Cannabis beverage company Sproutly isn't focusing its strategy on the United States, amid the illegality of recreational cannabis use.

"We're going to stay from the U.S. guidelines for right now and focus on the regulated jurisdictions - Canada, Australia, the EU," Keith Dolo, Sproutly's CEO.

As for its looming IPO in Canada, which will legalize recreational marijuana use beginning on October 17, Dolo said it allows the company to raise capital cheaply and expand its brand awareness.

Want exclusive investing insight from Jim Cramer? Get 24/7 access to Jim's charitable trust portfolio with a free trial to Action Alerts PLUS!

More from Video

Podcast: What Does the Cannabis Industry Have in Common with the Dot-Com?

Podcast: What Does the Cannabis Industry Have in Common with the Dot-Com?

Tesla Seeks Price Reductions and 4 Other Stories to Watch Premarket Monday

Tesla Seeks Price Reductions and 4 Other Stories to Watch Premarket Monday

Podcast: What TheStreet's Interns Learned From Jim Cramer and Action Alerts PLUS

Podcast: What TheStreet's Interns Learned From Jim Cramer and Action Alerts PLUS

Bank of America, Tariffs and the Goldman Sachs CEO Change: Jim Cramer Rewind

Bank of America, Tariffs and the Goldman Sachs CEO Change: Jim Cramer Rewind

Lee Munson on the Market, Trade and the Possibility of a Recession

Lee Munson on the Market, Trade and the Possibility of a Recession