Toggle navigation Logo Hot Stock Of The Month Naturally Splendid: Potential Tenbagger in the Booming Hemp/CBD-Space Published: 21 February 2017
SYMBOL NSP.V ISINCA82967M1005 § Price§C$ 0.375 Target Price C$ 3.75
Potential§> 1000% Primary Market TSX Venture Secondary Market Frankfurt/Xetra We are in the middle of a revolution that is making new millionaires every trading day and we tell you how to profit from this major trend.
Hemp has been cultivated for centuries and was used to make extremely hardy and long lasting hemp rope and bags. Unfortunately, with the passage of many anti-cannabis laws in the late 20th and early 21th century, cannabis use and cultivation was outlawed and driven underground. That is fast starting to change with several countries, states and regions legalizing cannabis once again and it looks like they will be followed by many more in a near future
In many ways, the Canadian Marijuana Reform is ahead of developments in the USA, with legislation pending this spring, and Prime Minister Justin Trudeau recently taking to Facebook to garner support to push for nationwide legalization, regulation and taxation of marijuana. It would be a huge step for Canada, where medical marijuana has been legal for years, and indeed big news for the rapidly evolving cannabis industry as a whole.
Hemp and marijuana plants contain unique compounds called cannabinoids which offer a variety of health benefits. Current research has revealed over 100 different cannabinoids so far, but THC is the most well-known. Another important cannabinoid is Cannabidiol (CBD).
Naturally Splendid Enterprises is a screaming buy for investors
Naturally Splendid Enterprises (TSX.V: NSP / Frankfurt: 50N), headquartered in Vancouver, Canada, is a multifaceted biotechnology company that is developing, producing, commercializing and licensing an entirely new generation of plant-derived, bioactive ingredients, nutrient dense foods and related products.
Naturally Splendid is building an expanding portfolio of patents (issued and pending) and proprietary intellectual property focused on the commercial uses of industrial hemp and non-psychoactive cannabinoid compounds in a broad spectrum of applications.
Naturally Splendid currently has six innovative divisions:
(1) Natera® brand of retail hemp superfood products currently distributed throughout North America and Asia;
(2) Chi Hemp Industries Incorporated (Chii) is selling natural and organic hemp products through e-commerce
(3) PawsitiveFX® brand of pet care products;
(4) Simpli Plant-Based Ingredients Division of plant-derived bulk ingredients including patent-pending HempOmega®;
(5) The 12,000-square-foot POS / BPC Facility - which is managed for Naturally Splendid by POS Bio-Sciences - is positioned to offer commercial-scale custom processing solutions for biological materials, such as functional foods and natural health ingredients to a wide range of clients.
The facility was built for C$20,000,000 in late 90?s. Naturally Splendid purchased 51 percent in June 2015 for C$2M. Management is seeing the potential replacement costs of the facility at C$30,000,000 CDN. The POS BPC facility is operational as of March 28, 2016 and currently custom toll processing for clients (1 Metric Ton - 100?s of Metric Tons). The objective is to secure multiple clients for 3 to 5 year agreements.
(6) hemp-based cannabinoid nutraceuticals. Naturally Splendid's advanced technologies, industry expertise, and strategic partners allow for the creation of customized solutions with a consistent focus on quality and sustainability.
Huge Market Opportunities
Global Functional Food Market: US$240 Billion (2014)
Omega-3 Foods: US$35 Billion (2013)
Pet Industry-USA: US$60 Billion (2015)
Legal Cannabis Market: United States - US$10.2 Billion by 2019
Cannabis?Colorado Only: US$500 Million (2014)
Breakthrough in South Korea
Naturally Splendid received $9,000,000+ in Purchase Orders from its South Korean Distributor in 2016. Korea Beauty & Healthcare is using LOTTE Home Shopping Channel (21,000,000 daily viewers) where 40,000 pounds of shelled hemp seed hearts were sold in 40 minutes on the first show! Hemp seed hearts were sold out in 13 consecutive shows.
Shelled hemp seed has primary been an export product of Naturally Splendid. Now the Company wants to extend product offerings to established distributors (hemp protein, hemp oil and HempOmega®) and also wants to expand distribution channels in South Korea as well as penetrating additional countries for export, i.e. Thailand and Japan.
Naturally Splendid: Potential Tenbagger in the Booming Hemp/CBD-Space Useful information about hemp, hemp seeds and CBD
- Hemp crops can be harvested around four months after the seeds are planted.
- Hemp can grow nearly anywhere in the world, in many types of soil - even in short growing seasons or in dry regions.
- Hemp can grow without pesticides and the dense growth of the plants suffocate most weeds, purifies and nourish the soil, and is suitable for rotation use, not only due to its short harvest cycle (120 days).
- Hemp is a high-yield crop. One acre of hemp produces twice as much oil as one acre of peanuts, and nearly four times as much fiber pulp (for paper) as an acre of trees.
