Naturally Splendid Enterprises Ltd. (TSX-V: NSP; FSE: 50N; OTC: NSPDF) has entered into a non-binding agreement for a draw-down equity facility of up to $6,000,000 with Alumina Partners (Ontario) Ltd., a subsidiary of Alumina Partners LLC, a New York-based private equity firm.
The agreement provides for equity private placement offerings, to be conducted in draw downs made at the sole discretion of Naturally Splendid Enterprises over a period of 24 months.
At closing, Naturally Splendid Enterprises closed the first tranche offering under the facility for $50,000.
The amount of each offering will be made at the mutual agreement of Naturally Splendid Enterprises and Alumina Partners, up to a maximum of $500,000 per offering.
Naturally Splendid Enterprises intends to use the funds received in this private placement to partially fund its acquisition of Prosnack Natural Foods Inc. and for general working capital purposes.
Naturally Splendid CEO Dave Eto stated, “For the past eight months we have made key decisions to restructure our operations; growing our retail brands and becoming less dependant on bulk seed sales and building both co-packing capacity and acquisition strategy. While we move closer to being cash flow positive, this arrangement with Alumina Partners gives Naturally Splendid the financial flexibility and unilateral control over our financing requirements. We also have the security to responsibly and agressively make long term decisions that gives NSE a sustainable future for our employees, shareholders and partners.”
“We chose Alumina Partners as they have demonstrated a commitment to the sector by entering the Canadian Cannabis space with seveal other successful equity offerings such as Isodiol, Abattis, and others so we are very pleased to have a partner that is knowledgeable and sensitive to our markets, shareholders and company requirements.”
“Alumina is very pleased to enter into this investment agreement with Naturally Splendid,” said Adi Nahmani, Managing Member of Alumina Partners LLC. “We look forward to providing them with the financial flexibility to expand their operations and retail brands in this exciting space. The combination of their corporate vision and innovative management team positions them extremely well for rapid growth and development.”
Naturally Splendid is a biotechnology and consumer products 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.
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