Naturally Splendid Enterprises Ltd. (“Naturally Splendid”
or “the Company”) (TSX-V:NSP) (OTCQB:NSPDF)
(Frankfurt:50N) is pleased to announce that Cannabis Compliance
Inc. has been retained to prepare the submission for the Company to
become a Licensed Dealer of cannabis extracts under the Canadian
regulatory regime. Becoming a Licensed Dealer allows the Company to
pursue a number of activities related to cannabis and the
extraction, formulation and distribution of cannabinoids such as
cannabidiol (“CBD”).
Becoming a Licensed Dealer would allow Naturally
Splendid to expand Canadian operations and revenue streams to
include CBD as well as other cannabinoids, as it relates to
extraction, product development, manufacturing and marketing of
cannabinoid fortified products. According to the Prime Minister’s
office, regulatory laws in Canada pertaining to the extraction of
CBD from industrial hemp are anticipated to be amended in the
summer of 2018. Becoming a Licensed Dealer positions Naturally
Splendid to be a supplier of CBD and CBD fortified products as well
as the ability to perform a number of additional services as
identified below each in accordance with the Canadian regulatory
regime.
The regulatory purpose for a Licensed Dealer is
to enable legal possession of controlled substances such as CBD for
the following purposes:
1) Manufacturing2) Packaging3) Preparation of
R&D Formulations for future manufacturing4) Resale and
distribution to other licensees, including pharmacies5)
Importing and exporting for global sales6) Laboratory
testing7) Contract activities for any of the above
activities
From the R&D and manufacturing perspective,
Licensed Dealers are permitted to prepare formulation from cannabis
whether that be from hemp or marijuana. On the other hand, Licensed
Producers (“LPs”), who are the growers of medical marijuana, are
limited to formulations with only carrier oils. LPs cannot
add additives, e.g. flavour, stabilizer or any other ingredient
that would be required to manufacture or alter the cannabis product
in the form of an edible, Natural Health Products (NHPs),
neutraceutical or pharmaceutical products. This is the role of the
Licensed Dealer, thus creating business opportunities not available
to LPs.
Naturally Splendid CEO Mr. Douglas Mason states,
“Retaining Cannabis Compliance to prepare and submit our Dealer
License application is a significant move strategically for the
Company. A Dealer’s License allows Naturally Splendid to continue
to evolve our business, and to execute our strategic plan in
preparation for the upcoming amendments to the Canadian MMJ and
Industrial hemp regulations anticipated in the summer of 2018. This
also allows the Company to position itself as growing global trends
towards CBD have become more acceptable, including approval by the
World Anti-Doping Association (WADA), that now accepts CBD as an
approved ingredient. 2018 will be a pivotal point for Canada and
Naturally Splendid as CBD continues to gain acceptance and legal
regulation in more than 25 countries around the world. Naturally
Splendid intends to be at the forefront of that opportunity
utilizing our IP; formulating and processing expertise; and
distribution through our existing and developing distribution
channels globally in jurisdictions that allow for CBD and CBD
fortified products.” Additionally, a Licensed Dealer application is
generally processed much quicker than a license for a Licensed
Producer. We anticipate the process to obtain License Dealer status
to take approximately four months, which is significantly quicker
than the time it takes to obtain a License Producer license.
Cannabis Compliance representative and CFO Mr. Sid Hathiraman
states, “We are pleased to work with Naturally Splendid on their
application for a Dealers License. Research and Development will be
a key differentiator in the cannabis industry and securing a Dealer
License is an important step in this direction." About Cannabis
Compliance Inc. For over a decade, Cannabis Compliance
Inc. (“CCI”) has offered risk mitigation, due diligence and
regulatory compliance for commercial cannabis producers and
resellers around the world. Their focus is in the Global
market, and they provide their clients with trusted and
comprehensive solutions. CCI has extensive
expertise in regulatory compliance, cultivation/horticulture,
security designs/tender, facility designs/build-outs, quality
assurance programs, Import & Export, staff recruitment and
financial planning. They have provided services to several Licensed
Producers as well as ‘industry companies’, resulting in the
successful granting of licenses.
As reported in a previous news release:In an article from
WholeFoods Magazine in 2018 Sean Murphy, Founder, Hemp Business
Journal, offered his opinions on where hemp is heading in the
coming year. Hemp Business Journal estimates the hemp industry will
grow to $1.8 billion in sales by 2020, led by hemp food, body care
and CBD-based products. The data demonstrates that the hemp
industry is growing quickly at 22% 5-year CAGR and being led by
food and body care products.
This is a big year for hemp-derived CBD,
especially in Canada. The country is on its way to legalizing CBD
nationwide in 2018. Some expect sales of this product that don’t
get you high will reach $3 billion in the next five years. Canada
has proposed changes to hemp regulations allowing for the
extraction of CBD, limiting to 10 ppm the amount of psychoactive
THC they can contain.
- The Hemp Business Journal estimated that the CBD market will
grow to a $2.1 billion market in consumer sales by 2020 with $450
million of those sales coming from hemp-based sources. That's a
700% increase from 2016.
- In 2015, the market for consumer sales of hemp-derived CBD
products was $90 million, plus another $112 million in
marijuana-derived CBD products which were sold through dispensaries
– bringing a total CBD market to $202 million last year.
- The hemp CBD market has reached an estimated retail value of
$130 million in the United States alone, according to a 2016 market
estimate by Vote Hemp and the Hemp Business Journal. A spokesman
for Vote Hemp also estimated there are likely 50-100 hemp
cannabidiol brands, along with hundreds more growers and processors
that focus on hemp-based CBD.
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 and non-psychoactive cannabinoid compounds in a broad spectrum
of applications.
Naturally Splendid currently has four innovative
divisions:
(1) BIOTECHNOLOGY – Focused on three
major platforms:
(1) Proprietary HempOmega™
encapsulation
(2) Extraction and formulation
with Cannabidiol (CBD)
(3) Hemp and plant-based
proteins.
- POS-BPC Facility - a 12,000-square-foot production facility
leased and operated by POS BPC Manufacturing Inc., a company
jointly owned by NSE (51%) and POS Holdings (49%), offers
commercial-scale custom processing solutions for functional foods
and natural health.
(2) CONSUMER PRODUCTS -
- NATERA® - brand of retail hemp and superfood products
distributed throughout North America, Asia and Europe.
- Prosnack Natural Foods Inc. (Elevate Me™) - lifestyle brand of
healthy meal replacement products distributed throughout North
America.
- Chi Hemp Industries Incorporated (CHII) - e-commerce platform
for natural and organic hemp products.
- PawsitiveFX® - topical pet care products.
- NATERA®CBD - retail hemp-based cannabinoid nutraceutical and
cosmeceutical products distributed in Asia.
- NATERA®Skincare - brand of retail hemp based cosmeceutical
products.
(3) NATERA® Ingredients - bulk ingredients
including HempOmega™.
(4) Co-Packaging/Toll-Processing - packaging for
house-brands (NATERA® and CHII) and third-party partners.
For more information e-mail info@naturallysplendid.com or call
Investor Relations at 604-673-9573
On Behalf of the Board of Directors
Mr. Doug MasonCEO, 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) 465-1128E-mail:
info@naturallysplendid.comWebsite: 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
become a Licensed Dealer, 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 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.
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