Sproutly

What Sproutly does

Sproutly Canada, Inc. is a Vancouver-based, CSE-listed (CSE:SPR) cannabis technology company that operates as the exclusive licensee of APP Technology (Aqueous Phytocannabinoid Production) from Infusion Biosciences Inc. for Canada, the EU, the UK, Jamaica, Israel, and Australia. APP Technology produces two core ingredients — Infuz2O, a naturally water-soluble cannabis solution, and BioNatural Oils (BNO), cannabis plant oils infused into natural carrier oils — both of which preserve the full spectrum of plant bioactives without harsh chemical or physical extraction, enabling true-to-strain whole-plant experiences in beverages and edibles that distillate-based competitors cannot replicate. Sproutly monetizes through three primary revenue streams: (1) branded consumer product sales under the CALIBER umbrella (premium dried flower, Caliber Quick Shot gummies, and Infuz2O RTD beverages) distributed through supply agreements with six Canadian provincial cannabis Crown corporations; (2) B2B ingredient and extract sales to licensed producers, including via the Cannabis Manufacturer's Guild network of over 200 members; and (3) technology sublicensing of APP in territories where Sproutly holds exclusivity.

The company's go-to-market is partner-led: it relies on the Kingston Cannabis Inc. (KCI) joint venture for integrated flower-to-finished-product manufacturing, on CannaHive-acquired pharmaceutical-grade equipment for cannabis confectionary production, and on provincial distributors for retail reach. Geographically, Sproutly's footprint is concentrated in Canada, with international expansion rights held but not yet operationalized beyond an Australian license via the KCI JV. The company has experienced significant financial distress, with subsidiaries Toronto Herbal Remedies Inc. and Sproutly Inc. filing for CCAA protection in June 2022 and the BCSC issuing a cease trade order in September 2022 for failure to file audited financials. The parent entity is repositioning as a cannabis technology and IP-licensing business, divesting cultivation assets while retaining the APP license, the CALIBER brand portfolio, and the KCI manufacturing partnership.

Name

Sproutly

Legal name

Sproutly Canada, Inc.

Website

https://sproutly.ca

Company type

Public

Founded year

2018

Operating status

Operating

Headcount range

11–50 employees

Short description

Sproutly is a Vancouver-based cannabis technology company that licenses APP Technology to produce naturally water-soluble cannabis ingredients (Infuz2O, BNO) and sells branded CALIBER flower, gummies, and RTD beverages through six Canadian provincial distributors.

Ownership category

akta.pro rank

Product category

Cannabis Ingredients & Manufacturing

NAICS

Medicinal and Botanical Manufacturing (325411)

SIC

Medicinal Chemicals & Botanical Products (2833)

akta.pro primary industry

Cannabis Accessories & Ancillary Products Wholesale (Vapes, Packaging, Hardware) (CRAOAIAH)

Keywords

• Cannabis ingredient supply
• Water-soluble cannabis extracts
• Cannabis beverage technology
• Cannabis contract manufacturing
• Cannabis edible production

Headquarters

HQ city

Vancouver

HQ country

Canada

HQ region

North America

Offices3 records

Markets served

GTM type

B2B and B2C

Offering type

Hardware or Manufacturing

Cost components

Personnel, Supply Chain, Operations, Technology or R&D, Marketing or Sales, Infrastructure

Revenue model

1. Product Sales (Own Branded): Sale of CALIBER branded cannabis flower, cannabis-infused beverages (Infuz2O RTD shots), gummies (Caliber Quick Shot), and future Cannabis 3.0 products through provincial supply agreements in Canada. Products sold in 6 provinces including Ontario, Alberta, Saskatchewan, Manitoba, British Columbia, and New Brunswick.
2. Technology Licensing & Sublicensing: Sproutly licenses the APP technology to other licensed producers and may elect to expand sublicensing arrangements in territories where it holds exclusive rights (Canada, EU, UK, Australia, Israel, Jamaica). The company retains rights to grant APP licenses to other licensed producers.
3. Co-Packing & Manufacturing Services: Joint venture with KCI provides manufacturing, formulation, and packaging services. APP processing operations are set up at KCI allowing integrated flower-to-finished product service. Revenue from toll manufacturing arrangements with partners.
4. B2B Extract Sales: Sale of proprietary whole plant cannabis extracts produced via APP Technology to CMG's network of Guild members and other licensed producers. Facilitates business-to-business sales of Sproutly's proprietary whole plant extracts.
5. Brand Licensing (CMG Brands): Agreement with Cannabis Manufacturer's Guild allows Sproutly to utilize brands developed by CMG and its affiliates, expanding the innovative product portfolio. Sproutly produces and sells Acquired Products through THR.

