Naturally Splendid Enterprises Ltd. (TSXV:NSP) announced that its wholly owned subsidiary Naturally Splendid USA has entered into an exclusive sales and distribution agreement with Medropharm GmbH, a biotech company located in Switzerland.
As quoted in the press release:
Medropharm specializes in the production, extraction, research, and formulation of raw materials and products derived from industrial hemp. Under the Agreement, Naturally Splendid USA will have the exclusive rights to market and distribute in North America an edible, cannabidiol-rich, hemp powder, as well as the non-exclusive rights to market and distribute hemp-derived cannabinoid extracts and formulations globally. The products contain naturally-occurring cannabidiol, a non-psychoactive cannabinoid prevalent in industrial hemp strains of Cannabis sativa. The term of the initial exclusive Distribution Agreement is for two (2) years. Pursuant to the agreement, Naturally Splendid will be permitted to sell the products to Medropharm’s existing clients. Naturally Splendid is required to purchase 2,000kg of the hemp powder in the first year and 3,000kg in the following years to accommodate Medropharm’s existing product demands as well as NSE’s own industry prospects.
Medropharm’s industrial hemp is sustainably grown on over 3,500 hectares under strict EU Regulations with constant monitoring to minimize the environmental impact and ensure the highest quality of raw materials. From seed through product development, the raw materials are analyzed to ensure consistency in quality, safety and composition. The products are manufactured and tested in facilities with FDA, ISO, and cGMP certifications which is rare find in this burgeoning industry.
Craig Goodwin, CEO of Naturally Splendid, commented:
Naturally Splendid is thrilled to have found a partner like Medropharm with a similar focus on quality and accountability. We are most fortunate to start this exclusive distribution agreement with Medropharm as it allows us to continue sales of the Medropharm products in the United States to clients that previously purchased the products from Medropharm directly. It is our intention to build on that existing clientele and increase sales volumes significantly. We remain committed to maximizing the multiple revenue streams available from this one amazing plant.
Patrick Widmer, CEO of Medropharm, commented:
We are delighted to partner with Naturally Splendid for high-volume distribution of our hemp-derived products. We share the same strategy focused on creating an industry standard for transparency and quality for our consumers. Our cultivation and inventory are sufficient to allow Naturally Splendid to generate annual sales of our cannabidiol (CBD) products at approximately US $10,000,000. We are confident that Naturally Splendid, through focused efforts, can grow annual sales of the products to ten (10) tons annually in the United States as the regulatory environment continues to evolve. There are many exciting future opportunities on the horizon for our partnership with Naturally Splendid and we look forward to a prosperous relationship.