continue to advance the business model from a scientific standpoint, but also right through to a business standpoint about how we're going to be attacking the market with our joint-venture partners or our branded products being distributed once legalization of beverages occurs later, in 2019, here, in Canada.
The company's been working pretty hard in the background to make sure that it continues on. We're excited, as we go into the fall now, to start being able to share with some of our shareholders in the street about what we've been kind of working on quietly over the past couple of months here. Lots more news to come out as soon as we get a couple of these milestones completed over the next kind of month here.
Jimmy Mengel: I think that's the way to do it. I did notice, in the press release, that you have a new patent.
Keith Dolo: We do. Preceding the Infusion acquisition, we were able to acquire another license agreement with a patent that allows us to be able to additionally infuse into our cannabis products water-soluble nutrients and minerals. Think of things like potassium, magnesium, zinc, calcium, that typically companies have a very difficult time infusing into water beverages or different functional beverages that taste well.
We were going down the path parallel to the Infusion acquisition, to be looking at the acquisition of this technology as well, which we locked up, which just gives us another tool in our tool-belt, essentially, to be able to create another level of products that have additional nutrients and vitamins in them, above and beyond just infusing cannabis into a standalone beverage that's out there. It gives us another tool in our tool-belt to be able to look at different types of beverages into the health and wellness space rather than just infusing existing products with a simple cannabinoid or simple water-soluble cannabis solution.
Jimmy Mengel: So you, I guess, ideally, you’d have a stable of functional beverages, cannabis and otherwise?
Keith Dolo: Correct. We have the option, now, to put out a functional beverage with just cannabis infused into it or a variation of that functional beverage with something that has potassium, magnesium, zinc, calcium, all also on your daily requirement list, to be infused into it, and that's technology that we acquired in the second licensing agreement with a company called MTI out of Minnesota.
They currently have products on the shelf in the alkaline water category, that are distributed through many different types of retail outlets in the US, so it's not a new technology but it's one of the top technologies for water-soluble nutrients and minerals that exists, currently, in the US, so we're quite fortunate to be able to bring that under our banner for the exact same jurisdiction that we licensed through the Infusion acquisition, which was Canada, Israel, Jamaica, Australia, and the entire European Union. We did a licensing agreement for that same technology.
Jimmy Mengel: Yeah, I was going to ask about the MTI stuff. It seems like the MTI stuff ... Is that kind of like a placeholder for you guys, just to get shelf space and work up the brand while, here, in the States, we catch up on some of the cannabis stuff?
Keith Dolo: No, we're not using it a placeholder. Are you thinking non-cannabis brands out there?
Jimmy Mengel: Yeah, I'm thinking legal CBD stuff that we could possibly offer. I'm trying to figure out this beverage market, because I know, in Canada, you're having some problems until next year. Here, we have different regulations. I'm trying to figure out what happens in between, where ... as a company and as a brand, you need to establish shelf space, you need to establish brands, but if you can't sell your main products, do you pull in these other products?
Keith Dolo: Yeah, so obviously the endplay for Sproutly is the different types of consumer products that we're going to be able to create through our Infuz2O or our bio natural oil. The first products you're going to see come to market are going to be products into the new year, when we get our sales license here in Canada, which will compete in the existing oil market. Our technology provides a bio natural oil as the second step of the process, which will be able to work under the Health Canada regulations, to be able to put out there in things such as sprays, capsules, and oil-based products.
There is a product that will come out to market, that we'll be able to achieve revenue on, but all in the meantime, I think the technology and the Infuz2O product that it creates, to be able to be infused into beverages, is kind of our standalone market differentiator, if you will.
In Canada, yes, it's not going to be legal until 2019, but creating this type of mainstream beverage, it takes months and months of formulation, shelf stability tests, testing and process and approval by Health Canada, so albeit legalization for product shelf space of those beverages isn't going to be till later, 2019, it certainly doesn't mean that we're not in the process of working on formulations about how to create those with both ourself and our joint-venture partners, so once legalization occurs, we can have products hitting the shelf space instantaneously.
I think, if we look to other jurisdictions, outside of Canada, such as the EU, which currently has hemp-based CBD drinks available in certain jurisdictions, or Jamaica, or Australia, we're going to be able to work on beverages much quicker in those jurisdictions, and you'll start to see us announce some kind of discussions regarding how we're going to tackle the beverage space, globally, which will probably happen much sooner than it will, obviously, here, in Canada, but we're still shooting for whenever the regulations approve beverages, here, in Canada.
Jimmy Mengel: How are you guys are rolling out the eventual legalization of cannabis beverages?
Keith Dolo: I think you'll see some partnerships or international expansion plans come to fruition over the next 30, 60, 90 days, let's say, where it will prove out international business model, where we can achieve beverage sales much faster than we'll be able to accomplish here, in Canada, but the Canadian spectrum, because it is so heavily regulated and Health Canada is dotting all their I's and crossing all their T's with whatever products they approve, there is a lot of concern around how beverages are going to be managed within that platform.
Are emulsions or nanoencapsulations even going to be allowed into that platform?
Because if you look at any mainstream beverage that's out there on the market, none of them use an emulsifier as an ingredient within those drinks, so it's really determining how Health Canada's going to play within the beverage space when it comes out, and it's allowing us and giving us enough time to start to ensure that we've got our joint-venture partners locked up and our products ready to go, so that we're not caught behind the eight ball when legalization occurs next year.
Jimmy Mengel: It seems like, based on some of the other companies I follow, your evaluation and some of your patents ... I know you can't talk about all of this, but it's an attractive buy-up possibility. That's basically why I'm looking so closely at you guys, because you seem to have everything going on. I talked to Doctor Sen as well, and it seems like you guys really have a different product than most of the other folks that are trying to do the beverage thing, but maybe almost reverse engineering it, and then they're trying to figure it out. It seems like you guys started from that point.
Keith Dolo: Yeah, well, we get the benefit of having Doctor Sen, who's got 12 years on water-soluble extraction research plus he's formulated a number of beverages within certain jurisdictions, globally, outside of Canada, already, in this space, so we're coming to the market with a little bit more knowledge base than some of the companies that are trying to get there through an existing emulsion or nanoencapsulation.
When you line the companies up, you line up existing products that are currently on the market, even in the US, every single one of them, at this point, right now, all from everything that I can see, uses either a nanoencapsulation or an emulsion technology, and those techs have been around for 40-plus years in the pharma world, and Doctor Sen and a number of other scientists that we've spoken to have used those in a number of different applications for a number of different pharma projects over numerous decades.
We are literally the only one that's coming with a new technology that is somewhat revolutionary, to be able to create a naturally water-soluble cannabis solution that allows us to immediately infuse a beverage, or an edible, or consumable, with a different type of standalone product, rather than trying to encapsulate something oil-based and suspend the particles in the waters so that your eyes can't see them.
But at the end of the day, they're all using an oil-based product as the starting material, so it's a bit of a different take to it, and certainly we're excited to bring it to market, and we're getting a lot of traction from people that are starting to understand the science behind it and are taking the time and attention to sit down with us and learn the theory and methodology that's being developed in the lab to get us to this point. Obviously, that's going to hold true, obviously, with our business model, moving forward as well.
