Naturally Splendid Enterprises Ltd.
TSX VENTURE : NSP
OTCQB : NSPDF
FRANKFURT : 50N

Naturally Splendid Enterprises Ltd.

July 21, 2016 03:00 ET

Naturally Splendid Escalates 2016 Growth: New $2.1 Million Purchase Order Shoots Growth Rate to 3000% Since 2015

VANCOUVER, BRITISH COLUMBIA--(Marketwired - July 21, 2016) - Naturally Splendid Enterprises Ltd. (TSX VENTURE:NSP)(OTCQB:NSPDF)(FRANKFURT:50N) ("NSP").

• Following last week's announcement of substantial growth to date in 2016 (+2,350% growth in sales compared to 2015), Naturally Splendid has announced earlier today the receipt of new, previously unreported purchase orders totalling $2.1 million CDN

• Therefore, the total value of all purchase orders to date in 2016 exceeds $9.2 million CDN

• This remarkable sales number already outshines 2015 sales by a staggering +3,000%
(compared to 2014 sales: +3,815%)

• The company is suddenly growing exceptionally fast on a consistent basis thus far in 2016:

Q1: $1.5 million CDN
Q2: $4.3 million CDN
(+187% against Q1)
Q3: $3.6 million CDN (in the first three weeks of Q3)

CEO Craig Goodwin states in today's news:

"We are pleased to continue the pace we are on. We booked gross sales of $1,455,000 CDN in our first quarter of 2016 (Q1) and recently announced our second quarter (Q2) gross sales of $4,300,000 CDN. On June 20, 2016 the Company announced a Purchase Order of $1,450,000 CDN for the third quarter of 2016 (Q3) and now with this most recent Purchase Order of $2,100,000 CDN, total gross sales to date exceed $9,200,000 CDN. Our goal naturally, is to have Q3 exceed gross sales of Q2 and we are on a pace to reach that objective."

With 57.4 million shares issued and outstanding, Naturally Splendid is currently valued at $15.5 million CDN. If the sales growth rate so far in 2016 is any indication for the remaining months, the company could bag total sales of around $20 million CDN in 2016: A potential sales growth of +6,567% against 2015.

With an implied enterprise value ("EV") of $15.5 million CDN and projected sales of $20 million in 2016, Naturally Splendid currently has an EV/Sales multiple of only 0.78x. According to data from New York's Stern University, the following sectors had EV/Sales multiples significantly higher than Naturally Splendid's current multiple of 0.78x:

Drugs (Biotechnology): 8.32x
Drugs (Pharmaceuticals): 4.76x
Healthcare Products: 3.75x
Average of all sectors: 2.65x

Therefore, when applying a conservative EV/Sales multiple of 2.65x, Naturally Splendid would trade at $0.72 CDN/share (+167%% from current market price).

When applying a multiple of 8.32x, as being the case with biotechnology drugs, Naturally Splendid would be fairly valued at $2.25 CDN/share (+733% from current level).

In case management succeeds in growing Q3/4 sales figures stronger than Q1/2, an even higher valuation appears plausible. As per today's news, Naturally Splendid may exceed expectations again.

When looking at the company's share price development over the last two years, the following remarks can be made:

(1) Volume in Canada and Germany is picking up significantly since last week's unexpectly announced mammoth sales growth.

(2) Share price appears to have bottomed recently at $0.25 CDN and appears ripe for another upswing to the $0.48 CDN level.

(3) The explosive spike in share price in early 2015 demonstrates that similar price action may occur again, especially when rising above the $0.35-0.48 CDN levels.

(4) MACD indicator looks bullish at the moment and another run up may occur anytime now.

According to a statement by Naturally Splendid:

"We looked at the history of hemp and came to one clear conclusion - it was time for a radical change."

To view the first graph associated with this release, please visit the following link:

http://media3.marketwire.com/docs/Graph-1.jpg

To view the second graph associated with this release, please visit the following link:

http://media3.marketwire.com/docs/Graph-2.jpg

The hemp, cannabis and healthcare sector is gaining momentum again, not only in North America but on a global scale, and as such an increased investor's interest has been noticed recently and is expected to accelerate in the foreseeable future.

Naturally Splendid is well-positioned to capitalize on this emerging market trend as being one of the first pioneering companies generating substantial sales.

Bottom-line: Naturally Splendid is poised to evolve as a leader in the global hemp space. The year 2016 is increasingly turning out to become the long awaited "company-making" year and as such should provide most upside potential for its shareholders.

Naturally Splendid continues to see increased interest for hemp food products in Asia. The company has made significant progress in the Asian region while attending tradeshows as Members of the Canadian Trade Delegation in Singapore and Seoul and more recently as official Members of the Premier's Trade Mission to Seoul, Manila and Tokyo, which was lead by British Columbia's Premier Christy Clark.

Naturally Splendid is positioning itself to export healthy foods and value added natural formulations globally. The global functional, allergen-free, organic and other healthy foods market will push through the $1 trillion (EUR770b) mark for the first time in 2017, as consumer interest in preventing illness via foods snowballs, says Euromonitor International.

More information on Naturally Splendid's products and markets can be read in our last week's introductory report, entitled Naturally Splendid announces 2016 sales figures: Already 2,350% growth since 2015.

Website from Naturally Splendid:

www.naturallysplendid.com
www.hempomega.com
www.simpliingredients.com
www.nateralife.com
www.pawsitivefx.com
www.chii.ca

About Naturally Splendid Enterprises Ltd.