Go-to-market motion1 record

Distribution channels3 records

Marketing channels5 records

Core offering

Sproutly supplies proprietary cannabis ingredients (Infuz2O water-soluble cannabis solution and BioNatural Oils) and customized formulations to the cannabis beverage and edibles market using its exclusively licensed APP Technology. The company sells these ingredients B2B to licensed producers and uses them to manufacture finished branded consumer products (CALIBER flower, Caliber Quick Shot gummies, Infuz2O RTD beverages) distributed through Canadian provincial cannabis distributors. The company also licenses APP Technology and provides contract manufacturing services through its KCI joint venture.

Product overview

Sproutly operates as both a B2B ingredient supplier and consumer product company in Canada's cannabis industry. The company holds an exclusive license to APP Technology, which produces proprietary natural water-soluble cannabis ingredients (Infuz2O) and BioNatural Oils (BNO) for Cannabis 2.0 beverages and consumables. These core ingredients are used internally to formulate branded consumer products and are offered to partner companies. Sproutly's product portfolio includes: (1) proprietary ingredient products (Infuz2O, BNO) for B2B sales to licensed producers; (2) finished consumer brands including CALIBER premium flower products, Caliber Quick Shot gummies, and Infuz2O ready-to-drink beverages; and (3) manufacturing capabilities acquired from CannaHive for large-scale confectionary production. The company operates through its wholly-owned subsidiary Toronto Herbal Remedies Inc. and partners with licensed producers for distribution across Canadian provinces.

Differentiator

Problem solved

Functional benefit

Brands

• CALIBER: Premium recreational cannabis flower brand. Includes CALIBER Flower, CALIBER Reserve Flower, and CALIBER Quick Shot (cannabis-infused gummies).
• Infuz2O
• BioNatural Oils (BNO)

Products and services

• Infuz2O (Water-Soluble Cannabis Solution) Proprietary natural water-soluble cannabis solution produced using APP Technology, delivering the whole plant spectrum of natural bioactive molecules for use in cannabis beverages and consumables. Enables true-to-strain experiences (Sativa, Indica, Hybrid) with predictable and rapid onset and offset, without artificial chemicals or harsh physical extraction. Sold B2B to licensed producers and used as the base ingredient for Infuz2O RTD beverages.
• BioNatural Oils (BNO) Cannabis plant oils infused into natural carrier oils, delivering the whole plant spectrum of natural bioactive molecules. Enables edible and confectionary cannabis products with strain-specific profiles without harsh chemical extraction. Sold B2B to licensed producers and used in Cannabis 2.0 product formulations.
• CALIBER Premium Cannabis Flower Premium recreational cannabis flower brand including CALIBER (standard) and CALIBER Reserve (premium indoor-grown) dried flower products. Sold across six Canadian provinces (Ontario, Alberta, Saskatchewan, Manitoba, British Columbia, New Brunswick) through provincial cannabis distributors for adult-use consumers.
• Caliber Quick Shot Cannabis-Infused Gummies Cannabis-infused gummies produced using strain-specific whole-plant extracts (APP Technology), compliant with Canada's Cannabis Act (5mg THC per gummy, 10mg per package). Manufactured using pharmaceutical-grade automated equipment acquired from CannaHive Inc. that produces gummies directly into blister packs without airborne contamination.
• Infuz2O Ready-to-Drink (RTD) Cannabis Beverages All-natural water-soluble cannabis-infused beverages delivering true-to-strain experiences with predictable onset/offset. Available in 2oz (60mL, 5mg THC) and 8oz (237mL, 10mg THC) formats. Packaged in custom-designed aluminum bottles (via Kingston Aluminum Technologies) with proprietary internal coating for improved product preservation.
• Cannabis Dissolvable Powder Cannabis dissolvable powder product utilizing CannaHive's proprietary manufacturing and packaging equipment at THR's Health Canada licensed facility. Enables flexible dosing and formulation for beverages and other consumable applications.
• APP Technology Licensing Exclusive licensed APP Technology platform for producing naturally water-soluble cannabis extracts and BioNatural Oils without chemicals or harsh physical extraction. Licensed to Sproutly for Canada, EU, UK, Jamaica, Israel, and Australia, with rights to grant sublicenses to other licensed producers. Includes pharmaceutical-grade manufacturing capabilities.

