NATURALLY SPLENDID ENTERPRISES LTD. (“Naturally Splendid”
or “NSE”) (TSX-V: NSP)(OTCQB: NSPDF)(FRANKFURT:50N) is
pleased to provide a 2018 year in review, which included the
achievement of several major milestones that lay down the
foundation for growth in 2019 and beyond.
2018 Year in Review
Strengthened Management
Team
With growth of Naturally Splendid’s business a
focal point in 2018, Naturally Splendid strengthened management by
adding capital market veterans and seasoned consumer brand
executives as CEO and CFO. Mr. Douglas L. Mason joined as CEO
to provide corporate guidance and develop the corporate strategy of
the Company, and Mr. Sead Hamzagic joined as CFO to implement
management and control procedures of all financial and accounting
activities. Both individuals lend valuable depth and
leadership to the management team.
In addition to fortifying the management team, Naturally
Splendid invited key individuals who bring their own expertise to
join the Advisory Board and assist the Company in moving forward
with its goals. Our Advisors include:
Mr. Kevin Flanagan as Lead Food Scientist, with
over 35 years of experience across a broad range of food
categories, assisting the Product Development Team and maximizing
facility logistics; Mr. Scott Walker with his vast regulatory
experience in the medical marijuana and hemp sectors leveraging
over 30 years of experience in business start-ups, corporate
management, government relations, and business development; Dr.
Lorne Swetlikoff, a leader in the field of naturopathic medicine
who has been in practice for 23 years and has extensive experience
in comprehensive patient care and naturopathic medicine has taken a
key role in the development of the Company’s NATERA FX™ line of
products; Dr. Amin Janmohamed is a researcher, clinical program
developer and drug formulator in the area of severe opioid use
disorder. He is currently a researcher at CHEOS (Center for Health
Evaluation and Outcome Sciences), under Providence Research
Institute/Faculty of Medicine UBC is taking the lead role of
Qualified Person in Charge under the Company’s application for a
Processing License; Dr. Love graduated as a Doctor of Chiropractic
completing his Masters in Science in Human Nutrition and Functional
Medicine. His clients include Olympic level athletes, professional
athletes from the NHL, CFL and NFL and professional golfers playing
on the PGA and European Tours along with Web.com, Australian,
Asian, Japanese and Canadian Tours.
Dr. Love will leverage his expertise in sports
related treatment to develop a comprehensive line of practitioner
grade sports-oriented products; Mr. Bob Mehr, President and Founder
of Pure Integrative Pharmacy, providing special attention directed
to the roll out of NATERA FX™ into naturopathic clinics, functional
medicine practices and pharmacies in Canada.
Growth of Core Business
In 2018, an early focal point was to rebrand
Prosnack Natural Foods Inc., a wholly owned subsidiary, to “The Bar
Makers”. This repositioned Prosnack as a lifestyle and
healthy bar manufacturer that provides R&D, co-packing,
branding and custom formulation to customers seeking leading edge
protein and snack bars. In 2018, the Company allocated
essential investment capital to acquire additional manufacturing
equipment, upgrade its facility to SQF 2 certification and build an
R&D test kitchen and, in turn, expanding its production
capabilities for The Bar Makers. Due to these initiatives,
the 100% owned Elevate Me brand as well as private label clients
can be found in over 3,000 retail stores. During the year,
Naturally Splendid entered into agreements with several National
customers to produce private label bars and bites for major food
retailers and food services companies in Canada. Further,
through a national food service customer, Naturally Splendid has
begun to manufacture and ship Prosnack produced products to both
the USA and Canada nationally. The Company expects these orders to
continue and grow significantly throughout the year.
As part of Naturally Splendid’s goal to become a
vertically integrated, industrial hemp, consumer products company,
it purchased Absorbent Concepts Inc., a science-based, industrial
organic hemp processing business in the second quarter of 2018. The
facility has been rebranded “Naturally Splendid Hemp Processors
Inc.” (“NHSP”) and is North America’s only 100% organic hemp
processing facility. This acquisition delivers the potential for
capturing more value chain margin with the Company’s existing
industrial hemp lines.
Also, the expertise obtained from the NSHP
acquisition strengthens Naturally Splendid’s Processing License
application. In addition to establishing a cannabinoid extraction
strategy under a Processing License, the Company identified third
party manufacturers with state-of-the art facilities to produce its
proprietary hemp oil, HempOmega®, and proprietary Hemp Protein
Isolate. Securing third party manufacturers eliminated the need for
its interest in the POS BPC Manufacturing Corp. and Naturally
Splendid divested its 51% majority ownership for a profit of over
$2M CDN, allowing for funds to be directed towards expanding the
production capability at its Pitt Meadows operations.
Naturally Splendid is a leader in hemp-derived
products with many retail products under the NATERA™, Elevate Me™,
CHII™, and Pawsitive FX™ banners. In 2018, in an industry first,
Naturally Splendid launched its NATERA FX™ line of hemp-based,
practitioner specific, therapeutic healthcare products. The NATERA
FX™ product line currently offers 10 professionally formulated
SKU’s that are marketed directly to doctors and pharmacies through
a country-wide network of distributors and an e-commerce website at
www.naterafx.com. As regulations allow, Naturally Splendid
intends to add cannabidiol (CBD) and other cannabinoids into future
formulations.
