Benzinga | Jul 20, 2021 09:08AM EDT

Sproutly Canada Reports Fiscal Year Net Loss Of CA$61.6M, Calling It A 'Transitional Year'

Sproutly Canada, Inc. (CSE:SPR) (FRA: 38G) (OTCQB: SRUTF) posted its financial reports for the fiscal year ended February 2021 Monday, reporting net revenue of CA$316,424 ($247,871) compared to net revenue of $926,972 in the prior fiscal year.

The Vancouver-based company also disclosed net loss for the year of CA$16.41 million or CA$0.06 per share, versus a net loss of CA$61.61 million or CA$0.30 per share in the comparative period of the previous year.

Sproutly held CA$171,818 in cash at the end of the reporting period compared to CA$32,287 it held at the end of the prior fiscal year.

"Fiscal 2021 was a transitional year for Sproutly," Dr. Arup Sen, CEO and director of Sproutly stated. "With the onset of the COVID-19 pandemic, we created and began to implement our business transformation plan."

Sen explained that the move brought a notable decrease in the company's operating expenses and important changes to its business strategy.

"Following the receipt of the Cannabis 2.0 license, we converted our licensed facility and signed agreements with partners to focus on the production, marketing, and sales of innovative cannabis 2.0 products," Sen concluded.

Business Highlights

* During the fourth quarter of fiscal 2021, Sproutly executed two letters of intent to team up with Cannabis Manufacturer's Guild Ltd. and with CannaHive Inc;

* After the reporting period, Sproutly issued 26.97 million units at a $0.05 for a total of $1.35 million and executed the above-mentioned agreements;

* The company finalized the formulation of its initial edible gummy and beverages and filed its NNCP notification with Health Canada, required to sell these products in Canada;

Price Action

Sproutly shares closed Monday market session 2.46% lower at $0.05 per share.

Photo by Ali Tawfiq on Unsplash