Naturally Splendid (TSXV:NSP) announced it has closed the restated and amended licence agreement with Full Spectrum Laboratories Ltd. (FSL), a company controlled by Charles R. Brink, a director of Naturally Splendid, whereby the parties amended the terms of the licence agreement dated Nov. 17, 2015.
As quoted in the press release:
This filing marks the acceptance by the TSX Venture Exchange for the previously announced restated and amended license agreement. As a result of closing of the Restated and Amended License Agreement, Naturally Splendid acquired a one hundred percent (100%) interest, without royalty, in FSL’s omega technologies, including HempOmega(TM) and H2Omega(TM). In addition to hemp, the technology has the potential to transform flax, chia, canola, chia and algae into highly bioavailable water dispersible powders and aqueous solutions. FSL removed the minimum annual royalty of USD $1.6 million (the “Minimum Royalty”) that was set to commence after the second anniversary of the Original License Agreement and continue for ten (10) years for a total reduction of $16,000,000 CDN in guaranteed royalty payments. In consideration of owning a 100% interest in the omega technologies and the removal of the Minimum Royalty, Naturally Splendid extinguished its non-exclusive license of FSL’s bioreactor technology and changed its exclusive license on certain analytical testing SOPs and GC-MS Terpene Analysis SOPs to a non-exclusive license.
Naturally Splendid’s CEO Craig Goodwin states:
We anticipate that the outright acquisition of the omega technologies will greatly contribute to our corporate strategy of becoming a leading producer of value-added nutritional ingredient solutions. Secured ownership will allow us to explore out-licensing opportunities for HempOmega(TM) and other applications of the omega technologies.”Bryan Carson, Naturally Splendid’s VP of Operations added, “We are continuing to promote HempOmega(TM) as sustainable omega ingredient for the human, pet, livestock, and cosmetic industries. In initial studies, HempOmega(TM) demonstrated higher sustainability and bioavailability than unformulated omega oils. Our researchers will also begin to look at other plant oils that may be successfully encapsulated with this technology to create additional bioactive ingredients.