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Naturally Splendid Enterprises Ltd
Symbol NSP
Shares Issued 101,548,454
Close 2018-10-23 C$ 0.185
Market Cap C$ 18,786,464
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Naturally Splendid signs HempOmega sales deal with Sipp

2018-10-24 09:40 ET - News Release

Mr. Douglas Mason reports

NATURALLY SPLENDID ANNOUNCES PROPRIETARY HEMPOMEGA APPROVED FOR HEMP FORTIFIED BEER FORMULATIONS AND COMMENCES PRODUCTION

Naturally Splendid Enterprises Ltd. has signed an exclusive sales agreement with Sipp Industries Inc., which has received approval in the states of Colorado and Illinois to include HempOmega as an ingredient in its custom-formulated hemp beer and has produced its Major Hemp Brown Ale and newly developed Major Hemp H-IPA brands to multiple locations throughout Colorado and Illinois.

Under the terms of the agreement, Naturally Splendid grants Sipp limited exclusive rights to purchase HempOmega for use as a beer beverage additive in its Alcohol Tobacco Tax Trade Bureau-approved (TTB) hemp beer recipe and to sell its TTB-approved hemp beer recipe to third party beverage companies in Colorado and Illinois on an exclusive basis, pending meeting certain volume and activity levels. Additionally, Sipp is in the process of applying to TTB for regulatory approvals to include HempOmega in beer formulations in California and Texas and will be granted limited exclusive rights for those states upon final approval from TTB for inclusion of HempOmega into beer formulations.

Naturally Splendid chief executive officer Doug Mason stated: "We are more than pleased to see the success Sipp has attained with our proprietary HempOmega ingredient in their beer formulations after significant testing. After a year of testing, Sipp has developed a hemp beer with broad consumer appeal. Additionally, Naturally Splendid is pleased to have formed a strategic relationship with Sipp that will begin to aggressively market HempOmega as an ingredient to both craft and national beer companies in the United States."

To continue catering to the growing Colorado market, Sipp Industries initiated production of Major Hemp Brown Ale with Denver-based brewing partner Sleeping Giant Brewing Company. Based on forecasted demand, the companies have made contingency plans to more than triple production to fulfill expected demand. Over the course of 2017 and 2018, Major Hemp Brown Ale quickly gained in popularity throughout the state of Colorado, expanding to over 50 new restaurants, bars and establishments. Major Hemp Brown Ale has been featured in Denver's Westword, has hosted two consecutive 4/20 events and continues to receive reorders from existing customers.

Sipp Industries will continue working with partners to distribute Major Hemp Brown Ale throughout the state of Colorado. Sipp believes it will continue to satisfy current orders and significantly grow its list of recurring customers over the course of the year.

Ted Jorgensen, president of wholly owned subsidiary Major Hemp, commented: "As we approach our third year in the hemp beer business we couldn't be more excited about 2018 and beyond. We have a loyal and growing customer base that is opening up opportunities for our Major Hemp-branded beers nationally. The company is currently speaking with additional multistate beer distributors to expand the market for Major Hemp Brown Ale outside of the state of Colorado." Mr. Jorgensen continued: "We are finalizing logistics and regulatory matters with several opportunities for mass distribution. Additionally, we have a pending purchase order with a third party in the Midwest we are finalizing terms with. There is no shortage of demand for Major Hemp Brown Ale, and we look forward to executing further sales and partnerships over the coming weeks." The company is excited to report it is making plans for production and distribution of Major Hemp-branded beers in the state of California, which is the largest craft beer state in the country, as well as Texas.

Sipp Industries, a multifaceted corporation specializing in technology, manufacturing and distribution of commercial and consumer products, has completed new label designs for flagship hemp beer Major Hemp Brown Ale and newly developed Major Hemp H-IPA. The company is in the process of submitting both labels to the Alcohol and Tobacco Tax and Trade Bureau (TTB) for certificate of label approval (COLA).

About Naturally Splendid Enterprises Ltd.

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 cannabinoid compounds in a broad spectrum of applications.

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