Sprout AI Inc. Second Quarter Financial Report

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VANCOUVER, British Columbia, August 20, 2021 (GLOBE NEWSWIRE) – via InvestorWire – Sprout AI Inc. (“Sprout AI” or the “Society”) (CSE: SPRT) has filed its unaudited second quarter (T2) interim financial statements and MD&A (MD&A) for Sprout AI Inc. (formerly 1262803 BC LTD.) and Sprout AI SA (Sprout AI).

The EF and MD&A represent a consolidated report relating to both Sprout AI Inc. and Sprout AI SA (Sprout AI).

Sprout AI Inc has published its interim results ending May 31, 2021, in Canadian dollars, and Sprout AI SA has published its interim results ending April 30, 2021, in US dollars.

Highlights of the second quarter

Proposed acquisition of Sprout AI, SA
On November 4, 2020, the Company signed a letter of intent with Sprout AI pursuant to which the Company will acquire a 100% interest in all issued and outstanding securities of Sprout AI.

Sprout AI is responsible for the planning, design, implementation and support of vertical automated aeroponic grow habitats designed to operate in high density urban environments with limited access to electricity. and water.

On December 7, 2020, the Company signed a securities exchange agreement (the “Final Agreement”) with Sprout and the shareholder of Sprout AI. Pursuant to the Definitive Agreement, the Company will acquire all of the outstanding securities of Sprout for the following:

  1. 50,000,000 ordinary shares of the Company (issued on June 1, 2021).
  2. 10,000,000 Company performance share subscription warrants (granted on June 1, 2021). Each warrant will allow its holder to purchase one additional common share of the Company at an exercise price of $ 0.17 for a period of three years. These warrants are acquired as follows:
    1. A third vested in the Company realizing $ 3,000,000 in total revenues;
    2. A third vested in the Company realizing $ 6,000,000 in total revenues; and
    3. A third vested in the Company realizing $ 9,000,000 in total revenues.

The Company will also provide Sprout AI with repayable bridging funding of $ 400,000, of which $ 150,000 was advanced during the execution of the LOI (completed) and $ 250,000 (completed) was advanced during the execution of the LOI (completed). signing of the final agreement. Interim financing is unsecured, does not bear interest and is repayable if the definitive agreement is terminated.

Product Use Disclosure

As part of the fundraising activities during the period ended November 30, 2020, the Company raised gross proceeds of $ 397,500. The Company expected that it would use the proceeds from financing activities for short-term capital needs, for a bridge loan to Sprout AI and for future working capital of the Company as a result of its proposed transaction with Sprout AI. . The following table shows the initially proposed uses of the proceeds from fundraising activities during the period ended November 30, 2020. Except as noted below, there has been no variation from these. proposed uses and the Company continues to pursue its original activities. objectives of these funds.

Product use Proposed expenses Actual expenditure
(As of May 31, 2021)
Short-term capital requirements $ 100,000 $ 149
Bridge loan to Sprout AI, SA $ 400,000 $ 397,351
Amount of future working capital for the issuer resulting in the transaction with Sprout AI, SA

$ 300,000

$ Nile

As part of the financing activities during the period ended May 31, 2021, the Company raised gross proceeds of $ 2,100,000. The Company expected that it would use the proceeds from the financing activities for short-term capital needs, for a bridge loan to Sprout AI and for future working capital of the Company as a result of its proposed transaction with Sprout AI. . The following table presents the initially proposed uses of the proceeds from fundraising activities during the period ended May 31, 2021. Except as indicated below, there has been no variation from these. proposed uses and the Company continues to pursue its original activities. objectives of these funds.

Product use Proposed expenses Actual expenditure
(As of May 31, 2021)
Short-term capital requirements (remaining amount)

$ 99,851

$ Nile

Bridge loan to Sprout AI, SA (remaining amount)

$ 2,649

$ 2,649

Amount of future working capital for the issuer resulting in the transaction with Sprout AI, SA

$ 300,000

$ 260,201

Sprout AI confirms that the above bridge loan and working capital were used for operating purposes during this period.