- Hemp seeds have up to 24% protein.
- Hemp seeds have all the essential amino acids that human bodies need but cannot produce, making it a complete protein. These amino acids aid muscle control, brain function, and regular maintenance of body cells, tissues, muscles, and organs, and collectively help the body?s immune system.
- Hemp seeds have an ideal 1:3 ratio of EFAs (essentially fatty acids) Omega-3 to Omega-6.
- Hemp also has Omega-9 and other EFAs. Collectively, EFAs in hemp are good for heart health, for various reasons, including its ability to dissolve plaque in arteries and to reduce blood cholesterol. EFAs also have anti-inflammatory properties.
- Omega-3, found particularly in hemp seeds, lowers blood pressure and reduces the risk of cardiovascular disease. It has potential to delay or reduce the chances of getting Alzheimer?s disease.
- Omega-6 helps regulate metabolism, aids brain function, and stimulates growth of skin and hair, amongst other benefits.
- Hemp seeds contain a higher level of EFAs than any other known oil made from nuts or seeds.
In addition to EFAs and amino acids, hemp seed oil has GLAs (gamma linoleic acids), polyunsaturated fatty acids and more ? all of which are valuable to hair and skin care.
- Hemp seeds and protein powder can regulate blood sugar ? due to the protein and fiber content slowing down digestion ? and can make you feel full for longer, especially when taken with breakfast.
- Smoking hemp cannot get you high as with marijuana, due to the extremely low THC levels. Also, the CBD in hemp blocks the psychoactive properties of any negligible THC content that might be present. Marijuana strains of cannabis are harvested for the leaves and buds. Hemp strains are harvested for the stalk and seeds for fiber and hemp oil, and for the flowers if it is grown to produce CBD extracts. Any attempt to extract THC from hemp plants would not be worth the costly effort.
- Consuming hemp-based products will thus not negatively affect any drug tests for THC.
- People are using CBD extracts for a whole range of ailments from pain relief, rheumatoid arthritis, epileptic fits to appetite enhancement without having the ?high? associated with marijuana.
Blue Sky Potential with HempOmega®
HempOmega® is an environmentally sustainable, vegetarian source of Omegas 3 and 6 that boasts a superior nutrient profile. A water soluble, homogeneous, powdered ingredient, it can be easily integrated and/or manipulated, with no unpleasant taste or chemical contamination ? opening up entirely new product formulation opportunities. HempOmega?s greater ability to endure the digestive process delivers unmatched bioavailability, thereby maximizing its potential health benefits.
Features and Benefits
HempOmega is a dry powder preparation of 30% hemp oil (sourced from high quality, non-GMO seeds).
HempOmega possesses superior organoleptic properties over encapsulated fish oil or flax oil.
HempOmega is manufactured by POS Biosciences in Saskatoon, Saskatchewan in a cGMP, HACCP and ISO9001 certified facility.
HempOmega vs. Hemp Seed Oil
In a controlled study, eggs laid by chickens that were supplemented with HempOmega vs. hemp seed oil showed a 537% increase in omega content, a decrease in the amount of saturated fatty acids within their egg yolks as well as a 272% increase in omega content of the chickens? thigh meat.
Conclusion
Thanks to its bulk and retail sales as well as revenue from the POS BPC facility, Naturally Splendid is well on its way to generate positive cash flow. Free cash flow will be used to pursue company making opportunities like CBD products and HempOmega®.
In the ComCap.media Expert Round Table Discussion about Hemp: The Multi-Billion Dollar Crop, David ?Avocado? Wolfe is making a good case for superfoods. Natural Splendid is in a prime position to benefit from this major trend.
Naturally Splendid?s new CEO, Dave Eto, has spent over 30 years in the food processing industry and recently served as Executive Director and Chief Executive Officer of the BC Dairy Association. He was responsible for the overall management of the BC Dairy Association, including communicating with hundreds of farmers, working with various governmental departments as well as developing many of the marketing initiatives launched during his term.
Naturally Splendid: Potential Tenbagger in the Booming Hemp/CBD-Space Previously, he held a senior corporate position with Premium Brands Holdings, which is a company listed on the TSX and a Canada-based producer, marketer and distributor of specialty food products. He has also held the position of President and Chair of the BC Food Processors? Association for the past five years and has many contacts within the government, academia and the food processing industry.
With a current market cap of just C$22.75m and an imminent legalization of recreational marijuana as well as CBD products in Canada, Naturally Splendid looks heavily undervalued. We also expect that the recently appointed CEO, Dave Eto, will use his powerful network to acquire a lot of new clients for HempOmega® so we wouldn?t be surprised to see Naturally Splendid reaching a market cap north of C$100m in 12 months from now.
In our opinion, the risk/reward ratio is excellent at the moment. You can buy Naturally Splendid shares directly on the TSX Venture but there is also good liquidity in Germany (Tradegate, Frankfurt and Stuttgart).
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