Sproutly Canada Inc. (OTCMKTS: SRUTF) Issues Common Shares In Place Of Semi-Annual Indenture Interest Rate Payments

Sproutly Canada Inc. (OTCMKTS: SRUTF) has announced that pursuant to its convertible debenture indenture of October 24, 2018, between Sproutly and TSX Trust Company, as trustee has been amended as per the first supplemental Indenture dated APRIL 24, 2020. Also, the amendment is per second, third, and fourth supplemental indentures dated July 23, 2020, September 23, 2020, and April 22, 2021, respectively.

Sproutly to settle accrued and unpaid indenture interest 

Sproulty is planning to settle unpaid and accrued Interest under the Indenture for around $70,000 via the issuance of $1.4 million common shares of its capital at $0.05 per Settlement Share.

The Interest is a semi-annual interest fee under the Indenture, and it will be fully resolved when the Settlement Shares are issued. The convertible debentures holders voluntarily opted to pay the interest in the company’s common shares, allowing Sproutly to save funds for future operations.

Sproutly released fiscal Q2 2022 results

Recently the company announced its fiscal Q2 2022 financial results for the quarter ending August 31, 2021. CEO and Director of Sproutly Arup Sen said, “We continued to make progress in the development of our 2.0 products through the first half of fiscal 2022, as well as establishing the necessary groundwork with the partnership with Kingston Cannabis Inc. (“KCI”). We are focused on long term sustainability in order to deliver 2.0 and in time, 3.0 products, to the Canadian market and believe that partnerships like the one with KCI are an important next step.”

The company converted a principal amount of $250,000 under a convertible debenture indenture dated October 24, 2018, between the company and TSX Trust Company. Interestingly all unpaid and accrued interest on the converted Principal will be due and payable under the Indenture terms, and the Company settled $8,222.22 in interest by issuing 91,358 common shares at $0.09 per share.

Sproutly settled unpaid and accrued interest under the Indenture in the amount of $70,000 by issuing 1.167 million common shares for $0.06 per share, under a convertible debenture indenture dated October 24, 2018.