VANCOUVER, British Columbia, Aug. 30, 2016 (GLOBE NEWSWIRE) -- Naturally Splendid Enterprises Ltd. (“Naturally Splendid”) (FRANKFURT:50N) (TSX-V:NSP) (OTC:NSPDF) is pleased to announce its unaudited financial results for the six months ended June 30, 2016. All amounts are in Canadian dollars and are prepared in accordance with International Financial Reporting Standards.
Naturally Splendid recorded $3,657,852 in revenue during the second quarter of 2016 (2016 YTD: $5,097,880). This represents a significant increase in revenue compared to the second quarter of 2015, which amounted to $70,459 (2015 YTD: $100,952). A further $712,000 of sales was recorded as deferred revenue as the product had not shipped as of June 30, 2016. The significant increase in top line revenue was due to bulk sales of hemp products to Korea and POS BPC commencing operations in the second quarter of 2016.
Gross profit for the second quarter of 2016 amounted to $1,596,383 (2016 YTD: $1,676,736) and net income of $885,301 (2016 YTD: $427,009). These amounts also represent significant increases over the 2015 second quarter gross loss of $35,563 (2015 YTD: $28,686) and net loss of $905,485 (2015 YTD: $2,205,288).
Naturally Splendid CEO Mr. Craig Goodwin states, "We’ve experienced significant growth in gross revenue from 2014 and 2015 to where we are at the end of the second quarter in 2016. More importantly, Naturally Splendid has achieved net income in Q2. This represents a new and impressive milestone for us, which we plan to build on through 2016 and into the future. With exports, processing and our retail lines performing well, we now plan to focus more attention and resources to pursue the HempOmega® and cannabinoid markets.”
Naturally Splendid’s unaudited condensed financial statements and management’s discussion and analysis have been filed on Naturally Splendid’s profile on the SEDAR website.
Naturally Splendid also announces that it has closed a second tranche of its previously announced private placement financing by issuing a total of total of 175,000 units (the “Units”) for gross proceeds of $47,250. In total, Naturally Splendid has issued 3,077,168 Units for total gross proceeds of $830,835.
Each Unit is comprised of one common share of Naturally Splendid and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one additional common share at $0.35 per share for a period of two years from the date of the issue. Naturally Splendid will have the right to accelerate the expiry date of the Warrants if, at any time, the average closing price of Naturally Splendid’s common shares is equal to or greater than $0.45 for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after Naturally Splendid issues a news release announcing that it has elected to exercise this acceleration right.
In connection with the second tranche of the financing, Naturally Splendid paid finders a cash commission totaling $4,725 and issued a total of 17,500 finder’s warrants. Each finder’s warrant is on the same terms as the Warrants.
The securities issued under the financing will be subject to a hold period expiring on December 31, 2016 pursuant to applicable securities laws and the rules of the TSX Venture Exchange.
Proceeds of the financing will be used for product development and working capital and corporate purposes.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of Naturally Splendid's securities in the United States.
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.
For more information e-mail firstname.lastname@example.org or call 604-673-9573
On Behalf of the Board of Directors
J. Craig Goodwin
Naturally Splendid Enterprises Ltd.
(NSP – TSX Venture; NSPDF – OTCQB; 50N Frankfurt)
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 including, but not limited to, Naturally Splendid’s ability to complete the balance private placement financing. 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.
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.