Canadian Manufacturing

Sproutly expands relationship with Kingston Cannabis

Sproutly will grant the joint venture a license to use the APP technology to produce and sell their products in Canada and Australia.

April 19, 2022   by CM Staff

VANCOUVER — Sproutly Canada, Inc. says it will expand its commercial relationship with Kingston Cannabis Inc., a Health Canada Licensed processor.

A statement from the Sproutly explains that the company and KCI have agreed to form a joint venture (JV) that will leverage the proprietary APP technology to produce proprietary, natural, whole plant extracts of cannabis and hemp which will be used to formulate, evaluate, manufacture, and sell beverage and edible products.

Sproutly will grant the joint venture a license to use the APP technology to produce and sell the products in Canada and Australia. Sproutly says it may also expand to other countries in where it has exclusive rights to the APP technology.

KCI will provide the licensed facility and operating services to the joint venture while Sproutly will provide the APP license, technical services and oversight. The parties will use the joint venture to jointly develop brands, market products, and share in joint venture profits.

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Under this operation, Sproutly will retain the rights to grant APP licenses to other licensed producers and KCI will retain the right to produce and sell other products that do not use the APP technology.

“Expanding the scope of the existing Sproutly-KCI relationship with this JV is a show of our successful collaboration in formulating and evaluating beverages using APP extracts. The JV will now integrate APP processing and finished product manufacturing to avoid potential issues that arise from divided manufacturing and avoid duplication of some operational expenses,” said Arup Sen, CEO and director of Sproutly in a statement.