Jimmy Mengel: Yeah, for beverages and all sorts of products, like you said, capsules or pretty much anything you ingest into your body.
Keith Dolo: The best way to take it into your body is a truly water-soluble form, and we are one of the only, or if the only, one, that we can determine, at this point, that's coming, with an actual truly water-soluble cannabis solution, not something that is just deemed to be water-soluble from the cannabis marketers out there in press releases, because anytime you use an oil, or an emulsion, or an encapsulation technology, it's never going to be soluble. If you look up the definition of water-soluble, it's something that dissolves evenly within water.
Oil particles never dissolve in water. It's the old oil and water. They do not mix and they never will mix.
Jimmy Mengel: Yeah, kind of the definition you learn in science class as a kid.
Keith Dolo: Yeah, there you go. I think the term water-soluble is used almost on a weekly basis, in terms of a press release of a company that's trying to create a beverage.
Jimmy Mengel: I keep seeing it a lot, but I say to myself "Well, if you have them both in there, it won't really work that way, will it?"
Keith Dolo: There are differences. If they say water-soluble and they use an oil, well, it's not. It's water-admissible. It's water-compatible, at best. I think the true realization, if you're able to pull their patent application, within the patent applications is where a company has to truly define their scientific method and actually detail it out in a very true manner.
Once you've identified something that's incorrect on your patent application, you risk it being actually thrown out, so when you pull these water-soluble technologies that are being publicized in the news and through press release, and you pull their application, it doesn't say water-soluble anywhere. It says water-compatible, water-admissible, and there's different terms used because an oil will never be water-soluble. It's the difference between true science and those who are trying to create press releases that will do their company better in the short-term.
In my opinion, there will be products that exist on the market. There are existing products, in the U.S., that use an oil, and they've carved out a niche for them, and there will be a niche market for those types of products, ongoing. We are just very confident that coming to market with a true soluble cannabis solution infused into a beverage with an onset of five minutes and an offset of 60 to 90 minutes will just allow us to stand apart from all the different competitors that are going to have shelf space right next to us, so that's the exciting part that we're starting to see through our discussions with our joint-venture partners.
Jimmy Mengel: I think that is the exciting part, which I've written about before for my readers. Speaking of my readers, one question we have got was about the OTC symbol. I haven't seen anything official on that. What's with the OTC symbol? Is that a relic of the last company? How is that working, and is that an appropriate way to invest in your business?
Keith Dolo: Yes, so our OTC listing was a gray market listing that was then upgraded to a pink sheet listing, not at our discretion. It was done through a broker dealer in the U.S. that had set it up for us, and so we went through, because we did not want to be viewed as just a gray market or a pink sheet listing, not sponsored by the company.
It has been officially upgraded to a company-sponsored OTC QB-board listing (OTCQB: SRUTF), backed by the company, and our financials, and FEC.
Jimmy Mengel: All right, that's crucial. That was one of the main things I've been getting questions about. That's great to hear.
Keith Dolo: Yeah, we didn't get publicized. We're going to put out a general corporate update, of which that's obviously one of them, but yeah, it has been upgraded to an official QB-board, so we have FCC reporting requirements and US Bank reporting standards, now, that we have to adhere to, so it is a legit ticker symbol now versus one that was essentially on then back burner before, through a pink market dealer.
Jimmy Mengel: The ticker, it's the same?
Keith Dolo: Yeah, it's the same: (OTCQB: SRUTF)
The other big thing to know is we literally put zero dollars into any U.S. promotion or any type of investor relations at this point, so as we move forward, after this kind of quiet period, when the financing gets closed out, the company will be looking to have kind of our name, and our brand, and our recognition known a little bit more, going into the fall months here, both in Canada and the US.
Up until this point, it's been a very quiet type of rollout of the company, and that's why you haven't seen a lot of press releases, you haven't seen a lot of pizazz, but we've been kind of hedging down, getting all the business items and milestones kind of checked off here on our point. Hopefully, you start to realize there's a little bit more publications coming out about us, and you ought to see more news for your readers and shareholders to follow, rather than just having to rely on your sources all the time too.
Jimmy Mengel: No, that's nice. I prefer to see things work out that way than a bunch of random press releases that don't mean anything.
Keith Dolo: Oh, I know. The problem with those is you've got to keep up with them. You've got to have one every week, ready to go, in your back pocket, and some of them are so insignificant that it shocks me that people pay to put that information out.
Jimmy Mengel: No, if you're going to swing, take a big swing. I appreciate the time, Keith.
Keith Dolo: Sounds good, Jimmy. Have a great day.
Jimmy Mengel: Take care.
You can learn more about Sproutly (CSE: SPR; OTC: SRUTF) on their website.
You can view their investor deck here.
* As anticipated, Sproutly just reached an agreement with a major beverage company. We're still buying the stock — this is only the beginning for them.
Here are all the details...
Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) have struck a joint venture deal to develop their patented cannabis beverages with Moosehead Breweries.
Moosehead is the oldest Canadian brewery, founded in 1867 and is still privately owned and operated by the Oland family.
They also make a damn fine beer...
Details are still coalescing, but there is no other way to say that this is a great achievement for an unknown company that you were the first to read about.
However, we haven't reaped the benefits yet.
I’ll let you read the entire announcement below...
SPROUTLY ANNOUNCES JOINT VENTURE WITH MOOSEHEAD BREWERIES TO LAUNCH CANNABIS-INFUSED BEVERAGES IN CANADANOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES
Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FSE: 38G) (“Sproutly” or the “Company”), and OCC Holdings Ltd., an affiliate of Moosehead Breweries Limited (“Moosehead”), are pleased to announce that they have entered into a definitive agreement (the “Joint Venture Agreement”) to form an exclusive joint venture (the “Joint Venture” or the “JV”) to develop, produce, and market non-alcoholic cannabis-infused beverages in Canada using Sproutly’s proprietary, naturally produced water soluble cannabinoids known as ‘Infuz2O’. Both companies will bring their respective strengths to the joint venture to develop a line of great tasting cannabis beverages featuring a rapid onset and offset effect unique to the category.
Joint Venture Highlights:
Partnership with the Oldest and Largest Independent Brewery in Canada
Over 152 years of brewing experience through six generations of family ownership
More than 140 million cans/bottles of beer sold annually throughout Canada, the United States and in 15 other countries around the world
Oland family’s proven ability in building, marketing and selling industry leading beers such as Moosehead Lager, Moosehead Radler, Alpine, and Hop City Barking Squirrel
Competitive Advantage Driven by Infuz2O
The JV beverages can deliver the cannabis effect as early as 5 minutes and last up to 90 minutes, providing an edible cannabis experience similar to traditional flower cannabis without the need to inhale smoke
Ability to address the industry challenges of overconsumption of oil-based edibles and beverages
Capability to produce a clear cannabis beverage that is much easier and faster to formulate than its competitors who will be using emulsifiers, encapsulation or chemical modification techniques
Ability to deliver functional beverages that address a “need state” by producing cannabis strain specific experiences
Natural Infuz2O process allows for a premium consumption experience and taste profile
JV Well Positioned to Enter Cannabis Beverages Upon Legalization
Moosehead’s beverage experience and R&D formulation capabilities will ensure that the cannabis beverages produced will be premium in quality and have a great taste profile. Moosehead’s established operational infrastructure will allow the Joint Venture to fast track its go-to-market strategy.
