Newswire Naturally Splendid Sells Manufacturing Stake to Refocus Efforts -- CFN Media 03/05/2018 8:30:00 AM
SEATTLE, WA, March 05, 2018 (GLOBE NEWSWIRE) -- CFN Media Group ("CannabisFN"), the leading creative agency and media network dedicated to legal cannabis, announces publication of an article discussing Naturally Splendid Enterprises (TSX-V: NSP) (OTCQB: NSPDF) decision to sell their position in the POS BPC Manufacturing Corp, opening up new opportunities for the company.
The hemp industry has experienced tremendous growth over the past several years and there are no signs of slowing down. According to the Hemp Business Journal, the CBD market could reach $2.1 billion by 2020 with hemp-based products accounting for $450 million of those sales. This represents a 700 percent increase in revenue from 2016, which makes hemp-based CBDs one of the cannabis industry fastest growing subsets.
Naturally Splendid Enterprises (TSX-V: NSP) (OTCQB: NSPDF) is a biotechnology and consumer products company focused on developing, manufacturing, and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient dense foods, and related products. After selling its interest in POS BPC Manufacturing Corp., the company has a significant influx of capital that it can use to execute on its strategic business plans.
Naturally Splendid Sells POS BPC Stake
Naturally Splendid acquired a 51 percent interest in POS BPC Manufacturing Corp. on June 15, 2017 for $1,971,000 in cash and stock. After a series of advances in extraction and formulation methods, the company determined that funds that would be required to upgrade BPC to take advantage of these advancements would be better spent expanding capacity at its wholly-owned Pitt Meadows packaging and distribution facility.
On February 22, the company announced the sale of its 51 percent ownership stake for $3,536,650. The transaction represents a gain of $1,565,650 that adds immediate non-dilutive cash to its operations and enables it to explore other opportunities in the space. The company’s goal is to develop its own state of the art facility that will focus on the latest extraction and formulation methods through strategic alliances and partnerships.
“I am very pleased with the decision to sell our position in the BPC facility,” said CEO Doug Mason in the press release announcing the deal. “This immediately adds non-dilutive cash to our operations and allows us to explore and execute on other opportunities the company has been researching. As reported earlier, Naturally Splendid has begun preparing a submission to become a Licensed Dealer of cannabis extracts under the Canadian regulatory regime.”
In the meantime, the company announced that it has identified third-party manufacturers facilities to produce its proprietary, HempOmega™, Hemp Emulsion and Hemp Protein Isolate (provisional patent) products. The company’s intellectual property has already attracted interest from notable food manufactures both domestically as well as internationally, with HempOmega™ already being commercialized in multiple products. These products help to insulate the company somewhat from while cannabis regulations continue to evolve in Canada.
Focused on Building Its Own Operations
Naturally Splendid is a leader in hemp-derived products with many retail products under the NATERA®, Elevate Me™, CHII™, and Pawsitive FX™ banners and intends to expand that reputation into the emerging cannabidiol (CBD) space with a growing line up of products and services.
In late 2017, the company acquired Prosnack Natural Foods Inc., who are the makers of the Elevate Me™ brand. Prosnack produces energy bars, protein bars, snack bites, balls, oatmeals, etc. Additionally, they develop custom formulations for nationally recognized brands and co-pack/private label for many large retailers in Canada and the U.S. The goal of this acquisition was to have ready products to be fortified with CBD in anticipation of legalization in 2018 in Canada. |
