Vertically Integrated Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) Offers Investors Smart Exposure to a Market Projected for Strong Growth
The global market for cannabis edibles is set to become one of the fastest-moving market segments in the world.
As legalization of cannabis edibles becomes more widespread, this market certainly appears poised for significant growth.
In fact, industry expert Technavio projects that the global cannabis-infused edible products market will grow at an annual CAGR (compound annual growth rate) of 25% through 2022.[i]
And Arcview Market Research reports that spending on edibles could reach as high as $4.1 billion in the U.S. and Canada by 2022.[ii]
With such significant growth projected – and the legalization of edibles coming to Canada in October – investors are closely monitoring this market for the best way to play this unstoppable trend.
One company – a vertically-integrated Canadian company with over a decade of experience in the hemp-based healthy foods market – right now stands alone as the best way to play this trend for maximum upside potential.
That company is Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N), which was established over 10 years ago with a vision to provide natural, nutritious and safe products.
Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) offers its potential partners “one-stop shopping” in the rapidly-growing market for cannabis-infused edibles; hemp food experts; cannabinoid extraction expertise; a highly certified food manufacturing facility; and significant distribution channels.
And the Company offers investors exposure to a number of markets poised for significant growth in the months ahead, including:
- Industrial hemp products
- CBD extraction
- Healthy foods
Over the last several years, Naturally Splendid has evolved from a consumer packaged goods company to a more comprehensive vertically integrated operation.
This vertical integration allows Naturally Splendid to move quickly as opportunities in the booming cannabis sativa space continue to evolve.
As Canada – and the rest of the world – moves closer to the inevitable legalization of edibles, a number of up-and-coming companies will emerge in the hopes of establishing market share.
Naturally Splendid Enterprises has a long history of successfully manufacturing great food products…a history of extensive research & development in the cannabis and hemp-based product fields…and long, successful relationships via its distribution network that will help its products find a home on store shelves. And the company recently launched a nutritious bar line that expanded to 1,000 points of sale 90 days after initial launch!
Legalization of CBD-infused foods will present a significant “post-prohibition” profit opportunity for investors.
Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) has the rare advantage of a 10-year head start in the space which is virtually unmatched in the industry. Let’s face it…when the starting pistol is fired on cannabis edibles, that head start could translate into significant upside potential for the company’s shareholders.
Naturally Splendid Enterprises Has a Strong, 10-Year History of Hemp Product Sales
Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) – the first hemp foods Company to go public in Canada – The first retail line the Company ever brought to market was a line of Canadian grown hemp products launched in Vancouver, British Columbia back in 2010.
Over the years, Naturally Splendid has taken advantage of the economic potential of hemp by incorporating this amazing resource into an extensive range of retail ready, value added products for multiple distribution channels. These products are marketed through multiple brands as well as through the Company’s contract manufacturing clients and via a network of brokers and distributors.
At present, Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) remains North America’s only 100% organic hemp processor and has a diverse line of industrial hemp products both conventional and organic including hemp seed, hemp protein, hemp oil, hemp bars, supplements, topicals, nutraceuticals, skincare and cosmeceuticals.
Transition to Vertical Integration Creates New Opportunities for Naturally Splendid
Although Naturally Splendid remains focused on hemp, the Company has now expanded its expertise, manufacturing and licensing within a comprehensive Vertically Integrated Business Strategy spanning:
- Product Development
- Contract Manufacturing for Third Parties
- Retail Product Lines
- Distribution Network
Definitive Agreement for Acquisition of AlternaMedz Provides “Confirmation of Readiness” Designation From Health Canada for Cannabis Processing Centre – CBD Extraction
Naturally Splendid has entered into a definitive agreement dated July 5, 2019 to acquire all of the issued and outstanding shares of AlternaMedz Canada Holdings Inc.(“AlternaMedz”), a company located in Ontario, Canada with a late stage application in the Confirmation of Readiness stage before Health Canada to obtain a standard cultivation, processing and federal sales-medical license under the Cannabis Act (Canada).
This Vertical Integration allows Naturally Splendid to move quickly as opportunities in the booming cannabis sativa space continue to evolve.
As part of its growth initiatives, Naturally Splendid has accelerated its strategy to obtain a Processor’s License under Health Canada. AlternaMedz has obtained the stage defined by Health Canada as, ‘Confirmation of Readiness’. AlternaMedz has leased five (5) acres in Ontario, including a 26,000 square foot, free standing building that will be home to a state of the art Cannabinoid Extraction and Processing Centre. AlternaMedz has applied for the following licenses under the Cannabis Act (Canada):
– Standard Processing License. This license allows for the processing of cannabis or hemp for the purpose of extracting cannabinoids. Initially, Naturally Splendid intends to focus on the extraction of the cannabinoid CBD from hemp.
– Standard Cultivation License. As part of the cultivation license, AlternaMedz can use start up materials from Jamaica and additionally have declared 130 Clones and 20 Seeds of a variety of cannabis strains, that could be used to create unique hybrid strains in the future.