Quantifiable outcome

• Produces cannabis extracts without exposure to airborne contaminations through automated blister pack manufacturing
• +2 more outcomes

Named customers6 records

Segments4 records

Ideal customer profiles4 records

Technology focussed Yes

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Feature4 records

Partnerships

Four partnerships are on record, tiered core.

• CannaHive Inc.coreStrategic or Co-development Partner · 16 August 2021Asset acquisition of CannaHive Inc.'s automated pharmaceutical-grade manufacturing equipment for cannabis confectionaries (gummies and chocolates). Equipment produces edibles at large scale directly into blister packs without airborne contamination exposure. The acquisition superseded the prior definitive agreement from April 2021 and provides Sproutly with in-house capability and control over large-scale production of unique gummies incorporating proprietary APP cannabis ingredients.
• Kingston Cannabis Inc. (KCI)coreStrategic or Co-development Partner · 18 April 2021Joint venture formed in April 2022 to utilize APP Technology for producing proprietary whole plant extracts of cannabis and hemp, formulating, manufacturing, and selling beverage and edible products. Sproutly grants JV a license for APP technology in Canada and Australia; KCI provides licensed facility and operating services. Integrated flower-to-finished product service minimizes production costs. JV enables Sproutly to offer partners fully integrated manufacturing.
• Cannabis Manufacturer's Guild Ltd. (CMG)coreGTM or Marketing Partner · 17 December 2020Definitive agreement signed May 2021. Sproutly utilizes CMG-developed brands and expands its product portfolio. Agreement allows Sproutly to sell Acquired Products through THR and facilitate B2B sales of proprietary whole plant extracts to CMG's network of over 200 Guild members. CMG brings expertise in branding, commercialization, and distribution of cannabis products.
• Infusion Biosciences Inc.coreOEM/ Whitelabel/ Licensing PartnerExclusive technology licensor of APP Technology to Sproutly for Canada, EU, UK, Jamaica, Israel, and Australia. Infusion Biosciences developed the APP Technology for producing water-soluble cannabis extracts. Also a related party lender: provided $1,000,000 loan (January 2020) and $855,000 loan (August 2020) to Sproutly, both extended to April 2022 maturity. Dr. Arup Sen serves as CEO of both companies.

Scale indicators7 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• The Valens Company: Canadian cannabis extraction specialist and white-label manufacturer producing emulsions, distillates, and formulated ingredients for cannabis beverages and edibles. Directly comparable B2B ingredient/formulation model serving licensed producers.
• MediPharm Labs: Pure-play cannabis extraction company producing concentrates and derivative ingredients for the medical, wellness, and recreational markets. Comparable as a technology-driven cannabis ingredient supplier with B2B contracts.

Broad incumbents

• Canopy Growth Corporation: Largest Canadian cannabis producer with Quatreau sparkling water and other cannabis beverage products. Overlaps with Sproutly in the cannabis beverage category but operates at vastly larger scale and with vertically integrated distribution.
• OrganiGram Holdings: Canadian cannabis producer with edible and beverage product lines competing in provincial distribution. Comparable in product category and Canadian provincial retail exposure.
• HEXO Corp: Canadian cannabis producer with Original Stash and other Cannabis 2.0 products including beverages and edibles. Competes with Sproutly in the same provincial distribution channels and product categories.
• Cronos Group: Global cannabis company with branded consumer products including cannabinoid-infused offerings. Comparable as a publicly-traded Canadian cannabis operator with broad product ambitions.
• Aurora Cannabis: Major Canadian licensed producer with a portfolio of dried flower, vapes, and edibles, competing in the same provincial retail channels as Sproutly's CALIBER brand.
• Tilray Brands: Global cannabis and CPG company with cannabis-infused beverages (HI-Ball, SweetWater) and a broad product portfolio. Comparable in cannabis beverage category but at much larger scale and broader geographic reach.

Regional players

• Sundial Growers: Canadian cannabis producer focused on premium dried flower and derivative products. Comparable as a Canadian public LP competing in similar provincial channels, with overlapping flower and extract offerings.

Emerging players

• Province Brands of Canada: Canadian beverage company developing cannabis-infused beer and brewed non-alcoholic alternatives. Directly comparable as a Canadian cannabis beverage innovator, though smaller and earlier-stage than Sproutly.

Market position

Strengths4 records

Weaknesses4 records

Competitive moat4 records

Key risks6 records

Key highlights5 records

Customer concentration

• Xx.com/sproutlycanada

Compliance1 record

Revenue estimate

Valuation estimate

Number of profiles

Profiles4 records

Subsidiaries2 records

Funding overview

Funding rounds3 records

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A2 records

Investments

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Sproutly