Sproutly’s cultivation facility and processing license will advance the formulation work that has been completed to date as well as production scale up.
Alignment of Interests
The Joint Venture is structured as a 50/50 equity ownership. Matthew Oland, one of Moosehead’s senior executives and Oland Family member, to lead the Joint Venture as Chief Executive Officer.
Moosehead to provide infrastructure support such as R&D, operations, procurement, finance, and distribution
Sproutly to provide proprietary custom compositions using Infuz2O for cannabis beverages in Canada
JV will have exclusive rights to utilize Infuz2O for cannabis beverages for a period of 5 years with a possible 2-year extension
Ability for the JV to enter the European market once recreational cannabis use is legalized
“With the anticipated legalization of edibles in Canada later this year, Moosehead has made the strategic decision to enter the cannabis beverage market. As one of the oldest brands in Canada and a leader in the beer category, we believe we are uniquely positioned to be a leader in the cannabis beverage category.” said Andrew Oland, Chief Executive Officer of Moosehead.
“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; a beverage that: 1) actually tastes good; and 2) provides an immediate and controllable cannabis experience lasting up to 90 minutes.”
“Moosehead is a truly iconic brand and we are very excited to partner with a company that possesses such deep-rooted Canadian heritage and over 152 years of history in the beer industry. Partnering with a company of this caliber is a strong validation of APP Technology and Infuz20.” commented Keith Dolo, Chief Executive Officer and Director of Sproutly.
“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. 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”, added Dolo.
“After careful analysis of the cannabis industry and the cannabis beverage opportunity in Canada, we believe that Moosehead and Sproutly together are well positioned to become a significant player in the category.” said Matthew Oland, incoming Chief Executive Officer of the Joint Venture.
“The JV’s ability to leverage Moosehead’s rich history of building adult-beverage brands, and its established R&D and operational infrastructure, will enable the JV to bring great tasting cannabis beverages to Canadian consumers. The Infuz20 technology delivers a natural cannabis beverage experience, with an onset and offset time similar to traditional flower cannabis, without the need for chemical modification. We believe this will be a game changer for the sector.”
Terms of the Joint Venture
The Joint Venture will be structured as a standalone company with its own board of directors and management team. Sproutly and Moosehead will each hold a 50% interest in the JV and have the right to nominate 3 directors. Moosehead shall appoint the Chief Executive Officer and Sproutly shall appoint the Chairperson of the board of directors of the JV.
Sproutly will provide Infuz20 exclusively to the Joint Venture in Canada for the purpose of producing cannabis beverages (excluding hemp) for a period of 5 years (the “Exclusivity Period”), such Exclusivity Period being subject to a potential extension based on the Joint Venture reaching certain revenue targets.
The formation of the Joint Venture is subject to the satisfaction of certain conditions, including the execution and delivery of various transaction agreements, governance documents and supply agreements. The parties expect to form the Joint Venture on or before May 31, 2019.
So there is no confusion.....I started following Cannabis stocks heavily in Feb of this year. Before that I was just invested in Biotech, Cyber security, Cloud software, telemedicine, retail, gene sequencing, energy, etc. In a two week period I researched about 30 cannabis companies...from ACB to SRUTF, from CWBHF to GTBIF. I looked at extractors, MSO's, growers, pure CBD plays, REITs etc. I use that time and space (roughly beginning of the year) and then look again as the cannabis market has been crushed. In that time frame for example, on Feb 22 SRUTF was selling for .30 cents. I then look at how those same stocks have held up at the height of the cannabis dismantling (last week, this week) and compare to see what companies have held up the best since I first started doing my dd. That is about an 8 month time frame. In that time SRUTF has gone from .30 to .29 today. Those other stocks I listed a couple posts back, I did the same math on. I then checked with my ETrade acct. to verify. This is part of my dd and because it is not what you are looking for, you feel a need to give me shit and call me a pumper? Come on man you are better than that. So to repeat myself....all those stock prices I listed are from two weeks in Feb (most of them, I think 1-2 are early March). So yes SRUTF has held up unbelievably well. I also research the board of Directors of companies, executive management, analysis research, charts, all kinds of dd. I also use my intuition. I try and never start shit with other posters and I try and be as respectful as I can. Like I said in an earlier post, I am a type A personality so I have my moments but those who know me well would tell you I am open minded and respectful to others. They will also tell you I love to mix it up when I have too. (posts, not fists, although lol) Question for you: you know the technology behind SRUTF,. You know the JV is happening. You are aware of the management and of the researchers behind the technology. Maybe you can explain to me why you are so down on SRUTF or why you get this kick out of seeing the PPS go down. You almost relish in it? What gives bro?
SUP updown? I do not own SRUTF yet so I am not pumping it bro I am simply lending my opinion, for what its worth. (Not much, lol.) Look man, I have a technology background in Biotech. I really like the technology that SRUTF provides. Being able to take exact dosages of edibles and beverages is huge imho. The effect last up to 90 minutes. The problems with edibles has always been dosage and what you get, how long to react, how long will it last etc. As you read in my last post, a lot of people have lost money in the cannabis market, no? SRUTF has gone down a lot less vs most cannabis companies I follow and do dd on. Companies like IIPR and CWBHF are up for the year but the vast majority are way way down. So to repeat myself....I am not a pumper. I share my dd or reasoning for investing, or thinking of investing, in certain companies. I have not re-entreed SRUTF yet. I am waiting for volume to pick up and pps to increase over a period of time. I have no agenda here. Now what I posted was since early Feb when I first started following SRUTF, it is down from that day less than 9%. I see math is not your forte bro. I started following SRUTF when it was .30. 0n Feb 22nd. The other stocks Listed I also starting following about the same time (within 1-2 weeks of each other) So from .30, when I started following SRUTF, until today, it is down a penny. KSHB on 2/12 was over $6.00 and today its $1.67, down over 72%. Seriously, you are such a negative, in your face, type of poster bro. Be nice and respectful. Before you post, read what you write and say to yourself..."is this post attempting to help others or is it just useless bullshit". Sometimes you write really intelligent posts and other times you seem just mean spirited. Now being an athlete, a type A personality, who works out 6 days a week to relieve everyday stress (and to keep in top shape) I can be pretty damn aggressive myself. I am blessed that my wife was a three sport athlete at ASU and she puts me in my place often so she has mellowed me out, but I have my days still. On those days...I am glad a lot of posters are behind key boards. Anyway man, try and lighten up bro on your posts. Because someone owns a stock, or disagrees with you, is no reason to be a dick, man. I actually think you have a lot to offer. You seem to take things a bit too personal? I do not want a war with you I do not have the time. Now if you want to do a cross fit workout, box, talk shit about my Niners destroying the Browns, I am game. Otherwise man, chill out my brother, it's all good.
Volume is low. Until the volume gets up we will sit here. It's just a matter of time before this takes off again. Its held up rather well considering the overall market. The one thing that separates SRUTF from most smaller cap Cannabis companies is great technology and stellar management.
