Naturally Splendid (
TSX: V.NSP, Stock Forum) topped the coffers today when the company
announced closing the first $1.6 million tranche of a previously announced private placement financing worth up to $3.0 million.
Brent Rusin, head of Corporate Communications, explained that the majority of this financing would be directed toward its previously announced LOI to acquire 51% of the issued and outstanding shares of POS BPC Manufacturing Corp. for its bio-processing facility located in Saskatoon, Saskatchewan.
The deal is expected to be immediately accretive to the company’s revenue stream and is a real steal as the acquisition snaps up 51% of an operating facility for approximately $1.5 million that would have taken $30.0-plus million to build and fit out from the ground up.
This acquisition is over and above the POS pilot plant agreement that company already has with POS which gives NSP exclusive access to the plant. Combine this with the 51% ownership of the bio-processing facility and NSP has locked up a comprehensive exclusivity to POS, a firm with a well-established run of business totaling over 35 years of operation.
NSP is cashed up and with the recent $1.0 million-plus warrant exercise isn’t directing any of this financing toward corporate and administrative needs. The remaining money that will be raised from the financing will instead be put toward the company’s announced plans of growing into the Colorado hemp market as it cashed up and able to operate.
NSP was in the news recently when
the Vancouver-based company announced it was going to launch a bulk ingredient division.
Shares were 2.04% at the end of trading Friday.
Currently there are 51.7m outstanding shares with a market cap of $25.8 million.
FULL DISCLOSURE: Naturally Splendid is a Stockhouse Publishing client.