Naturally Splendid Enterprises (TSXV: NSP) (FSE: 50N) (OTCQB: NSPDF) announced the sale of its 51% majority interest in POS BPC Manufacturing Corp.
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The 51% interest in the subsidiary, located in Saskatoon, Saskatchewan, was sold for $3,536,650, having been purchased for $1,971,000 in cash and shares on June 15th, 2015. The company made a gain of $1,565,650 off the transaction.
Doug Mason, CEO, stated: “I am very pleased with the decision to sell our position in the BPC facility. 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. This will permit the Company to pursue a number of activities related to cannabis and the extraction, formulation and distribution of cannabinoids such as cannabidiol (“CBD”). Our goal is to have ownership of our own facility that will focus on the latest extraction and formulation methods by forming strategic alliances and partnerships with companies specializing in extraction technologies. Given the latest advances that have been made over the past years in extraction and formulation methods, the BPC facility did not fit within the strategic plans of the Company.”
Bryan Carson, COO, stated: “In addition to establishing a cannabinoid extraction strategy, we have identified third party manufacturers with state of the art facilities to produce our Hemp emulsion, HempOmega(TM), and Hemp Protein Isolate. Securing third party manufacturers eliminates the need to invest in upgrades at BPC and allows those funds to be directed towards expanding our production capability at our Pitt Meadows operations.”
This is a big year for hemp-derived CBD, especially in Canada, with the country is on its way to legalizing CBD nationwide in 2018. Some expect sales of this product that doesn’t get you high will reach $3 billion in the next five years. The Hemp Business Journal estimated that the CBD market will grow to a $2.1 billion market in consumer sales by 2020 with $450 million of those sales coming from hemp-based sources, a 700% increase from 2016.
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.
For more information please visit the company’s website www.naturallysplendid.com, or contact investor relations at 604-673-9573 or email [email protected].
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