To give you an idea how well SRUTF has held up since early Feb 2019 take a look at some other stocks that are down over 35% or more:
ACRGF MMNFF VFF ORHOF CRON HRVSF APHA CVSI PLPRF ITHUF OGI TGODF THCT CTST MRMD TGIFF EMHTF TRLFF NXGWF KSHB LHSIF ALEAF WLDCF DXBRF TRTC LBUY SPRWF KHRNF ELLXF NBEV TLRY, to name a few. Meanwhile SRUTF is down 8. 68% during that time period. It has held up remarkably well since early Feb. This is a long term hold, not a swing trading or day trading stock. There have not been many wild swings with SRUTF vs the other stocks mentioned above. Technology and management are so critical and SRUTF has both in spades.
Yes, investors place has had TILT in their portfolio for awhile. That price point has been on their portfolio info for months. Until they find a CEO who can lead, write, and speak with conviction, I do not see TILT moving north.
Nice find Clemdane! I bought this stock as spec play (SVVTF) and bought sold several times last selling at .66. The management is suspect to say least but I just bought back in today thinking .25 was bottom via charting. That worked well, lol. I cannot understand how a company with so much potential has fallen this far?My take is....little, to no investor, or analysis, interest. Add to that, terrible management, low company morale (word mouth from buddy who writes a well followed investor publication, who has friend who works at TILT...disgruntled employees which I do not put much stock in) I do not like their management team, they need a new CEO sooner than later. At .25 I really feel I cannot go wrong as this company truly is making strides. The management has done such poor job of communicating with investors so very few understand the various companies functions and how they mesh together. Just my personal thoughts. Thanks again for sharing!
No, Yahoo is about same. This company, or companies, are not heavily followed by retail investors it seems. Price would seem to verify this. I did not think it would break below resistance at .25 but now it looks like it could see sub 20s. This is either going to be the best find, or the absolute worst investment. It seems the later has played true for the better part of 9 months and counting.
Good articles man, thanks for the updates. Agreed 100%, I believe the testing niche by far, has at this point in time, the most growth potential out of any other cannabis sector. Hell, it might have most growth potential out of any sector in the market. It all comes down to a companies skill set of management competence, vision, sales savvy, organization, and leadership. We will be hearing much more press regarding cannabis testing going forward. Those companies recognizing, and utilizing, this press; via marketing, investor relations, and analyst coverage, will grow by leaps and bounds.
I have personally witnessed medical Mj kill tumors and save lives. Educate yourself bro. Look up Rick Simpson Oil. Our good friend Lori had stage 3 Ovarian cancer and given 18 months to live. Her tumors were too large to remove. 6 months before, our lab got breast cancer, stage 4, in a coma, laying in her own urine, unresponsive (this happened over period of two weeks). Before she went into the coma we could visibly see the wound (the size of an oval potato. We gave Roxy oral application of R ick Simpson, by rubbing on her gingiva and also inside the tumor as it had broken open. We had researched Rick Simpson oil, had nothing to lose, and started treating her immediately. Regardless, she went into a coma with 105 degree temp. My vet was appalled we were trying to save her in such a grave state. Long story short, she was given antibiotics to get fever down, and we fed her by turkey baster, organic food and heavy doses of organic olive oil along with the Rick Simpson Oil. 4 weeks later she was up chasing squirrels, chasing balls etc. She lived another year but passed from oral cancer, In hindsight we should have continued the treatment after she went into remission. On to our friend Lori.....We talked Lori, had never smoked pot was not a big fan), but we talked her into taking the oil for 6 weeks. It is extremely potent (high THC/CBD). Remember the Chemo was not working on shrinking the tumors. When she went back to her visit she was immediately asked by her doctor what she bad been taking or doing? She replied nothing being unsure to tell them about the oil. They responded then it must be a miracle because your tumors have gotten small enough to remove. She has been in remission for over 4 years!
I hate to burst your bubble bro but medical pot DOES WORK, is real, and the MJ sector is going to be HUGE for investments, CBD is real, medical cannabis is real. Welcome to the 21st century. My background is Biotechnology. I just retired last year from being President of a Ca. biotech company. I have witnessed medical MJ work and save lives. I do my dd just like I did with SRUTF. I invest on dd not emotion. Refer madness was not real bro. Please educate yourself because making statements like you made regarding the state of cannabis just makes you look, well, uniformed (to be nice) The vaping issue? ROFLMAO. People have been vaping for years. Now all of a sudden, there are deaths etc. Right. Out of nowhere? The black market with oil etc is the black market. Trust me dude the vape scare is nothing more than scare tactics. Yes people have died vaping products bought from the black market or unregulated products were sold. Sorry to inform you the legal Cannabis market, CBD, OIL, is real and its here to stay. I take it you are either a senior citizen, live in the bible belt, or are just a uniformed investor? I mean absolutely not disrespect for living in the bible belt, or senior citizens, I am just trying to see how someone could be so uniformed in the cannabis market. You seem to invest with emotion.
I have seen CBD and Medical MJ work in my life. I have seen Rick Simpson Oil save lives, My advice to you bro is to not invest in ANY cannabis products. Stay away from the cannabis boards because you are just embarrassing yourself. I am not trying to be a dick I am actually trying to help you. This is not personal. Good luck man.
from Mathew Carr, profit trends publications:
The best performers so far are MediPharm Labs (OTC: MEDIF), Innovative Industrial Properties and GrowGeneration. These three are up more than 95% each so far in 2019, despite significant pullbacks from their year-to-date highs.
They’ve weathered the storm and are still in the green.
The three underperformers are OrganiGram Holdings (Nasdaq: OGI), CV Sciences and MariMed (OTC: MRMD).
It’s worth noting that MediPharm and OrganiGram were the only two Canadian companies in the top 10 for adjusted operating income. This shows that American CBD makers and MSOs have strong markets to tap into – and likely some very serious upside.
I never double down on a stock unless I have done dd and know my investment. Penny stocks u cannot lump all together. Technically Nokia is a penny stock, sitting under $5, for example. Most my portfolio is 5G AI IOT retail, and Biotech, including gene sequencing, telemedicine etc. and the cannabis sector. Why do u pick this stock, this board, to give so much shit too? Just curious.
I could not agree more. It's all just too convenient to have happened now, this fast. All of a sudden there are dozens upon dozens of vaping sickness, death...but NEVER before this, and people have been vaping for how long? Pot has been legal (medical and recreational) for how long? Lets just take the West coast...Oregon, Washington, Ca. and lets' add in Colorado for good measure. Since legalization in these states, before the past what, month, did we hear of one case of vaping sickness? Then, out of nowhere we have all these cases, one after another, throughout the US? Does not take a genius to figure out this is bullshit. I am not saying these people are not sick. My question is who is responsible? The black market vapes have been around for years. I hear something.
It's not if, it's when, does SRUTF start the climb back up to the levels earlier in the year, and far surpassing those numbers. Its a catch 22 because if you wait and news hits, this will be a rocket ship. On the other hand if we are slow on news the pps will slip sideways or less. This is a long term hold for sure so slowly accumulate buying on dips, is pretty much my plan. The management team is stellar, the sector is going to explode, and the niche (beverage/edibles) will be biggest growth in the sector. It would not surprise me to see a company Like TGDOF partner up with SRUTF, with organic flower combined with water soluble technology, or a company like DTEA utilizing SRUTF technology. I forgot what poster here said that the most positive sign was having SRUTF holding so strong as the rest of the cannabis industry got taken to the shed. I know Keith Dolo has often said it is a positive sign for the stock to stay stable, which it has. This is still a spec play at these levels but one of the safer and most upside, of any spec play I have found in this sector.
