2018 Year in Review
Strengthened Management Team
With growth of Naturally Splendid’s business a focal point in 2018, Naturally Splendid strengthened management by adding capital market veterans and seasoned consumer brand executives as CEO and CFO. Mr. Douglas L. Mason joined as CEO to provide corporate guidance and develop the corporate strategy of the Company, and Mr. Sead Hamzagic joined as CFO to implement management and control procedures of all financial and accounting activities. Both individuals lend valuable depth and leadership to the management team.
In addition to fortifying the management team, Naturally Splendid invited key individuals who bring their own expertise to join the Advisory Board and assist the Company in moving forward with its goals.
Our Advisors include:
Mr. Kevin Flanagan as Lead Food Scientist, with over 35 years of experience across a broad range of food categories, assisting the Product Development Team and maximizing facility logistics;
Mr. Scott Walker with his vast regulatory experience in the medical marijuana and hemp sectors leveraging over 30 years of experience in business start-ups, corporate management, government relations, and business development;
Dr. Lorne Swetlikoff, a leader in the field of naturopathic medicine who has been in practice for 23 years and has extensive experience in comprehensive patient care and naturopathic medicine has taken a key role in the development of the Company’s NATERA FX™ line of products;
Dr. Amin Janmohamed is a researcher, clinical program developer and drug formulator in the area of severe opioid use disorder. He is currently a researcher at CHEOS (Center for Health Evaluation and Outcome Sciences), under Providence Research Institute/Faculty of Medicine UBC is taking the lead role of Qualified Person in Charge under the Company’s application for a Processing License;
Dr. Love graduated as a Doctor of Chiropractic completing his Masters in Science in Human Nutrition and Functional Medicine. His clients include Olympic level athletes, professional athletes from the NHL, CFL and NFL and professional golfers playing on the PGA and European Tours along with Web.com, Australian, Asian, Japanese and Canadian Tours.
Dr. Love will leverage his expertise in sports related treatment to develop a comprehensive line of practitioner grade sports-oriented products;
Mr. Bob Mehr, President and Founder of Pure Integrative Pharmacy, providing special attention directed to the roll out of NATERA FX™ into naturopathic clinics, functional medicine practices and pharmacies in Canada.
Growth of Core Business
In 2018, an early focal point was to rebrand Prosnack Natural Foods Inc., a wholly owned subsidiary, to “The Bar Makers”. This repositioned Prosnack as a lifestyle and healthy bar manufacturer that provides R&D, co-packing, branding and custom formulation to customers seeking leading edge protein and snack bars. In 2018, the Company allocated essential investment capital to acquire additional manufacturing equipment, upgrade its facility to SQF 2 certification and build an R&D test kitchen and, in turn, expanding its production capabilities for The Bar Makers. Due to these initiatives, the 100% owned Elevate Me brand as well as private label clients can be found in over 3,000 retail stores. During the year, Naturally Splendid entered into agreements with several National customers to produce private label bars and bites for major food retailers and food services companies in Canada. Further, through a national food service customer, Naturally Splendid has begun to manufacture and ship Prosnack produced products to both the USA and Canada nationally. The Company expects these orders to continue and grow significantly throughout the year.
As part of Naturally Splendid’s goal to become a vertically integrated, industrial hemp, consumer products company, it purchased Absorbent Concepts Inc., a science-based, industrial organic hemp processing business in the second quarter of 2018. The facility has been rebranded “Naturally Splendid Hemp Processors Inc.” (“NHSP”) and is North America’s only 100% organic hemp processing facility. This acquisition delivers the potential for capturing more value chain margin with the Company’s existing industrial hemp lines.
Also, the expertise obtained from the NSHP acquisition strengthens Naturally Splendid’s Processing License application. In addition to establishing a cannabinoid extraction strategy under a Processing License, the Company identified third party manufacturers with state-of-the art facilities to produce its proprietary hemp oil, HempOmega®, and proprietary Hemp Protein Isolate. Securing third party manufacturers eliminated the need for its interest in the POS BPC Manufacturing Corp. and Naturally Splendid divested its 51% majority ownership for a profit of over $2M CDN, allowing for funds to be directed towards expanding the production capability at its Pitt Meadows operations.
