Naturally Splendid $NSP Private Placement of $1.5MM and Expansion of Pitt Meadows Facility

Naturally Splendid(TSX.V:NSP) (OTCQB:NSPDF) (Frankfurt:50N)

Naturally Splendid Enterprises Ltd. is pleased to announce the terms of a private placement for up to $1.5 million comprising of up to 10,000,000 units at a price of $0.15 per Unit. Naturally Splendid may increase the size of the private placement to up to $1.75 million, or 11,666,667 Units if Naturally Splendid receives excess interest in the private placement.

The Company is pleased to advise that $1,000,000 CDN of the private placement has been subscribed to by funds managed by Goodman and Company Investment Counsel Inc., a wholly-owned subsidiary of Dundee Corporation and $500,000 CDN through retail investors.

Each Unit offered will be comprised of one common share of Naturally Splendid and one-half of one common share purchase warrant, with each whole Warrant entitling the holder to purchase one additional common share at $0.22 per share for a period of two years from the date of the issue. Naturally Splendid will have the right to accelerate the expiry date of the Warrants if, at any time, the average closing price of Naturally Splendid’s common shares is equal to or greater than $0.35 for 10 consecutive trading days. In the event of acceleration, the expiry date will be accelerated to a date that is 30 days after Naturally Splendid issues a news release announcing that it has elected to exercise this acceleration right.

Proceeds of the Offering will be used for expansion of Naturally Splendid’s existing facilities and working capital purposes. Naturally Splendid may pay finders a finder’s fee in cash and/or share purchase warrants. Closing of the private placement is subject to TSX Venture Exchange approval.

Naturally Splendid is finalizing details to secure additional industrial manufacturing space in Pitt Meadows adjacent to their existing packaging and distribution facility. The combined total space under lease will be17,000 square feet. The additional space will be utilized in part for the strategic consolidation of the recently acquired Prosnack within existing operations; thus, reducing overheads and increasing net revenues.

“The process has been initiated to relocate the existing Prosnack operations, including their R&D facilities, to our packaging and distribution facility in Pitt Meadows. The Company will realize significant savings in several areas including; reduced lease payments, a modern R&D facility, efficiencies in shipping logistics and optimizing the workforce. Once the relocation has been completed, we are forecasting gross savings in excess of $290,000 annually. As NSE identifies suitable acquisitions, we will continue to replicate this process and combine synergies to reduce overheads and increase net revenues.”

-Mr. Dave Eto, CEO of Naturally Splendid

The Naturally Splendid Pitt Meadows facility, currently houses approximately $2,000,000 CDN of automated packaging equipment in a HACCP approved packaging room, warehousing and a distribution centre. The Prosnack relocation involves moving the bar manufacturing facility with approximately $300,000 CDN of processing equipment, the R & D department, warehouse area and office space. Once completed the relocated Prosnack facility will be an SQF Level 2 certified facility. This highly accredited certification enables Prosnack to qualify to bid on large national chain opportunities.