Naturally Splendid Acquires 51 Percent Interest in POS BPC Manufacturing

Naturally Splendid Enterprises Ltd. (TSXV:NSP,OTCMKTS:NSPDF) announced that it has completed that acquisition of 51 percent of the issued shares of POS BPC Manufacturing Corp. in accordance with the terms of a securities purchase agreement.

As quoted in the press release:

In consideration of the BPC shares, Naturally Splendid paid CAD $1,750,000 (the “Cash Payment”) to POS Management and issued 367,647 common shares of Naturally Splendid (the “Consideration Shares”) to POS Management at a deemed price of $0.68 per share. The Consideration Shares will be subject to a restriction of trading for a period of 12 months from the date of issue. Through this acquisition, NSE has the ability to seamlessly coordinate the entire plant-to-product process by utilizing the expertise of POS’ R&D scientists; from sourcing bioactive, plant-based ingredients, to overseeing toll processing, to formulation, and to creating unique custom ingredient solutions, NSE has the unique opportunity of offering their clients the convenience of comprehensive solutions and services.

BPC operates the 12,000 square foot facility (the “BPC Facility”) containing approximately 60,000L of tankage, a fractional distillation system, evaporation equipment, spray drying equipment, a ring dryer and various other pieces of complementary & auxiliary equipment owned by BPC. It is capable of processing a variety of products including the suite of plant-based omega technologies such as HempOmega(R) (www.hempomega.com) that Naturally Splendid has licensed from Full Spectrum Laboratories. Additionally, the BPC Facility is designed to produce plant-based extracts, tinctures and dry ingredients for a variety of clients.

Further, Naturally Splendid, POS and BPC entered into a unanimous shareholders agreement that provides, among other things, equal board representation for each of Naturally Splendid, which will hold 51 Class A shares of BPC, and POS, which will hold 49 Class A Shares of BPC. Dale Kelly, being the President of POS, will serve as Chief Executive Officer of BPC. David Racz, being a director of Naturally Splendid, will be put forward by Naturally Splendid as the initial Chairman of the board of directors, which will require official confirmation by the new Board of Directors of BPC at the first meeting of the Board to be held after the closing of the transaction.

Bryan Carson, co-founder of Naturally Splendid, commented:

This strategic acquisition of the POS BPC facility positions Naturally Splendid to compete in the rapid and aggressively growing food, beverage, cosmetic and pet care ingredients industry

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