(I do not mean a day trading or swing trading spec play) I am just waiting for volume to pick up. Have a great weekend, lets see what the next couple of weeks bring.
I think the same thing man. The companies we see today will not be the same companies in the next 12-24 months. Big Pharma, Tobacco, and Growers, needing to inherit market share in the US, will most likely buy out current MSOs and extractors. I could not agree more. I just picked really my dd of the top companies in each sector because I am also interested in some 5G AI IOT companies, along with gene sequencing, tele medicine and biotech. These are NOT companies I flip, these are long term holds, but I will be taking profits on the way up, and cost averaging down when appropriate. I will be purchasing another CBD company and 2 more MSO's, once I find a good entrance point. I do like any extractor close to MEDIF. The current investors deck is really impressive.
Really happy to have added shares today.
Completely agree FUNMAN. I am only buying who I think are the leaders in each sector:
MEDIF (extractors) GTBIF (MSO's) CWBHF (CBD/HEMP) IIPR (REIT) DTEA (beverage edibles) TGODF (growers ORGANIC) If you do your DD, trust your dd and buy high quality companies for the long term you are golden. There are so many good companies but I am trying to go with who I consider top dogs in each niche. GLTA
Agree 100%, certainly no rush. I need see 3-5 days of increased volume, plus pps closing at end day, higher for consecutive days.
Now there are extractors that are testing CBD/HEMP (VGWCF) along with large private labs such as Steep Hill, Cannalysis lab, etc. It is all going to come down to management, and their skill set to grow the business through acquisitions, new clients, etc . If and when Steep Hill goes public, they will become even more of the 800 ob gorilla in this sector. There is so much business to be had and I cannot think of two better niche's in the entire cannabis industry as Testing labs, and cannabis/ hemp extractors. The sky really is the limit, now can EVIO management finally take two steps forward instead of one step up two steps back? Will EVIO start to produce timely ERs and reporting? I strongly believe it's almost impossible to fail in this sector....the only way really to fail is from incompetent management or legal issues. None of us, I do not think, personally know EVIO management or the day to day running of the company. It's all just speculation at this point. Let the cards fall where they may. To further judge management either positive or negative is just wasted time, usually with an agenda. Lets step back and let EVIO management hopefully work some magic. I learned first hand from running a biotech company, just how clueless the public is to the day to day running of a company. It's like politics; it seems like no matter what, 50% of the people dislike you. I try to stay true to the thought: ' If I could not personally do a better job, then I should not criticize those in power'. I do think I would have been far more transparent than what I have seen out of EVIO management and for sure I would have tried to provide better communication with my investors. That being said I have no idea what goes on day to day, month to month so I will try and keep my mouth shut on this topic. Testing is going to be HUGE and I think we cannot lose investing in this niche. We just need to research and find the best opportunities, and grab them. EVIO does have first mover advantage as being the only publicly traded lab I am aware of. Have they done enough to play this to their advantage going forward? Time will tell. GLTA
BO can, and do, happen quite often. The Cannabis market you see today will not be the market you see going forward the next 3-5 years. Large tobacco, Pharma, large growers (CGC ACB TLRY etc) will buy up smaller companies for market penetration into markets they currently are not in, or to own technology rights, and dozens of other reasons. In fact, I recently read in a publication from the Outsiders, Crows Nest, with Jimmy Mengel, (Angel Pub) that SRUTF was in fact, in their opinion, a buy out candidate. My recent post said sometime in 2020-2021. That is just my gut and my belief as to where the cannabis market is heading. The names of top growers and MSO's today will be much different 3-5 years from now, imho. WE agree to disagree.
More great PR! Thanks FUNMAN for all the info.
Yes, a speculative stock like this frees me of the boredom. lol. I use $ I can afford to lose on spec stocks and never have more than 2 in my portfolio. I feel a buyout is going to happen sooner than later, and it would not surprise me to see happen before years end, but feel it will in 2020-2021. I have no idea its all just a wild guess. I do feel, as you do, that SRUTF has great potential.
Thats a tough call. I think SRUTF gets bought out sometime in 2020. It certainly will be before 3-5 years imho. Until we see the hype created by Cannabis 2.0 its just impossible to even guess. I would guess SRUTF is back at .80 from here if: we get some news re the new legislation in Canada, an update from Dolo directly, re legislation, and new partnerships announced. Remember you have a ton of companies hyping legislation and....these companies have been just slaughtered the past 6 months, many have institutional buyers as well. You also have companies like DTEA that is now in beverage and soon edibles. I see SRUTF still being a spec play with great upside but very risky vs the extractors, the CBD companies, the growers, etc. Again, I have no idea when I will enter back in but I will need to see high volume and the pps rising for 3-5 days to say...... .40-.50. I see SRUTF more of a buy and hold and look at it 6 months from now or a year. That being said, its such a spec play you will get day traders and swing traders etc so its just too hard to predict. Now take a TLLTF the past 2-3 days. They are up almost 50% or more on: relevant news! Then you see volume 3-5X normal volume. One more day and see where it settles but I think its going much higher, and soon. So we need NEWS. We need more from the ad agency and we need an update from the CEO. I do know people who bought SRUTF back in early 2019 and sold, will come back and look this month at SRUTF. I just think there are too many other stocks that have been beaten down and making comebacks now, right before 2.0 sets in. Savvy investors will buy into the date and sell on news soon after the date I imagine, only to buy back in as pps drops again. Its all speculation bro I have no idea. Its all just a guess. I will buy shares and hold long term not worrying about the daily ups and downs. What about you? What are your thoughts? I know the one thing that drove me to SRUTF was the patent pending technology re water solubility. To be able to control dosage much more exact was huge for me. It still is huge for me.
For what its worth is is healthy and helpful to see both sides from people here who post here, both bears and bulls. UpDownTrader is a smart guy and his points should be taken in as well. It's always smart to play devils advocate. It's the pumpers and shorts on boards who have zero substance, get emotional, and waste everyones time. I do not see that here on this board recently. GLTA
Thanks Dude61, glad to be here.
Agreed we are very early in the game which is why I sold back in late April. I figured the stock would bottom out, and there were other investments I needed to make.
Now that Cannabis 2.0 is close (but it will not be the great mover of stock price as I have heard that a lot of products may be delayed until late Q1) I am looking hard at different sectors.
My favorite stocks re Cannabis 2.0 are of course SRUTF but I also really like DTEA TGODF GTBIF and of course the CBD/HEMP pure plays such as CWBHF and CVSI, and extractors such as MEDIF NEPT.
I buy stocks based on management and niche. SRUTF has got everything I want in a company, long term, just waiting for more volume and for the stock to track hire for 2-3 days. If stocks fall I try and wait until there is a bottom via charting, but that is not an exact science to say the least .For me the safest play is to see higher than normal volume and the price increase, over a 3-5 day period (like CVSI, GTBIF, CWBHF and MEDIF are starting to show this week)
Right now my eye is on Extractors, CBD pure plays, and of course the beverage/edible players. The market is too AADHD for long term holds for me other than some cannabis stocks that have fallen from grace. The 5G and AI sectors have gotten so much hype and are all over the map. Telemedicine and gene therapy also have been all over the map. Right now the Cannabis sector seems to cycling back into play. I am also big on investing in Biotech but talk about risky.
