Naturally Splendid Enterprises Ltd. (“Naturally Splendid” or “NSE”) (TSXV:NSP, OTC:NSPDF, Frankfurt:50N) is pleased to announce that it has entered into a definitive agreement dated July 5, 2019 (the “Definitive Agreement”) to acquire all of the issued and outstanding shares of AlternaMedz Canada Holdings Inc.(“AlternaMedz”), a company located in Markham, Ontario with a late stage application in the Confirmation of Readiness stage before Health Canada to obtain a standard cultivation, processing and federal sales-medical license under the Cannabis Act (Canada).

The combination of licenses within AlternaMedz further solidifies the Company’s position in the emerging edible CBD (cannabidiol) opportunity.


Benefits of the Transaction

  •  Expansion into CBD Infused Products. The AlternaMedz acquisition will position Naturally Splendid in the rapidly expanding CBD market opportunities whether that be crude oils, distillates; or isolates. Additionally, within the AlternaMedz application, are the necessary licenses for the manufacturing of cannabis infused edibles, which in our case, will focus on a variety of CBD-infused products.
  • Creates a Vertically Integrated Edible Products Company. Due to Naturally Splendid’s extensive experience in the production, distribution and sale of hemp-based products, the acquisition will create a vertically integrated entity for the production and ultimate sale of edible products. Naturally Splendid has already received interest from a multitude of clients seeking a Contract Manufacturer to produce safe, efficacious CBD edibles under their brands, including inquiries from existing clients who Naturally Splendid produces various products for at the Pitt Meadows facility.
  • Accelerates Licensing Process. AlternaMedz is a late stage applicant at the ‘Confirmation of Readiness’ stage. AlternaMedz has leased five (5) acres in Innisfil, Ontario, including a 26,000 square foot, free standing building that will be home to a state of the art Cannabinoid Extraction and Processing Centre. The proposed acquisition will expedite Naturally Splendid’s goal to service the edibles market as a vertically integrated company.
  • AlternaMedz Has a Seasoned Entrepreneurial Team. AlternaMedz brings a seasoned team of successful entrepreneurs lead by Mr. Roy Khan. Mr. Khan has had several successful ventures including co-founder of AIM PowerGen Corporation, a renewable energy developer that has built over $2.2 billion worth of projects, and is a founder of RAWMEDZ Inc., a company establishing itself as Jamaica’s premier cultivator and distributor of high-grade organic cannabis. Their flag ship cultivation site in partnership with Jamaican based College of Agriculture, Science and Education was recently awarded its final approval by the Cannabis Licensing Authority of Jamaica. Other key senior personnel from the AlternaMedz team will be joining the Naturally Splendid team to oversee the buildout and operations of the Ontario cannabinoid extraction and processing facility.

Naturally Splendid President Mr. Craig Goodwin states, “Positioning Naturally Splendid as a food manufacturer in addition to hemp processor and extractor of cannabinoids, is assurance that products will be manufactured not only to exacting emerging edible CBD regulations, but also to the extensive specifications required when producing safe consumable products as a food manufacturer. We have a unique and advantageous combination of; a decade of experience producing and distributing a variety of hemp foods; embedded cannabinoid extraction expertise with over a million dollars of extraction equipment being prepared for deployment; and maybe most importantly, an established reputation as a premium food manufacturer”.

Mr. Roy Khan states, “The decision to partner up with Naturally Splendid was simple. Their knowledge and practical experience in the edible space via their decade of experience in hemp-based product lines, will provide a seamless entry into the cannabis infused market. By leveraging the processing, packaging, logistics and experience of the team, we plan on being not just an early mover in the infused edibles product market, but a dominate player”.

About AlternaMedz

AlternaMedz has obtained the stage defined by Health Canada as, ‘Confirmation of Readiness’. AlternaMedz has leased five (5) acres in Innisfil, Ontario, including a 26,000 square foot, free standing building that will be home to a state of the art Cannabinoid Extraction and Processing Centre. AlternaMedz has applied for the following licenses under the Cannabis Act (Canada):