Additional details regarding the Agreement can be found in the documents filed by the Company at www.sedar.com and more specifically, in its final prospectus dated May 31, 2021 (the “Prospectus”).

Other updates

Sprout AI Inc. also wishes to announce the departure of Josh Lebovic as Chief Financial Officer (CFO) of Sprout AI Inc. effective August 30, 2021. “On behalf of Sprout AI Inc. and Sprout AI SA, we would like to thank Mr. Lebovic for his hard work in getting Sprout AI listed and up and running, ”said Chris Bolton, CEO of Sprout AI Inc. An interim CFO for Sprout AI Inc. will be announced prior to Mr. Lebovic’s departure.

About Sprout AI

Sprout AI is a vertical agriculture technology company engaged in the planning, design, manufacture and / or assembly of sustainable and scalable AI-controlled vertical cultivation equipment for agriculture. vertical indoors. Adaptive technology produces an environment with improved growth parameters and early detection of adverse conditions resulting in consistent and reproducible cultures, with shorter culture cycles independent of geographic climates.

Self-contained, multi-level rolling rack technology increases cubic growing area while reducing the risk of exterior and cross-contamination.

For more information on Sprout AI, please visit http://sproutai.solutions.

Chief Executive Officer
Chris Bolton
Sprout AI Inc.
Telephone: +011 (507) 6384-8734
Email: [email protected]

Investor Relations Contact
Colleen McKay
Phone: + 1 (289) 231-9026
Email: [email protected]

Website: http://sproutai.solutions

Address: International Business Park,
Unit 5B, Building 3860
Panama Pacifico, Republic of Panama

THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS COMMUNICATION, NOR THE CSE REGULATORY SERVICE PROVIDER.

Forward-looking statements

This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation, with respect to the Company. The forward-looking information included in this press release is not based on historical facts, but rather on the expectations of the management of the Company regarding the future growth of the Company, its results of operations, its performance, its business prospects and its opportunities. This press release uses words such as “will”, “expects”, “anticipates”, “intends”, “plans”, “believes”, “estimates” or similar expressions to identify issues. forward-looking information. This forward-looking information reflects the current beliefs of the Company’s management, on the basis of the information currently available to it.

This forward-looking information includes, among other things, statements relating to: the Order, the intentions, plans and future actions of the Company; statements relating to the business and future activities of the Company and anticipated developments in the operations of the Company. In addition, any statement that refers to expectations, intentions, projections or other characterizations of future events or circumstances contains forward-looking information. Forward-looking statements are based on certain assumptions and analyzes made by the Company in light of experience and perception of historical trends, current conditions and expected future developments and other factors it deems appropriate and are subject to to risks and uncertainties.

Although the Company believes that the assumptions underlying these statements are reasonable, they may prove to be inaccurate and there can be no assurance that actual results will be consistent with these forward-looking statements. In light of these risks, uncertainties and assumptions, potential investors should not place undue reliance on these forward-looking statements. The compliance of actual results, performance or achievements with the Company’s expectations and forecasts is subject to a number of risks, uncertainties, assumptions and other known and unknown factors, including: global health issues or national, including the outbreak of a pandemic or contagious diseases, such as COVID-19 and including the development of new variants of COVID-19, the duration and effect thereof and the delays associated with the development, procurement and distribution of vaccines; the risks associated with the effective management of the growth of the Company; liabilities and risks, including environmental liabilities and risks associated with the operations of the Company; the Company’s ability to attract and retain customers; the competitive nature of the industries in which the Company operates; and the other risk factors described in the Company’s final detailed prospectus dated May 31, 2021.

If any of these risks or uncertainties materialize, or if the assumptions underlying the forward-looking statements prove to be incorrect, actual results could differ materially from those anticipated in the forward-looking statements. The information contained in the forward-looking statements in this press release is provided as of the date of this press release, and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information or events. or future results, except to the extent required by applicable Canadian securities laws. Therefore, potential investors should not place undue reliance on forward-looking statements or the information contained therein.

All forward-looking information contained in this press release is expressly qualified by the foregoing caveats.

Contact wire service
InvestorWire (IW)
Los Angeles, California
www.InvestorWire.com
212.418.1217 Office
[email protected]


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