Naturally Splendid also made great strides in
commercializing the technology of its HempOmega®, a soluble powder
created from microencapsulated hemp seed oil and delivering
essential omega 3 and 6 fortification. In 2018, the Company
and Crop Infrastructure Inc. entered into an LOI to include
HempOmega® in its CannaDrink, a functional beverage line, and in an
exclusive sales agreement, Sipp Industries Inc. began using the
soluble powder in its Major Hemp Brown Ale currently for sale in
Colorado and Illinois with expansion plans into Indiana, California
and Texas.
In the latter half of 2018, the Company secured
national distribution for its natural pet care/food line, Pawsitive
FX™, with a Canadian distributor. The hemp based PawsitiveFX™
brand consists of topicals and nutrition products. Naturally
Splendid continues to work with pet product manufacturers
developing additional pet topicals and edibles that will
incorporate a combination of hemp oil, hemp protein and is working
closely with pet product manufacturers to include HempOmega® into
multiple formulations.
2019 Outlook
Processing License
Recognizing the significant market
opportunities, the Company began the process of obtaining a
Processing License under the Cannabis Act. Upon successful
completion of a Processing License, the Company will be permitted
to extract and manufacture multiple CBD and THC fortified products
and provide a variety of new opportunities to the Company. In
a cooperation agreement with Wahupta Ventures Inc. (“Wahupta”),
Wahupta has committed to invest $1,500,000 (as part of a $2,000,000
investment in the Company) to be used to complete the build out of
an extraction facility located next to the Naturally Splendid
offices in Pitt Meadows, BC. Wahupta has significant
expertise in the field of cannabinoid extraction. Naturally
Splendid will work alongside this leading manufacturer of
extraction equipment to develop cost effective, high throughput
extraction systems. As well, Wahupta has secured substantial
amounts of biomass for extraction purposes.
Brand Building and bolstering
revenues
Naturally Splendid is building a solid
foundation of intellectual property and proprietary products such
as HempOmega® and Hemp Protein Isolate, as well as processing
capacity, packaging and distribution channels. The Company believes
that this unique combination positions Naturally Splendid with
differentiating products, thus separating itself from most
other hemp companies. The Company emphasizes there are
significant strategic advantages for maximizing margins when
combining revenue from Company branded products, augmented by
significant revenue from Contract Manufacturing Clients.
New Products
In 2019, Naturally Splendid has several exciting
new product launches planned that are geared towards health and
well-being for the body and mind. Our NATERA Sport™ line of
products will feature hemp oil protein and plant-based emulsions
that are specifically formulated for healthy, active lifestyles
offering beverages, snacks, bites, bars and lifestyle products;
additional pet products including a nutrient powerhouse formula for
horses; grain free granola to feed the mind, and an extensive line
of anti-aging products for men and women using innovative
extraction technologies and focusing on delivering premium products
to help improve everyday lifestyle.
The opportunities to market hemp-based products
continue to expand globally. Naturally Splendid has had previous
success internationally, and intends to capitalize on any new
opportunities, and as regulations permit, continue to positively
evolve in many jurisdictions across the globe. The Company’s
combination of intellectual properties, retail products, production
capacity and distribution should all assist in the expansion of
business in 2019.
About Naturally Splendid Enterprises
Ltd.
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. Naturally Splendid is building an expanding
portfolio of patents (issued and pending) and proprietary
intellectual property focused on the commercial uses of industrial
hemp cannabinoid compounds in a broad spectrum of applications.
For more information e-mail info@naturallysplendid.com or call
Investor Relations at 604-673-9573
On Behalf of the Board of DirectorsMr. Douglas Mason CEO,
Director
Contact Information
Naturally Splendid Enterprises Ltd.(NSP – TSX Venture; NSPDF –
OTCQB; 50N Frankfurt)#108-19100 Airport Way Pitt Meadows, BC, V3Y
0E2 Office: (604) 465-0548 Fax:
(604) 465-1128
E-mail: info@naturallysplendid.comWebsite:
www.naturallysplendid.com
Forward-Looking Statements
Information set forth in this news release
contains forward-looking statements that are based on assumptions
as of the date of this news release. These statements reflect
management's current estimates, beliefs, intentions and
expectations. They are not guarantees of future performance.
Naturally Splendid cautions that all forward looking statements are
inherently uncertain and that actual performance may be affected by
a number of material factors, many of which are beyond Naturally
Splendid's control including, Naturally Splendid's ability to
compete with large food and beverage companies; sales of any
potential products developed will be profitable; sales of shelled
hemp seed will continue at existing rates or increase; the ability
to complete the sales of all bulk hemp seed purchase orders; and
the risk that any of the potential applications, including its
application to obtain a Standard Processing License, may not
receive all required regulatory or legal approval. Accordingly,
actual and future events, conditions and results may differ
materially from the estimates, beliefs, intentions and expectations
expressed or implied in the forward-looking information. Except as
required under applicable securities legislation, Naturally
Splendid undertakes no obligation to publicly update or revise
forward-looking information.
NEITHER TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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