VANCOUVER, British Columbia, Feb. 14, 2019 (GLOBE NEWSWIRE) -- NATURALLY SPLENDID ENTERPRISES LTD. (“Naturally Splendid” or “NSE”) (TSX-V: NSP )(OTCQB: NSPDF)(FRANKFURT: 50N ) is pleased to announce that it proposes to acquire certain cannabinoid extraction equipment with a value of $1,025,000 CDN, (the “Extraction Equipment”) from Wahupta Ventures Inc. (“Wahupta”) by issuing a total of 5,540,541 common shares of Naturally Splendid.
To date, Wahupta has completed three financing tranches totaling $500,000 CDN under the previously announced Cooperation Agreement (see news release dated October 9, 2018).The acquisition of the Extraction Equipment, represents the final tranche of the renegotiated terms of the Cooperation Agreement.
Wahupta has significant expertise in the field of cannabinoid extraction through its wholly owned manufacturing subsidiary, Curran Technologies Inc. (CTI), which has designed a complete extraction facility and laboratory for Naturally Splendid. CTI is an industrial manufacturer of high quality, closed-loop extraction equipment, based out of Victoria, British Columbia, Canada. CTI’s principal manufactured extraction system, the high-efficiency Extract Pro series, is touted for its durability, scalability, and productivity.
As part of the final tranche of the Cooperation Agreement, Naturally Splendid will receive four extraction units from CTI including, three (3) Extract Pro RIV extraction unit and one (1) Extract Pro RIII extraction unit, as well as all required accessories to be a fully functional cannabinoid extraction facility (the “Extraction Facility”). The scalable solutions offered by CTI will be optimized to facilitate the processing of a range of input biomass materials, into a variety of finished cannabinoid states whether that be isolate or full spectrum oils. Additionally, Wahupta will be designing and installing a functional laboratory to augment the services and equipment provided to Naturally Splendid. Manufacturing of the Extraction Equipment has commenced, with final testing scheduled to be completed in a strategic timeframe in order for Naturally Splendid to receive the appropriate licensing from Health Canada. The Extraction Facility will be completed in NSE’s Pitt Meadows manufacturing facility in BC, Canada. Wahupta CEO Mr. Warren Cudney states, “I know the industry is all about bigger is better. And that is a reasonable assumption to a point. However, we have developed an extraction strategy with Naturally Splendid that utilizes multiple, scalable batch units. The fact is cannabinoid extraction in Canada is still relatively new. The extraction technologies are advanced and commercially viable. It’s the preparation of input biomass material that is still being optimized throughout the industry. Smaller batch units allow for multiple test runs to optimize outputs while minimizing loss of valuable biomass for testing. It is our experience that while the extraction technology is advanced, the farming, cultivating, harvesting and preparing of biomass is still very much an evolving science. With these units, we can begin to work with farmers determining how to best harvest in a manner that allows for maximum yields from various biomass forms.”
Naturally Splendid V.P. of Operations & Co-Founder Bryan Carson states, “At NSE we understand how to scale up from concept to retail-ready product. Product development is done in incremental steps. Therefore, the flexibility that multiple small batch extraction systems affords us will create a competitive advantage when it comes to product development. This methodology allows for more testing of products through an R&D strategy, creating a much more efficient Product Development process.
Additionally, NSE and Wahupta will work towards finalizing another Cooperation Agreement that will see the Companies leverage their combined expertise and services in the cannabinoid extraction markets. Naturally Splendid CEO Mr. Douglas Mason reports, “This is a historic day for NSE as we begin the process of building out our cannabinoid extraction facility. Naturally Splendid Extracts is continuing its application process for a standard processing license for a cannabinoid extraction facility under the Cannabis Act (Canada) and the construction of the facility is a critical step in the process of securing the required licensing from Health Canada. We are pleased to advance our subsidiary, Naturally Splendid Extraction to this stage and look forward to the multitude of opportunities working with Wahupta.”
Over the past twelve months, Naturally Splendid has begun to position itself to be a significant player in the evolving CBD markets by aggressively expanding its existing distribution reach through its non-CBD retail lines such as Natera™ Hemp Foods, Natera Sport ™, Natera FX™, Elevate Me™ and Pawsitive FX™, as well as through NSE’s many Contract Manufacturing Clients that have products being sold at most major retailers across Canada. Currently, Naturally Splendid retail lines are formulated and marketed without CBD fortification. However, once regulations allow for CBD edibles and beverages, NSE will have a built-in distribution network throughout North America.
CBD regulations in Canada are expected to be amended in 2019 to allow for CBD infused edibles, nutraceuticals and beverages. Health Canada will be holding sessions in the spring of 2019 to develop the proposed regulations pertaining to cannabinoid processing and sale.
Naturally Splendid President and Founder Mr. Craig Goodwin states, “We have evolved our strategic business plan from that of solely retail products, to a much more vertically integrated business model that currently includes our own manufacturing for hemp seeds, protein & oil, as well as our nutritional bar manufacturing facility. The addition of a cannabinoid extraction facility for CBD (cannabidiol) further enhances the services and products we can offer our clients. We are looking forward to processing the Wahupta biomass and to building a strong brand of CBD based products co-operatively with Wahupta, utilizing our various manufacturing facilities.” Closing of the acquisition of the Extraction Equipment and issuance of the shares is subject to and acceptance of the TSX Venture Exchange.
ABOUT WAHUPTA VENTURES INC.:
Please visit www.wahupta.com for more information.
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; 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.
