Naturally Splendid acquires Chi Hemp Industries
2015-12-02 09:09 ET - News Release
Mr. J. Craig Goodwin reports
NATURALLY SPLENDID ACQUIRES CHI HEMP INDUSTRIES INC.
Naturally Splendid Enterprises Ltd. has acquired all of the issued and outstanding shares of Chi Hemp Industries Inc. in accordance with the terms of a securities purchase agreement among Naturally Splendid, Chi and the shareholders of CHII.
Chi is an on-line hemp company, based in Victoria, B.C. Its existing warehousing operation in Victoria, B.C., that distributes hemp products including seeds, oil and protein, will be replaced by Naturally Splendid's 7,000-square-foot facility in Burnaby, B.C. Under the terms of the securities purchase agreement, the Chi shareholders sold the Chi shares to Naturally Splendid and, in consideration of which, Naturally Splendid issued 319,148 common shares to the Chi shareholders and has agreed to pay $75,000 to the Chi shareholders. The cash payment will be made in three separate tranches: $25,000 within three months of closing, $25,000 within six months of closing and $25,000 within nine months of closing.
Since 1998, Chi has been actively working to promote and educate the Canadian hemp industry throughout North America. Chi and its various content promoting websites are at the hub of hemp content on-line, which drives traffic and customers to Chi's wholesale and on-line sales. All sales are driven through on-line properties.
Chi has sold over one million pounds of hemp products since 1998. In fiscal year 2014/2015, Chi generated approximately $300,000 in sales as well as positive earnings. The additional infrastructure and support available from Naturally Splendid creates the opportunity to build upon this revenue base.
Also on closing, the Chi shareholders, being Marco Pimentel and Agnieszka Wojdyla, will enter into a one-year consulting agreement with Naturally Splendid. Their responsibilities will include the development and growth of Chi and associated websites, as well as optimizing revenue on Naturally Splendid's on-line business. Further, the Chi shareholders will receive a 12-per-cent gross sales commission on any lines of business that are directly benefited from their services.
Mr. Pimentel, who is the vice-president of marketing for a performance-based ad tech network, was instrumental in developing and implementing systems that increased revenue from $5-million to $30-million within a one-year period. Many of the fundamental optimization strategies as well as search engine marketing and media spend deployed by Mr. Pimental in his role as vice-president of marketing, will be adapted to optimize the multiple websites of Naturally Splendid.
Ms. Wojdyla is a graduate of the University of British Columbia with over 10 years of business systems and operations experience. She oversees Chi's operations and is the creative director behind the branding that customers see today. Mr. Wojdyla's entrepreneurial and artistic skills have been instrumental to differentiate Chi beyond companies within its niche market.
Mr. Pimentel stated: "These are exciting times indeed. We look forward to implementing the successful e-commerce strategies that we have developed and fine-tuned as we begin optimizing the existing roster of e-commerce sites under Naturally Splendid. We have already nearly completed a full redevelopment and optimization of [the] pawsitivefx [website] which we expect to launch shortly giving us immediate access to the multibillion-dollar pet industry in North America".
Ms. Wojdyla added: "I want to emphasize we are not limited to just the existing e-commerce sites currently owned and being optimized under Naturally Splendid. We are reviewing a number of e-commerce opportunities that we believe have significant revenue generating potential, which will grow the Naturally Splendid umbrella of companies within the health nutrition sector."
We seek Safe Harbor.
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