Sproutly Completes Shares for Debt Settlement

Rhea-AI Summary

Sproutly Canada, Inc. has successfully settled outstanding debt totaling $145,448.44 through the issuance of 2,908,968 common shares at $0.05 each. This move extinguishes the debt owed to two arm’s length creditors, simplifying the company's financial obligations. The issued shares will be subject to a four-month and one-day hold period under Canadian securities laws. Sproutly aims to lead in providing unique ingredients for the cannabis beverage and edibles market, focusing on partnerships with established consumer brands.

Positive

• Successful settlement of debt totaling $145,448.44.
• Issuance of 2,908,968 common shares strengthens financial position.
• Shares priced at $0.05 each provide liquidity for the company.

Negative

• None.

NOT FOR DISSEMINATION IN THE US OR THROUGH US NEWSWIRE SERVICES

VANCOUVER, British Columbia--(BUSINESS WIRE)-- Sproutly Canada, Inc. (CSE: SPR) (OTCQB: SRUTF) (FSE: 38G) (“Sproutly" or the “Company”) announces that, further to its news release dated September 16, 2021, it has settled outstanding current debt (the “Debt Settlement”) of the Company and the Company’s subsidiary, Toronto Herbal Remedies Inc., in the aggregate amount of $145,448.44 (the “Debt”), pursuant to the terms of debt settlement agreements with two arm’s length creditors (the “Creditors”). In settlement of the Debt, the Company has issued an aggregate of 2,908,968 common shares in the capital of the Company (the “Settlement Shares”) at a price of $0.05 per Settlement Share.

The Debt has been extinguished following the issuance of the Settlement Shares.

All securities issued in connection with the Debt Settlement are subject to a four-month and one day hold period from date of issuance under applicable Canadian securities laws, in addition to such other restrictions as may apply under applicable securities laws of jurisdictions outside Canada.

About Sproutly Canada, Inc.

Sproutly’s core objective is to become the leading supplier of unique ingredients and customized formulations to the cannabis beverage and edibles market. Our water-soluble Infuz2O and BioNatural Oils will deliver revolutionary brands to international markets that are striving to produce differentiated consumer products. Sproutly’s business focus is to execute on partnerships with local and globally established consumer brands to leverage their existing customer bases, further expand brand loyalty, assist with marketing, and support distribution networks to deliver this scientific breakthrough with speed and efficiency worldwide.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20210922006010/en/

Craig Loverock, Chief Financial Officer of Sproutly Canada, Inc.

Email: investors@sproutly.ca

Source: Sproutly Canada, Inc.

FAQ

What is the latest update from Sproutly Canada, Inc. related to their debt?

Sproutly Canada, Inc. has settled outstanding debt of $145,448.44 by issuing 2,908,968 common shares at a price of $0.05 each.

How many shares did Sproutly issue for debt settlement?

Sproutly issued a total of 2,908,968 common shares for the debt settlement.

What is the significance of the debt settlement for SRUTF investors?

The debt settlement improves Sproutly's financial standing, reducing liabilities and potentially increasing shareholder value.

What is the hold period for the shares issued by Sproutly?

The shares issued in connection with the debt settlement are subject to a four-month and one-day hold period under Canadian securities laws.