– License for Sale for Medical Purposes. This will provide Naturally Splendid the ability to sell directly to medically approved patients CBD oils, dried cannabis, fresh cannabis, cannabis plants or seeds. This strategically aligns with our online patient/practitioner portal to order our future CBD-infused products. Patients can be medically approved by a medical practitioner or nurse practitioner
In addition, Naturally Splendid Enterprises has grown to over 25,000 square feet of food processing and manufacturing, attaining the designation of SQF Level 2 (Safe Quality Food). As part of its Vertical Integration, the Company is focused on two distinctly separate yet complimentary revenue streams.
The diverse combination of Company Branded Products and Contract Manufacturing & Private Label revenue streams truly offers Naturally Splendid the “best of both worlds.”
Revenue Stream #1: Company Branded Products
Through its Company Branded Products, Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) is able to react to opportunities in the market rapidly, launching new products in the ever-evolving retail space and capturing more margin in the process.
Naturally Splendid’s retail brands include…
NATERA™ Hemp Foods is a retail division of Naturally Splendid specializing in the finest quality hemp and plant-based food products distributed in North America and Asia.
NATERA SPORT™ is a high performance supplement lineup focusing on all kinds of athletes and includes Keto bars and Sport bites.
NATERA FX™ is a practitioner-focused line of health and wellness products…where lifestyle medicine begins.
CHII™ is a line of bulk and retail hemp food products marketed via e-commerce…established in 1998.
ELEVATE ME™ is focused on healthy meal replacement products that include energy bars and on-the-go oatmeals.
NATERA™ CBD is a division focused on cannabinoid based products and offers formulations in the nutraceutical and topical markets.
PawsitiveFX™ is a topical health care for strong, happy paws and snouts. The Company plans to extend this product line to pet nutrition and future cannabis-infused products.
TIMERS™ is a division focused on transforming supplements of high quality hemp nutrition for the overall health of your horse.
In addition to these established hemp brands, Naturally Splendid has also developed several cannabinoid extracts, formulations and products including oils, distillates, isolate, topicals, supplements, nutraceuticals, skincare and cosmeceuticals.
Revenue Stream #2: Contract
Manufacturing & Private Label
Naturally Splendid’s Contract Manufacturing & Private Label revenue stream provides access to additional distribution channels accessed through SMEs as well as established retail brands.
Though this revenue stream typically offers lower margins up front, it does not incur the costs associated with developing and growing a retail line such as product development, sales & marketing, listing fees and distribution.
In 2017, Naturally Splendid constructed a 10,000 square foot GMP (Good Manufacturing Practice) level food processing facility in the Greater Vancouver region.
The Company also commissioned over $1.2 million worth of automated packaging equipment to further increase production capacity and expand contract manufacturing services.
And in October 2017, Naturally Splendid acquired The Bar Makers (Prosnack Natural Foods Inc.), a nutritional and snack bar company with revenue split between company branded bars and contract manufacturing clients.
The Bar Makers works side-by-side with its clients to develop and manufacture leading-edge, market-ready products and offers services for:
- Snack bars & Bites
- Filled Bars & Bites
- Protein Bars
- Fruit & Nut bars
- Keto & Paleo friendly bars
- High Fiber bars
- Collagen Bars
- Baked Bars
- Cereals & Granolas
- & much more!
The Company currently manufactures and private labels for many leading brands that are sold nationally in Whole Foods, Save on Foods, Safeway, Loblaws, Metro, Longos, 7 Eleven, & many other recognized chains across Canada.
Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) Offers Smart Exposure to a Number of Growing Markets
With the legalization of edibles rapidly approaching, Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) is in an extremely favorable position compared to others in the space.
That’s because of the company’s more than 10 years of experience manufacturing top-quality food products…extensive research & development experience in the cannabis and hemp-based product fields…while simultaneously developing a global distribution network.
This vertically integrated company – with two distinct revenue streams – offers investors the high upside potential of the coming edibles “boom” plus the stability and experience of a mature company with a track record of proven success in the more traditional nutritional food and supplement markets.
When considering the potential for valuation growth with a company like Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N), investors should consider that companies like Tilray, Inc. (Nasdaq: TLRY) – market cap $4.857 billion and Aurora Cannabis (NYSE: ACB) – market cap of $8.99 billion – have shown that companies in this space can deliver significant growth.
At less than 15 cents a share, Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N) could offer investors the chance to buy the next cannabis growth story at a shockingly low price.
It’s also worth noting that just recently – in February 2019 – Tilray, Inc. acquired Manitoba Harvest – a Winnipeg-based hemp food company – for C$419 million.
This acquisition not only demonstrates the willingness of a large company such as Tilray to enter the hemp space in a big way…it also speaks to a potential undervaluation for Naturally Splendid Enterprises Ltd. (OTCQB: NSPDF); (TSX.V: NSP); (Frankfurt: 50N), whose current market cap is just over $12 million.
In fact, Naturally Splendid, when combining its Company Branded Products with the distribution reach of their Contract Manufacturing Clients, has more than double the number of distribution points as Manitoba Harvest…yet that company sold for a whopping $419 million.
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