  • Standard Processing License. This license allows for the processing of cannabis or hemp for the purpose of extracting cannabinoids. Initially, Naturally Splendid intends to focus on the extraction of the cannabinoid CBD from hemp.
  • Standard Cultivation License. As part of the cultivation license, AlternaMedz can use start up materials from Jamaica and additionally have declared 130 Clones and 20 Seeds of a variety of cannabis strains, that could be used to create unique hybrid strains in the future.
  • License for Sale for Medical Purposes. This will provide Naturally Splendid the ability to sell directly to medically approved patients CBD oils, dried cannabis, fresh cannabis, cannabis plants or seeds. This strategically aligns with our online patient/practitioner portal to order our future CBD-infused products. Patients can be medically approved by a medical practitioner or nurse practitioner

Naturally Splendid will begin the process of preparing the property as the necessary steps to final licensing require. Under Health Canada Regulations, it is necessary to have a functional operation as per the submitted application for final licensing approval. It is important to recognize that subsequent to the final buildout of the facility, AlternaMedz will receive licensing whereas under regulations revised on May 8th by Health Canada, all new applicants for licences to cultivate cannabis, process cannabis, or sell cannabis for medical purposes are now required to have a fully built site that meets all the requirements of the Cannabis Regulations at the time of their initial application, as well as satisfying other application criteria. The new regulations present a far riskier endeavour than having a Confirmation of Readiness in hand which is Health Canada’s ‘provisional approval’ prior to final buildout.

Terms of Definitive Agreement with AlternaMedz

Under the terms of the Definitive Agreement, Naturally Splendid will acquire all of the issued and outstanding shares of AlternaMedz for the issuance of 20,000,000 units (“Units”) of Naturally Splendid on closing. Each Unit will consist of one share of Naturally Splendid and one share purchase warrant (a “Warrant”), with each Warrant entitling the holder to purchase an additional share at a price of $0.21 per share for a period of two years from the date of issue.

The shares to be issued to each shareholder of AlternaMedz in proportion to their respective shareholding of AlternaMedz. In additional to any restrictions on resale under securities laws, the shares issuable to the shareholders of AlternaMedz will also be subject to the following voluntary lockup: (i) 10% released on closing, (ii) 30% released within six months of closing, (iii) an additional 30% released within twelve months of closing, and (iv) a final 30% released within eighteen months of closing.

No shareholder of AlternaMedz will become an insider of Naturally Splendid as a result of this transaction. Further, no insiders of Naturally Splendid own any shares of AlternaMedz.

Naturally Splendid has pay a finder up to 3% of the transaction value in shares of Naturally Splendid.

Completion of the transaction with AlternaMedz is subject to the completion of a non-brokered private placement financing, and receipt of any required regulatory approvals.

Non-Brokered Private Placement Financing

Naturally Splendid also announces that it proposes to complete a non-brokered private placement financing of up to 17,857,142 Units (each a “Unit”) at a price of $0.14 per Unit for gross proceeds of up to $2,500,000 (the “Offering”).

Each Unit in the non-brokered private placement consists of one common share of Naturally Splendid and one-half of one common share purchase warrant (each a “Warrant”), with each whole Warrant entitling the holder to purchase one additional common share at $0.21 per share for a period of two years from the date of the issue. Naturally Splendid has the right to accelerate the expiry date of the Warrants if, at any time, the average closing price of Naturally Splendid’s common shares is equal to or greater than $0.35 for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 10 days after Naturally Splendid issues a news release announcing that it has elected to exercise this acceleration right.

Naturally Splendid may pay finders a fee in cash and/or share purchase warrants in connection with the Offering.

The proceeds of the Offering will be used for funding the ongoing expansion of AlternaMedz existing facilities, to increase manufacturing capacity and general working capital purposes.

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 info@naturallysplendid.com or call Investor Relations at 604-673-9573

On Behalf of the Board of Directors

Mr. Douglas Mason

CEO, Director

Contact Information

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

E-mail: info@naturallysplendid.com

Website: www.naturallysplendid.com

Forward-Looking Statements

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; 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.

Click here to connect with Naturally Splendid (TSXV:NSP) for an Investor Presentation.

Source: www.thenewswire.com

Multi-state cannabis leader highlights events, partnerships, and activities to coincide with Juneteenth holiday

Trulieve Cannabis Corp . (CSE: TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States and its dispensary group Solevo Wellness, today announced the sponsorship of expungement clinics in Pittsburgh, Pennsylvania as well as additional initiatives celebrating the Juneteenth holiday.

