The company is currently securing the acreage for organic hemp seed production, however, as new hemp regulations under Bill C-45 come into effect, the company has the option to convert some or all the acreage to CBD (cannabidiol) production.
Naturally Splendid anticipates designating a portion of the organic cultivation for research and development of high yielding CBD (cannabidiol) hemp and intends to expand this model of identifying organic acreage for hemp seed and/or CBD cultivation to secure additional acreage in the future.
Russ Crawford, Naturally Splendid Director and President of the Canadian Hemp Trade Alliance, stated: “The pending regulations addressing the legalization and deregulation of cannabis in Canada signals a new beginning for the hemp industry, and in particular, organic production. Securing organic acreage to meet future demands as the uses for organic hemp increase with the coming of the new regulations, positions the Company for sustainable growth.”
Douglas Mason, CEO, added: “Securing organic acreage is very much a cornerstone to our vertically integrated business plan. The recent acquisition of hemp processor ACI Foods, strengthens our efficiencies in product supply of organic hemp seed, hemp hearts, hemp oil and hemp protein into existing Company retail brands NATERA® and Chii™ while increasing our margins considerably. As importantly, the fact that we can convert the acreage from hemp seed production to CBD (cannabidiol) production gives us immense flexibility as the new hemp regulations come into effect. Additionally, we continue down the path of securing a Dealer’s License which in turn allows Naturally Splendid a myriad of new revenue opportunities including cannabinoid extraction and toll processing, as well as the ability to introduce new CBD fortified products currently under development by our experienced team of formulators. Product categories for CBD fortification under development include food and supplements, beverages, skincare and cosmetics and pet care and food products which we plan to market through established distribution channels with our existing divisions and brands.”
Naturally Splendid is a biotechnology and consumer products company that is developing, producing, commercializing, and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient dense foods, and related products. The company is building an expanding portfolio of patents (issued and pending) and proprietary intellectual property focused on the commercial uses of industrial hemp and non-psychoactive cannabinoid compounds in a broad spectrum of applications.
The company recently secured a purchase order from a renowned National Distributor in Canada, which cannot be identified due to competitive and confidentiality reasons, for its NATERA® and Elevate Me™ brands. The initial purchase order is valued in excess of $100,000 with the first shipment delivered earlier in Q2 of 2018. The addition of a National Distributor adds to the over 1,500 stores Elevate Me™ is currently sold in and increases the NATERA® brand distribution network significantly.
Alan Maddox, Executive VP Sales & Marketing, added: “We are very excited to have secured this top tier national distributor for our NATERA® and Elevate Me™ brands as we continue to penetrate the national retail sector in Canada. We are developing additional products that combine the best of NATERA® Hemp Food products with the processing expertise of ProSnack. Naturally Splendid is in the unique position of being experts in both the bar manufacturing and hemp processing business for over ten years. A claim most other bar manufacturers and hemp processors cannot make. Most our competitors may claim expertise in one of those two areas, but few have expertise in both areas. I believe it is differences like this that will propel Naturally Splendid to the forefront of new consumer goods as regulations surrounding cannabis sativa continue to evolve in Canada as well as many international markets“.
The company recently announced a private placement for gross proceeds of up to $1.26 million through the placement of up to 7,000,000 units, priced at $0.18 per unit, with each unit consisting of 1 share and one-half a warrant, with each full warrant exercisable at $0.27 for 24 months, subject to an acceleration clause. Proceeds will be used for expansion of Naturally Splendid’s existing facilities and for working capital purposes.
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Barry Morgan, CFO