Naturally Splendid Enterprises (
TSX: V.NSP,
Stock Forum) advanced their efforts to grow their hemp-based offerings when the company announced today that it had signed a letter of intent (LOI) with Laguna Blends where both companies plan to enter into a research, development and manufacturing agreement to pursue mutually beneficial opportunities in the hemp food products space.
According to the
news release, upon the creation of a definitive agreement, the company intends to contribute its research and development expertise in hemp-derived, nutrient-dense foods, nutritional food enhancers and related products.
Specifically, the company will complete its formulation of its HempOmega™ protein and flavour it to meet Laguna’s requirements. Laguna will then offer its expertise as a marketing and sales company in the hemp foods sector and the purchase, sale and distribution of the Laguna HempOmega™ product.
A definitive agreement is expected to be reached by the end of May 2015.
Under said agreement, the company will grant Laguna a license to its trademarks to be placed under the Laguna HempOmega™ products, a worldwide exclusive right and license to Laguna to sell Laguna HempOmega™ based on sales target minimums, and provision of the Laguna HempOmega™ product to Laguna as and when purchased by Laguna.
As a result of the transaction, Laguna will place an initial $100K order for the Laguna HempOmega™ product and expects to place another $1.5 million order in the first year of the R&D agreement. It also expects to place a $4.5 million order in the second year. All of this is dependent on Laguna reaching certain sales targets.
Laguna Blends President and CEO, Stuart Grey, commented, “Naturally Splendid is a leader in the research and development, and production of hemp-based superfood products. We are delighted to collaborate with NSP with the development of the hemp protein formulations. The products that NSP produces for Laguna will be high in quality and unique to what's currently available. Laguna affiliates will be able to retail these products in the United States and Canada.”
Naturally Splendid Enterprises was in the news recently when
the Vancouver-based company was highlighted in a medical marijuana update by Stockhouse’s MMJ guru Chris Parry a little over a week ago.
Shares were down 8.51% to $0.86 per share as investors sold into the news.
Currently there are 50.2m outstanding shares with a market cap of $43.2 million.
FULL DISCLOSURE: Naturally Splendid Enterprises is a Stockhouse Publishing client.