VANCOUVER, BRITISH COLUMBIA–(Marketwired – Jan. 25, 2017) – Naturally Splendid (TSXV:NSP) is pleased to announce that it has signed an Assignment Agreement with Eat Real Snack Food Canada Ltd. (“ERSF”) whereby Naturally Splendid will assume all lease payments to acquire certain packaging equipment owned by ERSF (the “Packaging Equipment”).
In consideration of Naturally Splendid’s assumption of the lease, Naturally Splendid will make all future monthly lease payments of $9,765 per month until May 2022 after which the Packaging Equipment will be 100% owned by Naturally Splendid, Naturally Splendid has paid $56,698 to ERSF and issued 289,855 common shares of Naturally Splendid to ERSF. ERSF initially purchased the packaging line for over $2,000,000 CDN in 2014.
In conjunction with the assignment agreement, Naturally Splendid has entered into a three year service agreement whereby Naturally Splendid will package for ERSF.
The parties have entered into a service agreement whereby Naturally Splendid will provide packaging and storage services to ERSF for a period of three years and ERSF will commit to a guaranteed minimum of $14,500 per month of packaging services during the term.
The acquisition of this comprehensive packaging system continues Naturally Splendid’s strategy of becoming more vertically integrated. Naturally Splendid CEO Dave Eto states. “We are excited to work with ERSF and will to continue to develop our business relationship through new and creative products. 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”.
Mr. Eto adds, “While co-packing is a key component of our current business model, it is not the major focus for the majority of our business growth. The implementation of the packaging line will assist the growth of revenue for Naturally Splendid. I’m most excited about the opportunities to engage packaging customers with an expanded roster of ingredients including HempOmega®. This will create new opportunities for their products, develop more product applications and showcase to the industry how HempOmega® will add value to their offerings. We are currently in advanced discussions with a number of potential co-packing clients and partners that market their products domestically and for export. This presents an opportunity to expand our own marketing reach dramatically, through our newly acquired packaging division“.
The packaging equipment includes the following:
- Fully Automated Standalone Zipper Bag Manufacturing and Packaging System
- Fully Automated Jar Manufacturing System
- Fully Automated Jar Packaging Line
- Fully Automated Dry Food Packaging System
- Automated Seasoning Packaging System
- Automated Powder Packaging System
- Box Making Line
- Overwrapping System
About Eat Real Snack Foods
Eat Real Snack Foods (ERSF)( www.eatrealworld.ca ) is a Canadian company that markets a healthy line of snacks. Their fruit and nut bars are based on three very simple concepts that are; Taste; Nutrition; and Real Ingredients. The desire of ERSF is to create a product that is an enjoyable healthy alternative to standard snack and confectionery items and to distinguish themselves from other brands that offer less nutritious products. The products are made from real, natural ingredients with no added artificial flavourings, colourings or preservatives. ERSF President Mr. Ammar Jeet Singh states, “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“.
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 six innovative divisions: (1) Natera® brand of retail hemp superfood products currently distributed throughout North America and Asia; (2) Chi Hemp Industries Incorporated (Chii) is selling natural and organic hemp products through e-commerce (3) PawsitiveFX® brand of pet care products; (4) Simpli Plant-Based Ingredients Division of plant-derived bulk ingredients including patent-pending HempOmega®; (5) The 12,000-square-foot POS / BPC Facility – which is managed for Naturally Splendid by POS Bio-Sciences – is positioned to offer commercial-scale custom processing solutions for biological materials, such as functional foods and natural health ingredients to a wide range of clients (6) hemp-based cannabinoid nutraceuticals. Naturally Splendid’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 e-mail email@example.com or call Investor Relations at 604-673-9573
On Behalf of the Board of Directors
Mr. Dave Eto, CEO, Director
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 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 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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Naturally Splendid Enterprises Ltd.
Office: (604) 465-0548
Fax: (604) 465-1128