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Naturally Splendid (TSXV: NSP) signed a definitive agreement to acquire a comprehensive packaging system

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Naturally Splendid Enterprises has signed a definitive agreement to acquire a comprehensive packaging system, which continues the company’s strategy of becoming more vertically integrated.

Additional Information:

Company: Naturally Splendid Enterprises
Website: http://wwwe.naturallysplendid.com
Stock Symbol: TSXV: NSP
Date Published: Jan 25, 2017
Transcript: Available

Video Transcript:

I’m Samantha Deutscher for Investmentpitch Media

Naturally Splendid Enterprises has signed a definitive agreement to acquire a comprehensive packaging system, which continues the company’s strategy of becoming more vertically integrated.

Naturally Splendid made a cash payment of $56,698, issued 289,855 shares, and will assume Eat Real Snack Food Canada’s future monthly lease payments of $9,765 per month until May 2022.

At the end of the lease payments, the equipment, which originally cost Eat Real Snack Food Canada more than $2 million, will be 100% owned by Naturally Splendid.

In addition, Eat Real has entered into a three agreement to commit to a guaranteed monthly minimum of $14,500 in packaging for their line of snacks.

Ammar Jeet Singh, Eat Real President, stated: "We are so pleased with the opportunity to work with Naturally Splendid. This transaction allows ERSF to focus on expanding our international presence. By focusing on international sales, we believe there is an opportunity to drive additional ERSF packaging business to Naturally Splendid".

Naturally Splendid is a multifaceted biotechnology 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 and proprietary intellectual property focused on the commercial uses of industrial hemp and non-psychoactive cannabinoid compounds in a broad spectrum of applications.

Dave Eto, Naturally Splendid’s CEO, added: "This opportunity will compliment our internal packaging needs for hemp seed and protein business for the NATERA and CHII brands and it also provides capacity for co-packaging opportunities with other BC businesses. In my past role as President of the BC Food Processors Association (BCFPA), which has over 300 members, it was made abundantly clear to me that there is currently a serious shortage of co-packing capacity in BC".

The shares are trading at $0.32 and with 74.1 million shares currently outstanding, the company is capitalized at $23.7 million.

For more information, please visit www.naturallysplendid.com contact investor relations at 604-673-9573 or email info@naturallysplendid.com.

I’m Samantha Deutscher for Investmentpitch Media