Naturally Splendid Enterprises Ltd.

Naturally Splendid Enterprises Ltd.

May 15, 2013 13:58 ET

Naturally Splendid Secures Exclusive Sales Agreement for Proprietary Omega Products: HempOmega™ and H2Omega™

VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 15, 2013) - Naturally Splendid Enterprises Ltd. (TSX VENTURE:NSP) (Naturally Splendid) is pleased to announce it has entered into a Sales Agreement with Canadian Medical Hemp Inc. (CMH) to market and distribute in Canada HempOmega™, on an exclusive basis, and H2Omega™, on a non-exclusive basis. Naturally Splendid will also have the right to market and distribute HempOmega™ and H2Omega™ in the United States on a non-exclusive basis.

Under the terms of the Sales Agreement, Naturally Splendid will have the right to market and distribute HempOmega™ and H2Omega™, whether on an exclusive or non-exclusive basis, until January 1, 2017. Provided that Naturally Splendid meets certain annual purchase benchmarks, Naturally Splendid will maintain its exclusive right to market and distribute the products in Canada. The Sales Agreement is also subject to certain minimum annual purchase commitments by Naturally Splendid.

HempOmega™ and H2Omega™

Developed by CMH, HempOmega™ and H2Omega™ are proprietary, patent pending, omega products that utilize nano-encapsulation. Testing has confirmed that these products have increased bioavailability and sustainability. HempOmega™ and H2Omega™ have been developed to deliver a sustained release of omega oils into the bloodstream over a longer period of time with increased stability when compared to existing omega oil products.

Naturally Splendid CEO, Craig Goodwin states, "CMH's scientific discovery for the omega nutritional food market is truly remarkable. Converting an oil, which has limited applications, into soluble powder and aqueous forms has significantly increased the commercial potential. Under the terms of the Sales Agreement, CMH has committed to provide Naturally Splendid with samples of both HempOmega™ and H2Omega™ for use in our own products and presentation to our prospective clients within sixty (60) days."

HempOmega™ and H2Omega™ are two innovative Omega-based ingredient products with the potential to be used in an extensive range of existing retail products. Product opportunities include, but are not limited to baked goods, energy and meal replacement bars, protein and meal replacement powders, dairy products and non-dairy substitutes, as well as nutritional supplements.

Mr. Goodwin adds, "Naturally Splendid plans to develop and market its own proprietary line of omega enhanced products and supplements using HempOmega™ and H2Omega™. In addition to developing our own proprietary products, HempOmega™ and H2Omega™ will be marketed to major brands within the food and beverage sectors as ingredients to be added to existing retail lines. The commercial applications for these first two omega products from CMH are extraordinary".

The Market

According to Nutrition Business Journal, the global nutrition industry is currently estimated to be approximately US$350 billion1. The sector is represented by the following categories: natural and organic food; natural personal care; functional food; and dietary supplements. The global market for Omega 3 products was valued at US$24 billion in 2011 by "Packaged Facts" and growth in the global, dietary supplement market is estimated at 12% annually2.

In a recent Ipsos Reid survey, Canadian respondents were asked about the level of influence specific ingredients had on their food purchase decisions. The survey showed that a full 80% of Canadians are influenced to buy a product if it contains omega-3 fatty acids.

Additionally, the survey found that 45% of all Canadians have used, or are using, omega-3 fatty acids in a natural health product format.

Goodwin concludes "Clearly the market is eager to purchase Omega nutrition and Naturally Splendid is in a unique position to provide a natural, healthy and effective product to fill that need in a manner never before available to the global consumer. HempOmega™ and H2Omega™ are ground-breaking discoveries, which we expect will have positive impacts on the production and processing industries in Canada, as well as deliver health benefits to a rapidly expanding market."

About Canadian Medical Hemp Inc.

Canadian Medical Hemp, Inc. ("CMH") is a private Canadian company located on the University of British Columbia campus in Vancouver, B.C. allowing CMH to connect directly into the core services and research faculties of the university. CMH provides pilot manufacturing and process/product development for Omega fatty acids with an initial focus on industrial hemp. CMH owns the patent-pending formulation technology for the powder and aqueous forms of edible oil named HempOmega™ and H2Omega™. These technologies have been developed from active studies over the past few years and CMH has been able to identify commercial applications for these technologies in the nutraceutical and pharmaceutical industries. This has led to new applications for selected food products that can incorporate these new forms of industrial hemp and other omega rich oils.

CMH Director Guan Lim comments, "We are very pleased to collaborate with a company like Naturally Splendid. Our belief is that the combination of our patent pending science and Naturally Splendid's marketing expertise will launch many successful omega-based products in a variety of market categories."

Through a previous business venture, CMH principals have experience and success with the production and distribution of functional beverages reaching combined sales in excess of $1 billion, over a three year period.

About Naturally Splendid Enterprises Ltd.

Naturally Splendid is currently focused on a line of hemp-based products available in a retail network of over 300 stores throughout British Columbia and into Alberta including; Save On Foods; Urban Fare; London Drugs; Marketplace IGA; and Sobeys. Naturally Splendid's existing products consist of; premium shelled hemp seeds; hemp protein; organic hemp oil; and hemp-based supplements.

Naturally Splendid received federal and provincial funding towards the research and development of new hemp-based food products, being HempOmega™ and H2Omega™, as well as for a strategic study to assess the feasibility of vertical integration. Success with these programs has opened the door to further government funding and support.

Naturally Splendid is dedicated to providing the highest quality natural superfoods and delivering them to the general public in a tasty, nutritious manner.

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. Such factors include, among other things: risks and uncertainties relating to Naturally Splendid's ability to meeting its minimum purchase amounts under the Sales Agreement. 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.

1 Nutrition Business Journal (2011) Global Nutrition Industry Overview. Volume XVI. No. 11/12. Nov/Dec 2011.



Contact Information

  • Naturally Splendid Enterprises Ltd.
    Suite 605, 1166 Alberni Street
    Vancouver, BC V6E 3Z3

    Naturally Splendid Enterprises Ltd.
    J. Craig Goodwin
    (604) 472-0902