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A summertime series of expungement events, employee volunteerism, documentary filmmaking, fundraising and more demonstrate the importance of commitment to reform and restorative justice to build an equitable, inclusive cannabis industry

Today, on the 50 th anniversary of when America started its longest war—the War on Drugs— Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or “the Company”), a vertically integrated multistate operator and the number one U.S. wholesaler of branded cannabis products, announced the launch of a summer-long social justice campaign supported by its Sunnyside retail brand and flagship cannabis brand, Cresco . Through community expungement events, employee volunteerism, a film documenting the impact of unjust prosecution, and financial contributions from the Company and our third-party vendors, the “Summer of Social Justice” campaign aims to influence reform to help shape a future cannabis industry with limitless opportunities for everyone. The campaign will amplify the ongoing restorative justice, community business incubator and education and workforce development programming facilitated by the Company’s established SEED (Social Equity & Education Development) initiative.

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Florida’s legal cannabis program has gained plenty of investor attention as the potential for this segment of the US cannabis market continues to expand.

The US cannabis industry is largely fragmented because the plant remains illegal at the federal level. Despite that obstacle, several states across the country have implemented medical and recreational cannabis legislation allowing for cultivation, processing, commercial sale and consumer use.

While this legislation differs greatly from state to state, one state’s medical cannabis industry has seen unprecedented growth: Florida.

 

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The coastal state’s journey to cannabis legalization has been a challenging one. In 2016, over 70 percent of Floridians voted for a constitutional amendment to allow the use of cannabis for medical purposes.

However, in the 2017 legislation that created the state’s legal medical cannabis framework, then-Governor Rick Scott banned smoking medical cannabis. It wasn’t until March 2019 that Ron DeSantis, the current governor of Florida, lifted the ban on smokable marijuana.

In the face of those challenges, the Sunshine State has developed one of the most attractive medical cannabis markets in the country. In fact, Florida’s medical marijuana space is one of the fastest growing in the country.

Read on to learn more about the investing opportunities in Florida’s legal cannabis space and the top marijuana stocks to look out for.

Florida medical cannabis: High-growth market

Florida’s large population — the third biggest in the US — is a factor in the attractiveness of its cannabis market. The state is also the fourth largest economy in the US with a gross domestic product of just over US$1 billion in 2020.

A 2020 report from Arcview Market Research and BDS Analytics shows the US legal cannabis industry is expected to grow by 18.2 percent between 2019 and 2025 to reach US$33.9 billion. Florida ranks among the jurisdictions that will contribute the most to that growth.

“The Total Available Market, or TAM, is one of the most critical factors for any industry,” states Dustin Robinson, founding partner of Mr. Cannabis Law, in an article written for Green Entrepreneur. “Florida’s marijuana industry happens to have one of the strongest TAMs in the world.”

As of a June 2021 update from Florida Health’s Office of Medical Marijuana Use (OMMU), the state had 569,450 qualified medical marijuana patients and 2,542 qualified physicians.

Florida’s patient count is a small percentage of its population of 21 million, but it has been steadily growing since the drug was legalized in the state in 2016. In fact, the patient figure has more than doubled in the past two years.

According to Robinson, there are almost 300 retail locations in Florida, with another 500 locations expected by the end of 2022.

Beacon Securities analyst Russell Stanley has said Florida boasts a healthy list of addressable medical conditions that can be treated with cannabis, unlike the medical marijuana programs in other states.

“Some other states have had trouble expanding their programs, in part because it’s been very difficult for patients to get access to product,” Stanley told the Investing News Network. “Other states have had restrictions on which healthcare practitioners can recommend it and what they can recommend it for.”

 

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Florida cannabis market: High barriers to entry

The 2017 Florida medical marijuana law established a cap on the number of medical marijuana dispensaries and required that each center be vertically integrated — they all had to manage their own operations, from cannabis cultivation and processing to distribution and sales.

The cap on the number of dispensaries expired in April 2020. While the vertical integration requirement portion of the law underwent a three year court battle, the Supreme Court of Florida recently upheld the legislation, meaning this requirement will continue to shape the Florida cannabis market for years to come.

During a panel discussion, Steve Hawkins, CEO of Horizons ETFs Management (Canada), said he views vertical integration as one of the key benefits for US companies compared to the Canadian cannabis market. Only players that have been able to develop cannabis production, manufacturing and distribution capabilities can compete in the marketplace.

As of March 2021, the state had 22 licensed medical marijuana treatment centers (MMTCs) and five laboratories licensed for third party testing. The low number of licenses currently awarded creates high entry barriers, which is a big plus for the currently operating companies that have already established a strong foothold in the market.