SRUTF is very early in the game and I expect a BO sooner than later. Their technology is what I have been waiting for in beverage/edibles. Let's see what next week brings us.
If I were a betting man , I would bet huge on SRUTF and DTEA in the beverage/edibles market in Canada.
I meant the stock has held up, not the stock has been up, the past 6 months. My typo.
Hey UpDown. You seem like an intelligent guy. Seriously. However, you always start at patent pending and yes, they do have patent pending on water solubles. The point with water solubles is you get much more accurate dosage vs where we are today where you basically have little to no clue. Fat soluble is why I do not touch edibles and would much rather vape (PAX 3 uses flower) flower vs eating an edible for the very reasons you stated re fat solubles. Like I stated in my earlier post, Managment is KEY for me when investing in a company. Keith Dolo I really respect and like. He hired Ogilvy as their marketing firm, they just happen to be the most famous advertising agency in the world. This is huge in creating branding. Add to that, the Chairman and CEO of Bev marketing Corp, Mike Bellas, to the mix, a top 3 marketing company on a global scale bro. He sits on the board. Add to that Dr Sen and his brilliance. Again I do my dd based on management, the board, etc. Lastly, SRUTF has held steady during the absolute demolition of cannabis stocks across the board. It was at .30, jumped to .85 and then up during the last 6 months. Again, I cannot find one argument from you as to why do NOT re-invest in SRUTF. Did you consider that they may be a great buyout candidate? This stock can climb very fast as you have witnessed. They are the real deal and have great marketing, management, and vision. You seem far too intelligent to be so negative on SRUTF for really no apparent reason.
To each their own.
Why do you find STUTF to be fake, or as you put it, spurious? They have a unique, patented, technology that makes dosage much more exact. It just seems you have a personal vendetta? If you bought the stock, made money when you sold, why the negative posts on SRUTF? I like the entire management team especially Constantine Constandis, who is huge player and global executive in wine and spirits industry in Canada, US, Europe and Asia. Bryan Semkuley is a highly recognized executive who came over from InBev (Budweiser). and Melise Panetta who comes from Pepsico. The first thing I research in a company is their management team. These additions are key. Infuzz20 is what finally sold me. The management team are all top beverage industry execs bro. I trust my DD but have been away from following SRUTF since about late April, early May. So please, I would like to know why you are so negative on SRUTF. It seems like you made money trading the stock. The management team is top notch and trust me I know how do dd management as I have been an executive in the BIotech industry for years. My thinking is: I have become ignorant on investing the past 6 months and forgot how to do DD on a company or you have some vendetta for some reason against SRUTF?
Sorry for the confusion. Yes I got out at just under .80. I am waiting to see what SRUTF does here in the next week before entering. The beverage companies along with SRUTF I think all rise with Cannabis 2.0 but maybe not in October as rumor has it a lot of products geared toward Cannabis 2.0 could be delayed well into Q1. NBEV DTEA SRUTF I think are all good plays. Did you buy at around .32 and out around .85? Angel Publications 'the Crows Nest' was instrumental at helping drive the stock with promoting SRUTF in their subscription based newsletter back when it jumped. It was a really well written article in a publication of theirs. No, these guys do NOT get paid to pump stocks. This week they reiterated their stance on SRUTF again so I expect more volume and interest as we head into Oct 17.
I too have been known to talk out of my ass lol. Seems great minds do talk out of their asses once in awhile :)
I guess I need to work on my posts. I am actually a published author in the Biotech field believe it or not. I think I am a bit rusty since retiring late last year. I appreciate the honesty. Check out DTEA I think you will like what you research.
Connor Smith.....Barrons
Thanks FUNMAN. Here is another great article regarding GTBIF. I really like everything about this company, from the high end stores, to the stellar management team, and everything in-between.
Green Thumb Industries (ticker: GTBIF) won an Outperform rating with a price target of $18.50. "GTI is our highest conviction Outperform among all the U.S. MSOs now under our coverage," the analysts wrote.
"While several of GTI's peers have been keenly focused on rapidly expanding their retail footprints to build dominant retail brands, GTI has taken a slower, but we think more thoughtful approach, by balancing revenue mix between wholesale and retail," they said.
The analysts also cited the company's brand portfolio, presence in high-growth markets, and strong management team.
The company reported adjusted operated earnings before interest, taxes, depreciation, and amortization of $4.7 million in the first half of 2019. The profit amounts to 6.4% of sales. "While many peers discuss the margin benefits associated with the effects of scaling operations, GTI is one of the few MSOs on track to post near-term results that support such assertions," the report said.
All really good points ArbitrageAlex. From vast experience as a business executive, it takes prospecting, salesmanship, and great communication skills, to land large contracts. It also takes professional customer service, and lead follow up etc. Since following EVIO I have not once seen any communication from EVIO management to the investors? NDAs are one thing, but communication to the investors and to where the company is headed in 2020, plans they can share, etc. is not a hard concept to grasp. I do not know the EVIO management team so I cannot make any assumptions as to their skill level. I am just hoping they have the skill set to forge forward. Carter is right, this sector, this niche, and all the vaping issues, CBD acceptance, pro athletes getting involved, is huge. The question is does EVIO management have the people on board to drive this company towards a NASDAQ listing, and on the road to profitability? Here are two articles regarding cannabis investing etc. It pretty much says what ARbitrageAlex posted in regards to finances, management etc. Only the strong will survive. WIll that be EVIO. We all hope so but hope is not a plan of action and that is exactly what EVIO needs; a plan of action.
THE PAST IS THE PAST, TIME TO MOVE ON
Owning a cannabis stock starved for cash today is like playing Russian roulette, except in this case all but one chamber is loaded.
Cannabis investors are likely suffering from regret bias in 2019.
Regret bias is when you sit on losing a position instead of selling at a loss and putting the money into a better company with more potential upside and less risk.
Some cannabis stocks just won’t recover from this downturn and the sooner investors can move on the better their future returns will be.
Pick stocks as if the cash you have left is brand new and your cannabis journey is just beginning.
The days of buying weak cannabis stocks for big gains are truly and completely gone. Owning a cannabis stock starved for cash today is like playing Russian roulette, except in this case all but one chamber is loaded.
The risk of blowing away your portfolio far outweighs the outside chance you make some money.
Investing with a margin of safety is the only way to play cannabis stocks as the market works through a period of capital scarcity and investor panic.
Legal cannabis remains a rapid growth, multi-billion dollar opportunity so investors should not lose hope.
The night always looks darkest before the dawn.
Here is another one:
https://investmentu.com/top-10-pot-stocks-adjusted-operating-income/
What? I did sell and have not re-entered but will shortly. Bro before you make comments actually get a clue. You have no idea what I’m invested in or why. You have no idea about my background as past President of biotech company. You talk out your ass. Go away.
To the EVIO board from my friend 'TheHumanChessMachine': He is under strict NDA and cannot post at this time. He wanted you to know he may come back to the EVIO board, and post soon.
