Mr. Keith Dolo reports

SPROUTLY RECEIVES PROCESSING LICENSE FROM HEALTH CANADA

Sproutly Canada Inc.'s wholly owned subsidiary, Toronto Herbal Remedies Inc. (THR), a licensed producer under the Cannabis Act, has received a processing licence from Health Canada, effective March 29, 2019. The processing licence allows THR to produce cannabis oil and related products and will also allow the company to conduct certain research and development activities, including the formulation of proprietary beverage products.

"We are making steady progress towards achieving Sproutly's mission of delivering a safe and consistent whole-plant experience from cannabis with a lead position in the beverage market. The processing licence grant is a major milestone towards the path to commercializing our cannabis beverages and other edible products. Specifically for cannabis beverages, we can now continue to advance our formulation work at our own production facility as we prepare for the legalization of cannabis beverages later this year," said Keith Dolo, chief executive officer and director. "Our plan is to deliver cannabis beverages that will not only look and taste great, but also where consumers will feel the cannabis effects within five minutes and dissipate within 90 minutes. With Infuz2O's fast-onset and fast-offset characteristics, the experience is more similar to drinking a beer, compared to traditional cannabis oils that have an unpredictable, multihour experience."

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

About Sproutly Canada Inc.

Sproutly's core mission is to become the leading supplier to the cannabis beverage and edibles market. The company's Toronto-based facility, licensed under the Cannabis Act, was built to cultivate pharmaceutical-grade cannabis to supply a technological breakthrough in producing and formulating the first natural, truly water-soluble cannabis solution. The company's water-soluble ingredients and its bio-natural oils will deliver revolutionary brands to international markets that are clamouring for well-defined commercial products.

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