Robinson believes that “the 22 Licensees are in a great position to build multi-billion-dollar companies in Florida’s growing marijuana industry.”

These 22 established licensees will also have an advantage if and when recreational cannabis becomes legal in the state. “In Florida, the medical marijuana license allows the current MMTCs to build out as big of a footprint as possible in preparation for adult use (recreational) legalization,” he said.

Florida cannabis market: Top Florida cannabis stocks

As the legal cannabis industry grows in Florida, some players have begun to stand out in the state.

Florida native Trulieve Cannabis (CSE:TRUL,OTC Pink:TCNNF) holds the lion’s share of the market and has continually been a top-performing stock in the state.

Trulieve opened Florida’s first medical marijuana dispensary back in 2016, and since then it’s grown into a force in the industry, with a current market capitalization of US$5.52 billion.

As of June 4, 2021, Trulieve had 82 dispensing locations in the state, according to data released by the OMMU. In one week’s time it sold more than 76.5 million milligrams of tetrahydrocannabinol (THC) products and 1.6 million milligrams of cannabidiol (CBD) products, in addition to 32,295 ounces of dried flower.

Shortly after smokable marijuana was legalized, Trulieve began selling flower and was the first in the state to do so. Trulieve has also benefited from a vertically integrated structure that includes cannabis cultivation, production and distribution, which is essential since cannabis cannot be moved across states lines just yet.

Surterra Wellness comes in at a distant second place with 39 dispensing locations and sales of over 22.2 million milligrams of THC products and 1.6 million milligrams of CBD products, in addition to 6,911 ounces of dried flower. Surterra is owned by Parallel, one of the largest privately held multi-state cannabis operators (MSOs) in the country.

 

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Parallel recently announced its intentions to go public through a definitive business combination agreement with Ceres Acquisition (NEO:CERE,OTCQX:CERAF), a special purpose acquisition company.

Another big player in the state is Massachusetts-based Curaleaf Holdings (CSE:CURA,OTCQX:CURLF). Though not native to Florida, Curaleaf’s presence in the state’s cannabis business is substantial. Of the MSO’s total 101 dispensaries, 37 are in Florida, putting it in third place behind Trulieve and Surterra.

The vertically integrated company also launched the state’s first medical cannabis tablets in September 2019, followed by the first sublingual tablets in July 2020.

Curaleaf put up impressive revenue numbers for 2020, reporting retail revenue of US$423.2 million compared to US$138.7 million in 2019. The company attributed the 205 percent increase to new store openings in its operating states, including five opened in Florida in 2020.

Liberty Health Sciences, which was acquired by Ayr Wellness (CSE:AYR.A,OTCQX:AYRWF) in February 2021 in all-stock transaction, also has a considerable stake in Florida. According to the OMMU, Liberty currently has 36 dispensing locations in the state.

Ayr Wellness plans to increase that footprint to 42 dispensaries by the end of 2021, and has a target of roughly US$4 million in annual retail revenues per store for 2022. In May 2021, the company announced the launch of its Origyn premium concentrate line in the state. The product line includes wax, crumble, Rick Simpson oil and shatter. Ayr has also begun construction of a 10 acre outdoor cultivation expected to be completed in Q3 2021.

Florida cannabis market: Investor takeaway

As its medical marijuana industry continues to grow, Florida has a lot to offer in terms of investment opportunities. BDS Analytics projects that Florida’s medical cannabis market will hit US$1.5 billion in sales in 2021, up 53 percent over 2020 sales.

The research firms predicts that recreational cannabis could be legal by 2023, which would set Florida on a path to become the third largest US legal cannabis market by 2026. Regardless of whether adult use gets the green light that soon, investors should still consider the Sunshine State as a premier cannabis jurisdiction.

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Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) (“Trulieve” or “the Company”), a leading and top-performing cannabis company based in the United States announced today the opening of a new Florida dispensary, the Company’s 90th nationwide.

The latest dispensary, located in the Florida Keys, supports Trulieve’s goal of ensuring medical cannabis patients across Florida have safe, reliable access to the medications they rely on. The Tavernier dispensary joins the nearby Key West dispensary, as well as several others throughout the Miami area.

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Company to Donate: $30,000 to Assist with Elk Grove Village’s Community Events and Outreach Programs; Additional $15,000 to Go Towards Supporting Alexian Brothers Medical Center’s Foundation, Elk Grove Village Police Drug Education Program and Kenneth Young Youth Center

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