Naturally Splendid (TSXV:NSP) announced that it has acquired all of the issued and outstanding shares (the “CHII Shares”) of Chi Hemp Industries Inc.
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 securities purchase agreement, the CHII Shareholders sold the CHII Shares to Naturally Splendid and, in consideration of which, Naturally Splendid issued 319,148 common shares to the CHII Shareholders and has agreed to 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.