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Naturally Splendid Enterprises announces C$2.5M placing to expand facilities and develop products

Published: 10:02 07 Jul 2021 EDT

Naturally Splendid Enterprises Ltd. -
"This raise allows us to continue on our path to develop, manufacture and distribute a wide range of plant-based entrees in partnership with Australia's largest plant-based manufacture," said CEO Goodwin

Naturally Splendid Enterprises Ltd (CVE:NSP) (OTCPINK:NSPDF) (FRA:50N) is set to bring in up to C$2.5 million from a private placing to expand the plant-based foods firm's existing facilities and develop new products. 

In June this year, the company announced a deal with Australia's Flexitarian Foods Pty Ltd, in which Naturally Splendid will become Flexitarian’s exclusive manufacturer of an extensive line of plant-based, meat-alternative products for the Canadian market. 

READ: Naturally Splendid buys 'state-of-the-art' packaging line and issues shares to cancel debt

Naturally Splendid said it would market these products in North America under the brand Natera Plant Based Foods, as well as form strategic partnerships with private label clients.

"This raise allows us to continue on our path to develop, manufacture and distribute a wide range of plant-based entrees in partnership with Australia's largest plant-based manufacture," said CEO Craig Goodwin in a statement today.

"In particular, we will expand the manufacturing capabilities of our existing Safe Quality Food (SQF) certified facility increasing the manufacturing capacity approximately ten (10) times from one (1) ton of finished product a day, to ten (10) tons of finished product per day.

"The facility will be capable of manufacturing a wide range of plant-based alternatives for beef, chicken, pork, fish and shellfish, in addition to the plant-based bars and bites that we currently manufacture. We are pleased to bring forward this opportunity to add value to our clients and shareholders alike. In light of recent announcements we have made in regard to manufacturing and distribution agreements, we aim to see business scale significantly."

The group's co-founder Bryan Carson added: "Our ability to manufacture these Australian products in Canada results in operational efficiencies and scalability. We anticipate that our costs to upgrade the facility for these new product lines is a fraction of the capital costs required to build a new facility. We see this as the quickest path to growth."

Under the placing, the company will issue up to 50 million units at C$0.05 each and each unit will comprise one Naturally Splendid common share and one-half of a share purchase warrant.

Each warrant entitles the holder to purchase one further common share at C$0.12 per share for two years from issue.

Naturally Splendid will have the right to accelerate the expiry date of the warrants if, at any time, the average closing price of its shares is equal to or greater than C$0.35 for 10 consecutive trading days.

Proceeds will be used for the "expansion of Naturally Splendid's existing facilities, product development including clinical trials and working capital purposes", it added.

Contact the author at giles@proactiveinvestors.com

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