He misses you all. :)
Nosnibor, my thoughts exactly! I keep tracking my top stocks on ETRADE and a few weeks back I looked at what I bought SRUTF for (.3099 back on Feb 22.)I was amazed it had held up so well. I cannot wait to get back in tomorrow. Cannot believe its only down 6.84% from where I bought it. I got into SRUTF from dd I did and a great article from Angel Publications that included an interview with CEO. Lets see what the next month brings!
I think it should start seeing traction like right before this same group put out email last time, 2-3 weeks before molson news.
Here is an article from a very well respected Investors site re SRUTF. I owned SRUTF before the Molson Beer news and sold when the stock actually went down a couple days later, but still made a great return. Back in tomorrow. Expect some buying pressure starting tomorrow I would imagine. I waited to get back in and now is the time. The article below was sent out to all the paid subscribers.
Sproutly has been a casualty – like so many others – in the bleeding of the summer pot stocks. However, they have plenty to be excited about.
Sproutly’s core mission is to become the leading supplier to the cannabis beverage and edibles market.
They are in a good position, and have already started expanding. They’ve just announced the an expansion for their new manufacturing facility.
Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FSE: 38G) (“Sproutly” or the “Company”) is pleased to announce an expansion of its operations with a new manufacturing facility in close proximity to the Toronto Herbal Remedies Inc. (“THR”) (the Company’s wholly-owned licensed cannabis producer) production facility in Scarborough, Ontario. The additional property allows the Company to continue to centralize operations in the Greater Toronto Area, as well as providing manufacturing capabilities for it’s proprietary reagents, a key input for the APP Technology cannabinoid recovery process.
24
The
CROW’S NEST
September 2019
As Sproutly continues to explore other global markets for expansion, the need to produce it’s proprietary reagents at one central location and under EU GMP guidelines will be critical to ensuring consistency and quality, while at the same time reducing manufacturing costs. The new facility will also ensure that all space at THR is allocated to cannabis production and finished goods manufacturing.
The additional facility will not need to be licensed by Health Canada as no cannabis or cannabis products will be present on site.
Keith Dolo, Chief Executive Officer, Sproutly Canada commented, “This expansion is being designed and constructed to be compliant with European Union GMP specifications, which will enable Sproutly to manufacture proprietary reagents for use not only in Canada, but also for distribution into other global markets.”
They have also signed Constantine Constandis to the Board of Directors. He’s a beverage sales expert and has worked with big players like Pernod Ricard SA (RI:EN Paris) and as former CEO of Corby Spirit and Wine Ltd (TSX: CSW.A, CSW.B).
“We are very pleased with the addition of Constantine Constandis to Sproutly’s Board of Directors,” said Keith Dolo.
“Constantine has been a valued contributor to Sproutly since joining our Advisory Board last year, and this was the next logical step as we looked to expand our Board. His track record in brand building, operations, sales and marketing in the highly-regulated spirits industry will prove to be extremely valuable to Sproutly as it continues to develop into a leading cannabis beverage company”.
“Sproutly has a demonstrated competitive advantage with their licensed APP technology, and it’s supported by a competent and dedicated leadership team. That makes it very exciting for me, in a dynamic industry with big potential across multiple consumer offerings,” said Mr. Constandis.
Sproutly will find plenty of buyers for its water soluble patents. Once beverages can actually start being sold, they should do quite well.
We’re still buying Sproutly (CSE: SPR) (OTCQB: SRUTF) under C$0.50 and $0.40 respectively.
I swore to myself I would not post here anymore on the EVIO board, but thought I would weigh in on why I think the stock has risen in some part, over the past two days. This article was emailed yesterday afternoon. These guys have a lot of shares invested between them, and their subscribers.
Last time I posted here I was trying to show the board other stock boards who not only shared valued opinions but other stocks inner twined with the cannabis sector as a whole. I was giving my two cents to better the board but I got blasted by somebody cannot remember who, and decided I have more important things in my life to do besides having to explain myself to a stock board. Against my better judgement, I decided to share this email. I know from the past that most every time these guys sent out an update on EVIO the stock moved higher. At the same time, they also pulled out some months ago and let their viewers know, and soon after the stock plunged to the .20s. I am not saying this is the reason why either occurred, but it might play a small part. Anyway here it the email. Take it for whats it's worth.
One last thought. As a past executive in Biotech, management is CRITICAL to the success of a company. From my experience managing people, and managing communications with not only my employees, but the public, I find EVIIO management to be very underwhelming to say the least. However that being said, I am not at EVIO, I do not know what goes on day to day, month to month and so its only my opinion re EVIO management based on my dd. I almost never invest in any company with what I consider to be bad management. That being said, none of us really know the day to day operations within the company so really our opinions are like rear ends, everyone has one. I do not know the management at EVIO. It is wrong for me therefore to criticize them personally. I just cannot fathom being so late with critical paperwork that is so key for investors who invest in EVIO. I can state many other reasons as to why I think EVIO management has been less than transparent but again, what do I know? Anyway this is a good read. Enjoy.
Written Sep. 30, 2019
EVIO Investor Relations Makes a Comeback
Over the past few years, we’ve had to rely directly on SEC filings for updates on our cannabis testing investment, EVIO, Inc.
And let me tell you, while I don’t mind reading SEC filings, it’s not something I look forward to. Digging through earnings reports and reading management discussion and analysis isn’t as fun as it sounds.
And while it was getting its accounting department in order, the company was responding to all investor questions through comments on SEC documents. Let me tell you, that added a lot of new filings to the pile.
But last week, the company made my life a lot easier and added some much-needed value for shareholders. It released an update on financials, operations, and future plans. And it did it through a press release.
Investor relations is back, baby! And not only does that make my job easier, but it also makes the company more visible to other investors.
So let’s talk a little about the updates today. And I’ll also tell you why they make me even more bullish on our long-term profit potential.
Show Me the Money
First off, the newly revitalized investor relations department gave us an update on the financial reports we’ve been patiently waiting for.
The update pretty much said the same thing I’ve been hearing from my contact and relating back to you.
Earlier this year, the company severed its relationship with its former auditor. The company had grown too fast for that small company to handle audits in a reasonable amount of time.
The new auditor has been working closely with executives and board members to get everything in order and submitted to the SEC. We got the missing 2018 annual report last month. And EVIO says the quarterly reports for 2019 should be ready to submit soon as well.
I’m happy the company finally got its audits in order. But what’s more exciting about this announcement is the details about the new auditor.
The company, BF Borgers (BFB), is a U.S.-based accounting firm. And it’s got extensive experience working with cannabis and CBD-focused companies here in the States. Plus, its background is working with U.S cannabis companies that trade over the counter.
That means we just got another expert on our team. And it's one that specializes in helping small firms like EVIO as they grow from OTC listings to major exchanges.
That’s a value-add for shareholders.
Future Fund Raising
Another worry the company addressed in the update revolved around fund raising and future share dilution. And that was definitely something more than a few of you asked about after 2018 earnings showed a decent increase in share count.
The company had been executing a growth-at-all-costs type of strategy. It started off with a couple of partially accredited labs in one state. And it ended up with about a dozen spanning the most profitable legal cannabis markets in the U.S. and Canada.
