Sproutly nears Apollon Formularies acquisition, due diligence completed

LONDON, UK: Sproutly Canada and Apollon Formularies have announced the completion of their due diligence. Sproutly, a Canadian company that specializes in natural cannabinoids, terpenes, and mushroom compounds, is poised to acquire all global assets of Apollon, a UK-based company that focuses on natural biologics drug discovery, integrating cutting-edge artificial intelligence (AI) technology.

The transaction, which is pending the requisite exchange and regulatory approvals, will consolidate indispensable synergistic assets, intellectual property, and international intellectual property licenses, creating a global leader in the generative AI sector.

Apollon has intellectual property assets that are at the forefront of innovation in natural therapeutics, with combinatorial formulations that span therapeutics for cancer, inflammatory diseases, and chronic pain.

Apollon recently unveiled the successful outcomes of third-party pre-clinical testing, affirming the efficacy of their oncology products in combating breast cancer and prostate cancer cells.

Apollon has also strategically extended its reach by granting exclusive royalty based intellectual property licenses and sales agreements to a number of international partners, covering key regions, such as the US, Canada, Mexico, the European Union, Morocco, Israel, and South Africa.

Sproutly, on the other hand, has a proprietary technique called Aqueous Phytorecovery Process (APP), which allows it to extract premium phytonutrients from cannabis and hemp, capturing their complete and proportional profiles.

APP enables Sproutly Canada to produce true water-soluble formulations of natural nutrients for medicinal applications and adult use consumer products, without resorting to artificial chemical or physical techniques.

Under the terms of the binding Letter of Intent (LOI), dated September 12, 2023, Sproutly will issue to Apollon a sufficient number of Sproutly shares so that Apollon will own 49% of the enlarged share capital of Sproutly, post transaction.

The effective valuation of the disposal of Apollon’s assets will be CAD$7million (approximately £4.2million), based on the anticipated deemed price of CAD$0.02 (the price at which the trading of common shares of Sproutly was suspended).