The function of a license agreement can be described in very simple terms.When a party wants to amend the agreement or end the relationship entirely, the nuances of the agreement can make the process of filing an amended agreement tricky. In the case of Naturally Splendid Enterprises Ltd (NSP:CA) and Full Spectrum Laboratories Ltd. (FSL) , both companies entered into a license agreement that allowed Naturally Splendid to use technology developed by Full Spectrum. In return, Naturally Splendid would pay Full Spectrum royalties, and abide by various terms set by the agreement. The restated and amended license agreement between these two companies has been accepted by a major stock exchange.
Naturally Splendid announced recently that the company has closed the restated and amended license agreement with Full Spectrum.The restated and amended license agreement between Naturally Splendid Enterprises Ltd., Naturally Splendid USA Ltd., a wholly owned subsidiary of the company, and Full Spectrum has been accepted for filing by The TSX Venture Exchange. Full Spectrum Laboratories, an independent botanical testing laboratory, is controlled by former director of Naturally Splendid, Charles R. Brink.
Under the accepted restated and amended license agreement, Naturally Splendid owns all of Full Spectrum’s omega technologies, including HempOmega™ and H2Omega. Beginning in November 2017, $1.6-million in minimum annual royalty payments will be removed. Furthermore, Naturally Splendid’s desire to switch from an exclusive to nonexclusive license on specific analytic testing standard operating procedures will, ultimately, end its nonexclusive license of Full Spectrum’s bioreactor technology.
"We anticipate that the outright acquisition of the omega technologies will greatly contribute to our corporate strategy of becoming a leading producer of value-added nutritional ingredient solutions,” said Craig Goodwin, CEO of Naturally Splendid. “Secured ownership will allow us to explore out-licensing opportunities for HempOmega™ and other applications of the omega technologies."
Turning to Hemp for the Next Generation of Pharmaceuticals
A biotechnology company developing, commercializing, producing, selling, and licensing hemp-derived nutrient-dense Omega foods, nutritional food enhancers, and related products, Naturally Splendid is looking to expand their portfolio of patents and proprietary intellectual properties through this restated and amended license agreement. Naturally Splendid’s four divisions, Natera©, PawsitiveFX™, BCI Division that includes HempOmega™, and pharmaceuticals that are hemp-based cannabinoids, currently focus on the commercial use of industrial hemp and non-psychoactive cannabinoid compounds.
"We are continuing to promote HempOmega™ as sustainable omega ingredient for the human, pet, livestock, and cosmetic industries,” said Bryan Carson, Naturally Splendid's VP of Operations. In initial studies, HempOmega™ demonstrated higher sustainability and bioavailability than unformulated omega oils. Our researchers will also begin to look at other plant oils that may be successfully encapsulated with this technology to create additional bioactive ingredients."
With the acceptance of this amended agreement, both companies can get back to the business of pharmaceutical research and testing.
To learn more about Naturally Splendid, visit www.naturallysplendid.com.
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