NATURALLY SPLENDID RECEIVES INVESTMENT COMMITMENT FOR $2,000,000 FROM WAHUPTA VENTURES INC. FOR CANNABINOID EXTRACTION FACILITY
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NATURALLY SPLENDID ENTERPRISES LTD. (TSX-V: NSP)(OTCQB: NSPDF) is pleased to announce that it has entered into a cooperation agreement (the "Cooperation Agreement") with Wahupta Ventures Inc. ("Wahupta") whereby Wahupta has committed to invest up to $2,000,000 (the "Investment"). The proceeds of the Investment will be used to complete the build out of a cannabinoid extraction facility, including a full laboratory at Naturally Splendid's existing manufacturing and distribution facility located in Pitt Meadows, BC (the "Facility").
Through Naturally Splendid's wholly owned subsidiary, Naturally Splendid Extracts Ltd. Naturally Splendid has applied for a Dealer License under the Narcotic Control Regulations (Canada) in order to pursue a number of activities related to cannabis including research & development, product development and processing of cannabinoids. The Investment will allow Naturally Splendid to complete its Facility which will position the Company in a favorable position in the evolving cannabis markets in Canada with new regulations taking effect October 17, 2018. Additionally, cannabis regulations continue to evolve globally and the combination of the appropriate licensing in conjunction with extraction capabilities, will provide multiple new opportunities to the Company.
Wahupta is headquartered in Vancouver Canada. Wahupta's areas of expertise include cannabinoid extraction, hemp farming, research & development as well as product development. Wahupta has aligned itself with First Nations and Indigenous Tribes in both Canada and the United States providing the platform for significant hemp biomass production. Wahupta's land-partnership portfolio currently includes multiple locations in British Columbia, Saskatchewan, Manitoba, and Quebec. Currently this represents access to over 35,000 acres of prime agricultural land. These partnerships represent an innovative, forward-thinking approach to crop-farming. Wahupta's agricultural processes are proven to transition soybean, flax, canola and industrial hemp-based crop farms into high-yielding, high ROI CBD-based hemp farms.
Wahupta has significant expertise in the field of cannabinoid extraction through its wholly owned subsidiary, Curran Technologies Inc. (CTI). CTI currently manufactures a range of cannabinoid extraction equipment that applies new technology to the advancement of the cannabis oil extraction process making them a leading manufacturer of extraction equipment.
Additionally, the combined expertise at CTI and Wahupta continue to evaluate extraction technologies and apply them accordingly to develop cost effective, high throughput extraction systems. Wahupta will be instrumental in designing, manufacturing and installing the cannabinoid extraction system in Naturally Splendid's Pitt Meadows facility. Timing of the completed facility is based, in part, to final licensing approvals from Health Canada.
Additionally, the parties have begun drafting a Supply, Manufacturing and Distribution Agreement that will provide Naturally Splendid access to Wahupta's hemp biomass to meet Naturally Splendid cannabidiol extraction needs as well as provides minimum purchase obligations by Wahupta for cannabidiol (CBD) produced once the Facility is completed and obtains its license. Wahupta intends to private label existing Naturally Splendid products under their own brand as well as distribute CBD fortified products developed by Naturally Splendid once licensing and regulations allow.
Naturally Splendid CEO Mr. Douglas Mason States, "This is a monumental milestone for Naturally Splendid. To find a partner with the combination of capital, cannabinoid extraction expertise, significant hemp biomass as well as their own distribution network is truly extraordinary. We look forward to many years of growth with Wahupta."
Wahupta CEO Warren Cudney states, "We are most excited with finding a partner so strategically aligned as Naturally Splendid. Our combined areas of strength and expertise create significant synergies. Wahupta Ventures currently has over 1000 acres currently in agricultural production across 5 Canadian provinces for 2018. We expect to expand to a landmark 100,000 acres of hemp in 2019 after having met with Indigenous leaders. We believe this relationship will be of significant value to both Wahupta and Naturally Splendid moving forward."
Terms of Cooperation Agreement
Under the terms of the Cooperation Agreement, the Investment will be comprised of the following tranches:
-- 555,556 common shares of Naturally Splendid ( the "First Tranche") at a price of $0.27 per share for total proceeds of $150,000 upon TSXV Exchange approval,
-- an additional 555,556 common shares of Naturally Splendid (the" Second Tranche") at $0.27 per share for total proceeds of CAD $150,000 within 45 days of the date of closing the First Tranche;
-- an additional 740,741 common shares of Naturally Splendid (the "Third Tranche") at $0.27 per share or the Discounted Market Price (as defined by the rules of the TSX Venture Exchange) for total proceeds of CAD $200,000 within 30 days of the date of closing of the Second Tranche; and
-- grant of an option for 5,555,556 common shares of Naturally Splendid (the "Fourth Tranche") at $0.27 per share or the Discounted Market Price (as defined by the rules of the TSX Venture Exchange) for total proceeds of CAD $1,500,000 within 45 days of the date of closing of the Third Tranche.
The proceeds of the Investment will be used to build the Naturally Splendid extraction facility in Pitt Meadows and for working capital purposes. The Investment is subject to the acceptance of the TSX Venture Exchange.