Naturally Splendid Signs Letter of Intent For CBD Toll Processing
Vancouver, British Columbia / TheNewswire / April 24, 2019 - Naturally Splendid Enterprises Ltd. ("Naturally Splendid", "NSE" or "the Company") (FRANKFURT:50N) (TSX-V:NSP) (OTC:NSPDF) is pleased to announce that it has entered into a Letter of Intent with Prairie Pure (1159705 BC LTD) ("Prairie Pure"),wherein Naturally Splendid will provide cannabidiol extraction equipment for a toll processing cannabidiol extraction facility in Washington State, and Prairie Pure, through its various divisions, will secure and process industrial hemp for the purpose of extracting cannabidiol (CBD).
Under the terms of the Letter of Intent Prairie Pure, a Canadian entity, will lease the cannabidiol extraction equipment from Naturally Splendid and operate said equipment through Asili World Holdings, LLC ("Asili") and Plant Relief, a 100% owned division of Asili. Plant Relief has 178 acres of industrial hemp under contract (the "Contracted Acreage") for the 2019 harvest, which is expected to commence in August. It is anticipated that the gross amount of biomass, given reasonable growing conditions, has the potential to generate approximately 300,000 pounds of biomass at an anticipated yield of 7% CBD, which in turn may yield up to 21,000 pounds of CBD isolate.
As well, Plant Relief plans to contract with Washington State hemp farmers to process their remaining biomass from the 2018 harvest into a variety of cannabidiol products, including CBD isolate, as well as full spectrum oils.
The terms of the toll processing agreement between the Contracted Acreage and Asili are that the Contracted Acreage will receive 50% of the produced CBD and Asili will retain the remaining 50% of CBD product as their fee for processing the hemp biomass. Asili and NSE will subsequently divide the 50% CBD products retained by Asili, with Asili retaining 70% and NSE receiving 30% of the equivalent value as its lease payment (the "Lease Payment"). The Lease Payment shall be calculated on the net recovered value of Naturally Splendid's 30% portion.
Naturally Splendid Executive Vice President of Operations, Mr. Bryan Carson states,
We are very excited to be putting our CBD extraction units purchased as part of the Wahupta Ventures strategic partnership to immediate use. Our strategic plan remains to be a significant manufacturer of CBD edible products in Canada once regulations evolve to allow for this type of product and upon obtaining the appropriate licensing. As regulations allow, the Company's strategic plan includes producing our own company branded CBD-fortified products as well as extending our contract manufacturing services to our significant roster of contract manufacturing clients to include CBD edibles. The CBD edibles market in the United States in general is more advanced to that in Canada presently, and we felt that it was prudent to monetize the investment we have already made in the extraction units in this way
Naturally Splendid President Mr. Craig Goodwin states,
It should be noted that for the first time in recent history the United States has surpassed Canada for hemp cultivation. Positioning Naturally Splendid in a region of significant hemp cultivation in conjunction with a region in which there are more progressive CBD edibles regulations makes this a natural progression. Additionally, the CBD yields of hemp in the United States are significantly higher than the hemp varieties in Canada, making the processing more cost effective than processing current approved varieties in Canada
For more information about the Company's investment into extraction equipment, see Naturally Splendid's news releases, dated Oct. 9th, 2018, and February 14th, 2019.
Naturally Splendid is a biotechnology and consumer products company that is developing, and we are 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 and non-psychoactive cannabinoid compounds in a broad spectrum of applications.
For more information e-mail email@example.com or call Investor Relations at 604-673-9573
On Behalf of the Board of Directors
Mr. Douglas Mason
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
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; customers will complete on sales contracts; 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.
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.