VANCOUVER, British Columbia, April 25, 2018 (GLOBE NEWSWIRE) -- Naturally Splendid Enterprises Ltd. (“Naturally Splendid” or “NSE”) (TSXV:NSP) (OTC:NSPDF) (Frankfurt:50N) is pleased to announce the acquisition of Absorbent Concepts Inc. (“ACI”), an organic hemp processor located in Abbotsford, B.C.
Naturally Splendid CEO Mr. Douglas Mason states, “The acquisition of ACI represents a major milestone for NSE creating a critical link in becoming a truly vertically integrated, industrial hemp biotech and consumer products company. In addition to capturing more value chain margin with our existing industrial hemp lines, the addition of the expertise within ACI strengthens our Dealer License application and provides significant resources as we continue on the path to add a cannabinoid extraction facility.”
As stated in a previous news release dated February 6th, 2018, the regulatory purpose for a Dealer License is to enable legal possession of regulated substances such as cannabidiol (CBD) for the purposes of formulating, manufacturing, distributing and import/export.
Absorbent Concepts Inc. (doing business as ACI Foods) is a science-based, industrial hemp seed processing business located in Abbotsford, BC. Listed as the only strictly organic hemp seed processor in North America, ACI is a significant producer of hulled seed, hemp seed oil and high percentage protein powder, among a long list of in-development nutritional products and processes. Although ACI has specialized in processing organic hemp products, operations will be expanded to accommodate the ability to provide a full range of conventional hemp products.
In business since November 2013, ACI was conceived by Pete Scales, an entrepreneur, inventor/R&D specialist, applied scientist, lecturer and long time believer in the power and many gifts of hemp, including full plant utilization, which in turn includes cannabinoid extraction. In addition to a wealth of hemp processing knowledge and experience, the ACI team brings to NSE a substantial body of technical expertise in cannabinoid extraction, nutritional product development, laboratory analysis, as well as long-standing contractual relationships with farmers. These relationships will be leveraged to forge secure supply agreements for organic and conventional industrial hemp for the traditional seed harvest, and also for new opportunities in the CBD cultivation pursuant to the anticipated Cannabis Act being revised by the Canadian Federal Government later this year. In fiscal 2017, ACI recorded total revenues of $1,080,869 (unaudited) and a loss of $119,714 (unaudited). In ACI’s first quarter, total revenues were $156,670 (unaudited) which resulted in a loss of $114,644 (unaudited).
According to an article published by Hempster on April 16th, 2018, “Hemp is a much richer source of CBD than marijuana, and it makes economic sense to extract CBD from this abundant crop. Currently, Canadian farmers are forced to destroy the leaves and flowers of their hemp plants. But this will all change when the Cannabis Act comes into effect, likely in the late summer or fall of 2018. Once enacted, hemp farmers will be able to sell their crops to licensed producers for CBD extraction.”
Canadian Hemp Trade Alliance President and Naturally Splendid Director Russell Crawford states, “As holders of a Dealers License, Naturally Splendid will be positioned to leverage the upcoming whole plant utilization regulations. ACI’s relationship with farmers is a great catalyst in securing acreage for CBD production.”
The acquisition of ACI by Naturally Splendid is pursuant to the terms of the share purchase agreement among ACI, Pete Scales and Naturally Splendid. Naturally Splendid acquired all of the issued and outstanding shares of ACI in consideration of repaying and/or assuming certain bank loans of ACI that total $640,018.
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 and non-psychoactive cannabinoid compounds in a broad spectrum of applications.
Naturally Splendid currently has four innovative divisions:
(1) BIOTECHNOLOGY – Focused on three major platforms:
(1) Proprietary HempOmega™ encapsulation
(2) Extraction and formulation with Cannabidiol (CBD)
(3) Hemp and plant-based proteins.
(2) CONSUMER PRODUCTS -
· NATERA® - brand of retail hemp and superfood products distributed throughout North America, Asia and Europe.
· Prosnack Natural Foods Inc. (Elevate Me™) - lifestyle brand of healthy meal replacement products distributed throughout North America.
· Chi Hemp Industries Incorporated (CHII) - e-commerce platform for natural and organic hemp products.
· PawsitiveFX® - topical pet care products.
· NATERA®CBD - retail hemp-based cannabinoid nutraceutical and cosmeceutical products distributed in Asia.
· NATERA®Skincare - brand of retail hemp based cosmeceutical products.
(3) NATERA® Ingredients - bulk ingredients including HempOmega™.
(4) Co-Packaging/Toll-Processing - packaging for house-brands (NATERA® and CHII) and third-party partners.
For more information e-mail firstname.lastname@example.org or call Investor
Relations at 604-673-9573.
On Behalf of the Board of Directors
Mr. Douglas Mason
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
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; and the risk that any of the potential applications 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.
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