Hours after my piece suggesting Naturally Splendid (
TSXV:NSP,
Forum) was
sitting on a large purchase order from Korea was posted on Stockhouse last night, the company has announced that, indeed,
a deal has taken place.
NSP will send the first shipment of a $924,000 purchase order out at the end of the week, bound for receipt by Korea Beauty & Health Co. Ltd, which operates in the retail, online and home shopping channel space.
CEO Craig Goodwin says he has his hands on an irrevocable line of credit, so the money is in the bank, the product is being packaged and will be leaving the country Friday.
NSP has spent the majority of 2015 preparing their operation for large scale B2B orders like this, which has at times seen their share price drift in the absence of large scale signed deals. With this purchase, the company says it is opening the gates to Asia and beyond.
“I would also like to thank the Canadian government for their support as we expand our sales efforts in Asia,” said Goodwin in a news release. “Naturally Splendid is now considering attending trade missions as a part of a Canadian contingent in Singapore and South Korea over the next several months to establish new business contacts.”
REACTION:
Stock jumped 23.4% on the news, having rolled upwards for several days prior on rumor, moving from $0.25 to today’s $0.395 in the last several trading days.
OUR TAKE:
In my earlier piece, I suggested a 10 metric ton delivery would be a solid company maker. The news today shows what’s going out as the ‘first shipment’ of the delivery is twice that.
It’s a good day for long holders and a good day for management. With Laguna Blends product being delivered soon and a Cocos Beverages LOI in play, it appears things are coming together for NSP.
--Chris Parry
https://www.twitter.com/chrisparry
FULL DISCLOSURE: Naturally Splendid is a Stockhouse Publishing marketing client, and the author owns stock in the company, purchased ont he public markets.