Naturally Splendid is a leader in hemp-derived products with many retail products under the NATERA™, Elevate Me™, CHII™, and Pawsitive FX™ banners. In 2018, in an industry first, Naturally Splendid launched its NATERA FX™ line of hemp-based, practitioner specific, therapeutic healthcare products. The NATERA FX™ product line currently offers 10 professionally formulated SKU’s that are marketed directly to doctors and pharmacies through a country-wide network of distributors and an e-commerce website at www.naterafx.com. As regulations allow, Naturally Splendid intends to add cannabidiol (CBD) and other cannabinoids into future formulations.
Naturally Splendid also made great strides in commercializing the technology of its HempOmega®, a soluble powder created from microencapsulated hemp seed oil and delivering essential omega 3 and 6 fortification. In 2018, the Company and Crop Infrastructure Inc. entered into an LOI to include HempOmega® in its CannaDrink, a functional beverage line, and in an exclusive sales agreement, Sipp Industries Inc. began using the soluble powder in its Major Hemp Brown Ale currently for sale in Colorado and Illinois with expansion plans into Indiana, California and Texas.
In the latter half of 2018, the Company secured national distribution for its natural pet care/food line, Pawsitive FX™, with a Canadian distributor. The hemp based PawsitiveFX™ brand consists of topicals and nutrition products. Naturally Splendid continues to work with pet product manufacturers developing additional pet topicals and edibles that will incorporate a combination of hemp oil, hemp protein and is working closely with pet product manufacturers to include HempOmega® into multiple formulations.
Recognizing the significant market opportunities, the Company began the process of obtaining a Processing License under the Cannabis Act. Upon successful completion of a Processing License, the Company will be permitted to extract and manufacture multiple CBD and THC fortified products and provide a variety of new opportunities to the Company. In a cooperation agreement with Wahupta Ventures Inc. (“Wahupta”), Wahupta has committed to invest $1,500,000 (as part of a $2,000,000 investment in the Company) to be used to complete the build out of an extraction facility located next to the Naturally Splendid offices in Pitt Meadows, BC. Wahupta has significant expertise in the field of cannabinoid extraction. Naturally Splendid will work alongside this leading manufacturer of extraction equipment to develop cost effective, high throughput extraction systems. As well, Wahupta has secured substantial amounts of biomass for extraction purposes.
Brand Building and bolstering revenues
Naturally Splendid is building a solid foundation of intellectual property and proprietary products such as HempOmega® and Hemp Protein Isolate, as well as processing capacity, packaging and distribution channels. The Company believes that this unique combination positions Naturally Splendid with differentiating products, thus separating itself from most other hemp companies. The Company emphasizes there are significant strategic advantages for maximizing margins when combining revenue from Company branded products, augmented by significant revenue from Contract Manufacturing Clients.
In 2019, Naturally Splendid has several exciting new product launches planned that are geared towards health and well-being for the body and mind. Our NATERA Sport™ line of products will feature hemp oil protein and plant-based emulsions that are specifically formulated for healthy, active lifestyles offering beverages, snacks, bites, bars and lifestyle products; additional pet products including a nutrient powerhouse formula for horses; grain free granola to feed the mind, and an extensive line of anti-aging products for men and women using innovative extraction technologies and focusing on delivering premium products to help improve everyday lifestyle.
The opportunities to market hemp-based products continue to expand globally. Naturally Splendid has had previous success internationally, and intends to capitalize on any new opportunities, and as regulations permit, continue to positively evolve in many jurisdictions across the globe. The Company’s combination of intellectual properties, retail products, production capacity and distribution should all assist in the expansion of business in 2019.
About Naturally Splendid Enterprises Ltd.
Naturally Splendid is a biotechnology and consumer products 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 cannabinoid compounds in a broad spectrum of applications.
For more information e-mail email@example.com or call Investor Relations at 604-673-9573
On Behalf of the Board of Directors
Mr. Douglas Mason
Naturally Splendid Enterprises Ltd.
(NSP – TSX Venture; NSPDF – OTCQB; 50N Frankfurt)
#108-19100 Airport Way
Pitt Meadows, BC, V3Y 0E2
Office: (604) 465-0548
Fax: (604) 465-1128
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, 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, including its application to obtain a Standard Processing License, 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.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.