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Naturally Splendid (TSXV:NS,FWB:50N,OTCQB:NSPDF) has signed a letter of intent with Laguna Blends to enter into a research, development and manufacturing agreement regarding mutually beneficial business opportunities in the hemp food products area.
Laguna and NSP anticipate finalizing the Definitive Agreement by the end of May 2015.
As quoted in the press release:
Pursuant to the proposed terms of the Definitive Agreement, NSP will develop a new hemp protein formulation enhanced with HempOmega(TM) and flavour for Laguna (“Laguna HempOmega(TM) Infused Protein Products”) and Laguna will contribute its expertise as a marketing and sales company in the hemp food products market and the purchase, sale and distribution of the Laguna HempOmega(TM) Infused Protein Products.
The LOI also provides that Laguna will place an initial Purchase Order of $100,000 for the Laguna HempOmega(TM) Infused Protein Products. Laguna anticipates ordering, in its sole discretion, a further $1,500,000 of the HempOmega(TM) Infused Protein Products in the first year of the Definitive Agreement and $4,500,000 of the HempOmega(TM) Infused Hemp Protein Products in the second year of the Definitive Agreement (“Additional Purchase Orders”). Following entry into the Definitive Agreement, there is no assurance that Laguna will complete any or all of the Additional Purchase Orders.
Under the Agreement, NSP will grant to Laguna, (i) a license to place the HempOmega(TM) trade-mark on the Laguna HempOmega(TM) Infused Protein Products, as specified on a white label/private label agreement, (ii) a worldwide exclusive (dependent on Laguna achieving certain minimum sales targets) on these specific formulations (iv) and the right and license to Laguna to sell the Laguna HempOmega(TM) Infused Protein Products. Laguna must meet minimum sales targets (to be agreed upon in the Agreement) in order to retain exclusive rights to the product.
Click here to read the Naturally Splendid (TSXV:NS,FWB:50N,OTCQB:NSPDF) press release
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