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Naturally Splendid Enterprises Ltd. (TSXV:NSP) announced it has entered into a non-binding letter of intent with POS Holdings Corp. setting forth the proposed purchase by Naturally Splendid of 51 percent of the issued and outstanding shares of POS BPC Manufacturing Corp.
As quoted in the press release:
POS BPC Manufacturing Corp. operates a 12,000 square foot production facility (the “BPC Facility”). The BPC Facility contains ~60,000L of tankage, a fractional distillation system, evaporation equipment, spray drying equipment, a ring dryer and various other pieces of complementary & auxiliary equipment.
The BPC Facility is capable of processing a variety of products including the suite of plant-based omega technologies such as HempOmega(TM), licensed by FSL to Naturally Splendid. Additionally, the BPC Facility is designed to produce plant-based extracts, tinctures and dry ingredients for a variety of clients. The ability for Naturally Splendid to control its own processing is a significant strategic development. Additionally, the BPC Facility has the potential to generate revenue from clients who require toll processing specific to this type of facility.
Under the proposed terms of the Definitive Agreement, POS will sell the Purchased Shares to Naturally Splendid and, in consideration of which, Naturally Splendid will pay CAD $1,750,000 (the “Cash Payment”) to POS and issue CAD $250,000 of common shares of Naturally Splendid (the “Consideration Shares”) to POS at a price equal to the five day average closing price of the common shares of Naturally Splendid prior to the date of the letter of intent. The parties have agreed that the Consideration Shares will be escrowed for a period of 12 months.
After closing of the transaction, each of POS and Naturally Splendid will have an equal number of directors on POS BPC Manufacturing Corp, and POS will continue to be the operator of the BPC Facility.
Click here to read the Naturally Splendid Enterprises Ltd. (TSXV:NSP) press release
Click here to see the Naturally Splendid Enterprises Ltd. (TSXV:NSP) profile.