That kind of growth was fueled by loans to the company and additional shares issued from the treasury. But every loan demands interest payments. And every new share dilutes existing ones.
As 2018 drew to a close, market conditions just weren’t good for raising more money that way. So the company decided a shift in strategy was in order. Instead of focusing on further rapid expansion, EVIO is working on squeezing every last cent out of its current labs.
The company has already started undertaking initiatives to optimize operations and boost recurring revenue.
It’s restructuring its lab development, growth, and operations. It’s focused on expanding and increasing the testing capabilities and accreditations at all its labs. And it’s shifting focus to initiatives that will give immediate returns.
Management is convinced that focusing on profitability and maximizing the efficiency and capabilities in existing revenue-generating labs is the best way to keep the company growing while the cannabis market awaits U.S. legalization.
And I agree. We’ve got coverage in states with large populations and big cannabis industries. Now, it’s time to streamline operations and make the company as efficient as possible. Then, when it’s time to go into expansion mode again, we’ll have a blueprint to follow for optimal profitability.
That also makes me happy because we’re not likely to see any major fund raises leading to share dilution. The company is focused on making every dollar of sales count and keeping those purse strings closed.
Marijuana Milestones
EVIO is already making the moves to streamline its labs. In fact, it’s already hit several key milestones along the way.
The company consolidated its Oregon locations into two labs — Medford and Portland — that can now serve the entire state cannabis industry. It also purchased a building in Tigard, where it consolidated four lab operations into one. That had a major effect on overhead in Oregon by eliminating the lease expenses while still allowing the company to serve the whole state.
It also expanded accreditations at its two remaining Oregon labs. It can now test for residual solvents in its Medford location. And it’s days away from receiving pesticide testing accreditation in Portland. Now, all those tests go through Medford, and the new accreditation in Portland will help streamline operations.
The company is also expanding in the oldest legal cannabis market in the U.S. EVIO increased sales efforts in the state by converting its Humboldt facility into a field sales office. All testing in that area will move through the Berkeley lab — one of only 27 licensed labs that serve over 1,000 licensed growers in the state.
The company is also close to having its new Costa Mesa location operational. It should be up and running in time for harvest season. And that’s going to help EVIO get some of that immediate revenue discussed earlier.
Also, in California, EVIO has a conditional-use permit to open a new facility in Palm Desert. But it’ll be spending some time assessing the market conditions before it moves forward with any lab build-out.
Moving to the other coast, we should see the new location in Massachusetts licensed and operational within the year. The Framingham location got its occupancy permit in June. And once the company finishes the final stages of licensing, EVIO Massachusetts will be one of only four labs serving the entire state.
And just a little to the north, Keystone Labs got its accreditation to test Canadian cannabis for heavy metals. That puts it in a position to be one of very few labs able to perform all Health Canada required testing. That’s a very well-timed expansion of capabilities, too. A wave of new products from edibles to concentrates and topicals is about to hit shelves in mid-October. And they’ll all need to be tested thoroughly.
The company has already taken major strides to increase efficiency and profitability. And it looks like they’re working. As long as management keeps on this path, we’re going to see EVIO go from an unknown microcap to a household name.
The New Green Rush
We also got an update on some of the efforts the company is making to ensure its future growth is still robust. The main bullet point of that part of the presentation is hemp.
The CBD market has been exploding since the U.S. government legalized industrial hemp through the 2018 Farm Bill. And EVIO has seen some of the profits coming from this entirely new market. But it’s not sitting back and just letting the hemp tests come in. It’s actively recruiting new customers through its latest marketing efforts.
EVIO recently launched a comprehensive hemp/CBD marketing campaign and set up a new website to make the process of setting up testing easier. The new website has already received orders from around the world. And it’s helped the company greatly expand reach and presence in the global cannabis and hemp markets.
Management expects revenue from hemp and CBD products to rapidly overtake cannabis testing revenues as the newly legal industry continues to grow.
All the Cool Kids Are Doing It
In case you’ve missed the news the past few weeks, vaping is under attack. Recent reports that teen vaping is on the rise have prompted everyone from helicopter parents to politicians to call for vaping to be banned. Never mind the fact that teen smoking is falling faster than teen vaping is rising.
There have also been several stories about vaping-related lung disease and deaths. Now, all of those cases turned out to be people vaping bootleg products that used vitamin E acetate and not legally manufactured ones that use other liquids that haven't made people sick. But it’s still been enough to cause a scare.
And it’s also been enough to give EVIO another potentially massive revenue stream. The company has gotten lots of requests from all over the U.S. And investor relations gave us one final note on potential future growth opportunities last week.
The company is working with its regulatory authorities to see how it can help. And that could become a massive source of revenue as EVIO addresses the real need for reliable and accurate testing of all e-liquids.
Coming Soon
That’s the long and short of the most recent news from EVIO. The company is making solid progress on its delinquent earnings reports. It’s focusing on optimizing operations and driving revenue growth at its existing locations. It’s cutting down on spending to make sure it doesn’t have to overextend its funding options. And it’s already hitting key milestones in its cost-cutting and revenue-driving initiatives.
And the fact that the update came in a press release and not an SEC filing makes all that even better. We’re going to see more investors turning up now that the company has a bigger presence.
And that should lead shares up. They’ve been stuck between $0.40 and $0.50 for a bit now. But that $0.40 level seems to be the floor. So I don’t have a problem continuing to recommend the stock.
To your wealth,
Jason Williams
Assistant Editor, The Wealth Advisory
Pisd thanks for sharing. In the Cannabis sector, imho, you have to have a solid niche and even then these companies need to have products that set them apart in given niche. Extraction and organic certification are both huge ingredients for success in the future of cannabis. The same can be said about TGODF as top organic grower in the world, or GTBIF as carrying the top end products to market. You can add CWBHF as top CBD/HEMP producer. What do all of these companies have in common? Top companies in their given sectors, and top niche players in the cannabis space. I see prices being driven down ahead of cannabis 2.0 in just three weeks. Out of the many companies that should see shares climb from Oct 17, I see MEDIF as my top pick to take advantage of these prices we seed today.
If you have done your dd, and you know your investment, you should have little to worry about long term. I consider days like this as great buying opportunities to accumulate shares and I sleep like a baby at night. GLTA
John Boehner is a consultant for Acreage Holdings ACRGF.
TGODF is a no brainer in the Cannabis space. As the supply grows, demand is less for flower. The black market will continue to thrive buying Flower. Flower is a commodity, period, UNLESS...its in a niche by itself...ORGANIC. Check. Managment is stellar. Check. Stock has been hammered as has the rest of the cannabis sector, a lot having to do with TGODF being late to the party. TGODF stock is down from $6.60 to near its low for the year. NASDAQ on the horizon, stock way way oversold. Analyst's just starting to really cover TGODF. There has never been a better time to buy. Check. This to me, is the one safe bet on growers. The rest are in a commodity driven sector where lowest price, (and really lowest quality)
is what we will see going forward. Let's recap: Top growth sector Cannabis. Top management. Top player in a stand alone niche. Stock just getting really noticed and the word is spreading by top analyst's. Stock way over sold near its low for the year. Cannabis 2.0 right around the corner. NASDAQ listing close.
I think we have checked all the boxes!
I just joined you at .7015. Glad to be here.