VANCOUVER, BRITISH COLUMBIA / November 4th, 2015 - Naturally Splendid Enterprises Ltd. (the Company) (FRANKFURT:50N) ($NSP:CA) ($NSPDF) is pleased to announce that it signed a definitive share purchase agreement with Chi Hemp Industries Inc. ("CHII") and the shareholders of CHII (the "CHII Shareholders") whereby Naturally Splendid has agreed to acquire all of the issued and outstanding shares of CHII (the "CHII Shares").
As described in an earlier news release, CHII is an online hemp company, based in Victoria, British Columbia, Canada. Their existing warehousing operation in Victoria, BC that distributes hemp products including seeds, oil and protein, will be replaced by Naturally Splendid's 7,000 square foot facility in Burnaby, BC.
Under the terms of the definitive agreement, the CHII Shareholders will sell the CHII Shares to Naturally Splendid and, in consideration of which, Naturally Splendid will issue CAD $75,000 of common shares of Naturally Splendid to the CHII Shareholders and pay CAD $75,000 (the "Cash Payment") to the CHII Shareholders. The Cash Payment will be made in three separate tranches: $25,000 within three months of closing, $25,000 within six months of closing and $25,000 within nine months of closing.
CHII has sold over one million pounds of hemp products since 1998. In fiscal year 2014/2015, CHII generated approximately CAD $300,000 in sales as well as positive earnings. The additional infrastructure and support available from Naturally Splendid creates the opportunity to build upon this revenue base.
On closing of the transaction, the CHII Shareholders, being Marco Pimentel and Agnieszka Wojdyla, will enter into a one year consulting agreement with Naturally Splendid. Their responsibilities will include the development and growth of CHII and associated websites, as well as optimizing revenue on Naturally Splendid's online business. Further, the CHII Shareholders will receive a 12% gross sales commission on any lines of business that are directly benefited from their services.
Naturally Splendid V.P, Bryan Carson states, “Since the announcement of CHII, we have identified multiple opportunities in the retail hemp food sector. We will continue to grow our existing retail lines and pursue other areas of expansion for our retail divisions. The CHII team will be instrumental in assisting Naturally Splendid achieve these goals and we are excited to have them play a major role in our growth strategy moving forward.”
Closing of the transaction is subject to acceptance by the TSX Venture Exchange.
Naturally Splendid announces that it has granted 395,000 stock options to officers, directors, employees and consultants of the Company. The options granted to officers or directors expire 5 years from the date of grant and the options granted to employees and consultants expire 2 years from the date of grant. Each stock option will allow the holder to purchase a common share of the Company at an exercise price of $0.31.
About Naturally Splendid Enterprises Ltd.
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. 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) Natera® brand of retail hemp superfood products currently distributed throughout North America; (2) PawsitiveFX® brand of pet care products; (3) BCI Division of plant-derived bulk ingredients including patent-pending HempOmega®; and (4) hemp-based cannabinoid nutraceuticals. The Company's advanced technologies, industry expertise, and strategic partners allow for the creation of customized solutions with a consistent focus on quality and sustainability.
For more information please e-mail email@example.com or call 604-673-9573
On Behalf of the Board of Directors
J. Craig Goodwin
Naturally Splendid Enterprises Ltd.
(NSP – TSX Venture; NSPDF – OTCQB; 50N Frankfurt)
2435 Beta Avenue
Burnaby, BC, V5C 5N1
Phone: (604) 570-0902
Fax: (604) 570-0934
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, the Company's ability to compete with large food and beverage companies; sales of any potential products developed will be profitable; 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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