Naturally Splendid is a multifaceted biotechnology company that is developing, producing, commercializing, and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrientdense 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 six innovative divisions:

(1) Natera® brand of retail hemp superfood products currently distributed throughout North America and Asia;

(2) Chi Hemp Industries Incorporated (Chii) is selling natural and organic hemp products through e-commerce

(3) PawsitiveFX® brand of pet care products;

(4) Simlpi Plant-Based Ingredients Division of plant-derived bulk ingredients including patent-pending HempOmega®;

(5) The 12,000-square-foot POS / BPC Facility - which is managed for Naturally Splendid by POS Bio-Sciences - is positioned to offer commercial-scale custom processing solutions for biological materials, such as functional foods and natural health ingredients to a wide range of clients

(6) Hemp-based cannabinoid nutraceuticals.

The company's advanced technologies, industry expertise, and strategic partners allow for the creation of customized solutions with a consistent focus on quality and sustainability.

Disclaimer:

WARNING: The information contained in this report and website have been carefully compiled to ensure its accuracy at the date of publication. We make no representations, warranties or undertakings as to the accuracy of the content or our website or as to whether any information you download is virus or error free. We cannot accept any liability for any damages whatsoever arising to you as a result of your use of our website. Nothing in this information or elsewhere in this website shall exclude, limit or restrict our duties and liabilities to you under the Financial Services and Markets Act 2000 or any Conduct of Business rules with which we are bound to comply.

Risk Warnings: Naturally Splendid Enterprises Ltd. is a corporate client of SkyCapitalReport and will receive compensation for providing awareness and other services to the company including the publication and dissemination of marketing/advertisement material. This publication should NOT, therefore, be treated as independent or impartial research. sis or recommedation but strictly as an advertisement. The featured company may not have reviewed all of the content prior to publication and as such may not agree with the statements made herein.

Not an offer to buy or sell: This is a note and under no circumstances is to be construed as an offer to buy or sell or deal in any security and/or derivative instruments based on such securities. It is not an initiation or an inducement to engage in investment activity under S21 of the financial services and Markets Act 2000.

Publication prepared in good faith:

Comments made in this research note represent the current opinions of SkyCapitalReport as of the date of this document and have been arrived at in good faith. No representation or warranty either actual or implied is made as to the accuracy, precision, completeness or correctness of the statements, opinions and judgements contained in this document.

SkyCapitalReport's and related interests:

The author(s) who produced this research note, Mike Rodgers, are/is employees of SkyCapitalReport. Naturally Splendid Enterprises Ltd. has not been visited by the authors. SkyCapitalReport and/or its employees and/or directors and associates hold equity positions in Naturally Splendid Enterprises Ltd. and reserve the right to acquire or dispose of such positions in the future. SkyCapitalReport has, or will, receive a cash compensation from Naturally Splendid Enterprises Ltd. to feature the company.

Information purposes only:

This document is purely intended for background information purposes only and this report is furnished on the basis and understanding that SkyCapitalReport is to be under no responsibility of liability whatsoever in respect thereof.

Investment Risk Warning:

The value of any potential investment made in relation to companies mentioned in this document may rise or fall and sums realised may be less than those originally invested. Any reference to past performance should not be construed as being a guide to future performance. Investment in small companies, and especially small capitalized junior companies, carries a high degree of risk and investment in the companies or minerals mentioned in this document may be affected by related currency variations. Changes in the pricing of related currencies and or commodities mentioned in this document may have an adverse effect on the value, price or income of the investment.This report may have been forwarded to you solely for information and should not be considered as an offer or solicitation of an offer to sell, buy or subscribe to any securities or any derivative instrument or any other rights pertaining thereto ("financial instruments").

The information and opinions expressed in this report have been compiled from sources believed to be reliable but, neither SkyCapitalReport, nor any of its directors, officers, or employees accepts liability from any loss arising from the use hereof or makes any representations as to its accuracy and completeness. Any opinions, forecasts or estimates herein constitute a judgement as at the date of this report.

There can be no assurance that future results or events will be consistent with any such opinions, forecasts or estimates. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, express or implied is made regarding future performance.

This information is subject to change without notice, its accuracy is not guaranteed, it may be incomplete or condensed and it may not contain all material information concerning the company and its subsidiaries. SkyCapitalReport is not agreeing to nor is it required to update the opinions, forecasts or estimates contained herein. The value of any securities or financial instruments mentioned in this report can fall as well as rise. Foreign currency denominated securities and financial instruments are subject to fluctuations in exchange rates that may have a positive or adverse effect on the value, price or income of such securities or financial instruments.

Certain transactions, including those involving futures, options and other derivative instruments, can give rise to substantial risk and are not suitable for all investors. This report does not have regard to the specific instrument objectives, financial situation and the particular needs of any specific person who may receive this report.

SkyCapitalReport (or its directors, officers or employees) may, to the extent permitted by law, own or have a position in the securities or financial instruments (including derivative instruments or any other rights pertaining thereto) of any company or related company referred to herein, and may add to or dispose of any such position or may make a market or act as principle in any transaction in such securities or financial instruments.

Directors of SkyCapitalReport may also be directors of any of the companies mentioned in this report. SkyCapitalReport (or its directors, officers or employees and affiliates) may, to the extent permitted by law, act upon or use the information or opinions presented herein, or research or analysis on which they are based prior to the material being published.

This report is not intended for use by, or distribution to, US corporations that do not meet the definition of a major US institutional investor in the United States or for use by any citizen or resident of the United States.

This publication is confidential for the information of the addressee only and may not be reproduced in whole or in part, copies circulated, or disclosed to another party, without the prior written consent of SkyCapitalReport. © 2016

Naturally Splendid Enterprises Ltd. is a Canadian company with a global focus on redefining hemp and CBD via bio technology.

Contact Information