VANCOUVER, British Columbia, Aug. 08, 2019 (GLOBE NEWSWIRE) -- Naturally Splendid Enterprises Ltd. (“Naturally Splendid” or “NSE” or “The Company”) (NSP.V) (NSPDF) (50N.F) further to the Company’s news release of April 24, 2019, NSE is pleased to announce the Letter of Intent with Prairie Pure has now been formalized into a Definitive Agreement (the “Agreement”). Under the terms of the Agreement, a CBD (cannabidiol) Extraction System recently received from Curran Technologies Inc.(“Curran”), has been leased to Prairie Pure in a 1-year lease agreement renewable on a yearly basis.
Under the terms of the Agreement, Prairie Pure, a Canadian entity, will lease the Extraction System from NSE and operate the equipment through Oregon Plant Processing LLC (“Oregon Plant Processing”) and Plant Relief, a 100% owned division of Oregon Plant Processing.
The CBD extraction system is manufactured in Canada by Curran, a wholly owned subsidiary of Wahupta. Curran’s state-of-the-art R6 Pro extraction system (“Extraction System”) is capable of processing up to 250 kilograms of biomass per day. It is estimated that should the biomass contain a 7% level of CBD, this single system would be capable of producing up to 17.5 kgs of full-spectrum hemp extract with CBD per day. The full-spectrum hemp extract and CBD market has had somewhat volatile prices, with the wholesale cost of full-spectrum hemp extract containing CBD ranging from $8,000 CDN per kg up to $12,000 CDN per kg.
Plant Relief has 178 acres of industrial hemp under contract (the “Contracted Acreage”) for the 2019 harvest. It is anticipated that the gross amount of biomass, given reasonable growing conditions, has the potential to generate approximately 136,500 kilograms of biomass at an anticipated yield of 7% CBD, which in turn may yield up to 9,555 kgs of full-spectrum hemp extract with CBD.
The terms of the toll processing agreement between the Contracted Acreage and Oregon Plant Processing state Contracted Acreage will receive 50% of the produced CBD and Oregon Plant Processing will retain the remaining 50% of CBD product as their fee for processing the hemp biomass. Oregon Plant Processing and NSE will subsequently divide the 50% CBD yield by Oregon Plant Processing, with Oregon Plant Processing 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 NSE’s 30% portion.
NSE President Mr. Craig Goodwin states, “We are pleased to be capturing value from the investment we have made in CBD extraction. Our goal is to monetize this investment in the most expeditious and efficient way to enhance shareholder value while the process to secure the required CBD processing licenses in Canada continues. During the process we stand to gain additional experience, expertise and business contacts in the fast-developing CBD extraction market”.
About Naturally Splendid
NSE is a biotechnology/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. NSE is focused on the commercial uses of industrial hemp, and once regulations allow, in permitting jurisdictions, this will include CBD (cannabidiol), and other 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. Craig Goodwin
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. NSE 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 NSE'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 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, NSE 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.