Sproutly Canada Inc. announced that it is expanding its commercial relationship with Kingston Cannabis Inc. Sproutly and KCI have agreed to form a joint venture that will utilize 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 JV a license to use the APP technology to produce and sell the products in Canada and Australia, and may elect to expand to other countries in which Sproutly has exclusive rights to the APP technology. KCI will provide the licensed facility and operating services to the JV while Sproutly will provide the APP license, technical services and oversight.

The parties will utilize the JV to jointly develop brands, market products, and share in JV profits. Sproutly retains the rights to grant APP licenses to other licensed producers and KCI retains the right to produce and sell other products that do not use the APP technology. APP processing operations are being set up at KCI allowing the JV to produce the extracts and finished products at the same site in order to minimize the cost to produce.