In a recent article Naturally Splendid (TSXV:NSP) CEO and Director Craig Goodwin highlighted how the company is building a portfolio of high quality hemp and plant-based products.
As quoted in the article:
Naturally Splendid has a solid business strategy. We strive to be cash flow positive with our conventional line of natural products through exporting and our retail lines. We plan on building these revenue streams while we pursue the ‘blue sky’ opportunities associated with our omega extraction and formulation technologies and products. We are also well positioned to capitalize on the evolving cannabinoid markets in North America in particular, but also globally as the regulations become more ‘cannabinoid friendly’. We also have majority ownership of a 12,000 square foot processing facility in Saskatoon, Saskatchewan that we can utilize for our own extraction and formulation of plant based ingredients and products such as HempOmega™. This facility can potentially be converted to perform cannabinoid extraction and formulation as the regulatory landscape evolves to allow for such procedures in Canada.
We have made significant progress exporting to South Korea. We initially anticipated exporting 100 tons of shelled hemp seed hearts to South Korea for all of 2016. Since initiating this exporting business in February 2016, we have shipped almost 400 tons of shelled hemp seed hearts for a value approaching $4M CDN.
We are now estimating that we may export upwards of 1,000 tons of shelled hemp seed hearts to South Korea in 2016. Additionally, we will begin to introduce additional products to the South Korean market including HempOmega™.
Now that there we are nearing a cash flow positive position, we can begin to focus more efforts to securing clients and purchase orders for our HempOmega™. With a cash flow positive company, we can also begin to revisit the cannabinoid opportunities evolving in the United States. It seems Naturally Splendid is firing on all cylinders, let’s put this in perspective and talk comparables within your sector.
I believe that most of the ‘heavy lifting’ is done. We have assembled a strong professional team, launched 3 retail brands, secured advanced technologies in the areas on plant based bio-ingredients including omega extraction and formulation, as well as secured significant cannabinoid technologies. We have also bought a majority interest in a processing facility with a replacement cost of $30M Canadian. We have launched an export division and our top line sales have already surpassed all of 2015…and it looks like quarters 2, 3 and 4 will be stronger than Q1.
In short, the Company is much further developed than last year when we traded as high as $1.04 per share. I do believe the future is very bright for Naturally Splendid and its shareholders.