DGAP-News: Naturally Splendid Enterprises Ltd. / Key word(s): Research
Update/Miscellaneous
Naturally Splendid Escalates 2016 Growth (news with additional features)
21.07.2016 / 14:55
The issuer is solely responsible for the content of this announcement.
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Naturally Splendid escalates 2016 growth: New $2.1 million purchase order
shoots growth rate to 3000% since 2015
Material news from Naturally Splendid Enterprises Ltd. (TSX-V: NSP; OTC:
NSPDF; Frankfurt: 50N)
* Following last week's announcement of substantial growth to date in 2016
(+2,350% growth in sales compared to 2015), Naturally Splendid has
announced earlier today the receipt of new, previously unreported purchase
orders totalling $2.1 million CDN
* Therefore, the total value of all purchase orders to date in 2016 exceeds
$9.2 million CDN
* This remarkable sales number already outshines 2015 sales by a staggering
+3,000% (compared to 2014 sales: +3,815%)
* The company is suddenly growing exceptionally fast on a consistent basis
thus far in 2016:
Q1: $1.5 million CDN
Q2: $4.3 million CDN (+187% against Q1)
Q3: $3.6 million CDN (in the first three weeks of Q3)
CEO Craig Goodwin states in today's news:
"We are pleased to continue the pace we are on. We booked gross sales of
$1,455,000 CDN in our first quarter of 2016 (Q1) and recently announced our
second quarter (Q2) gross sales of $4,300,000 CDN. On June 20, 2016 the
Company announced a Purchase Order of $1,450,000 CDN for the third quarter
of 2016 (Q3) and now with this most recent Purchase Order of $2,100,000
CDN, total gross sales to date exceed $9,200,000 CDN. Our goal naturally,
is to have Q3 exceed gross sales of Q2 and we are on a pace to reach that
objective."
With 57.4 million shares issued and outstanding, Naturally Splendid is
currently valued at $15.5 million CDN. If the sales growth rate so far in
2016 is any indication for the remaining months, the company could bag
total sales of around $20 million CDN in 2016: A potential sales growth of
+6,567% against 2015.
With an implied enterprise value ("EV") of $15.5 million CDN and projected
sales of $20 million in 2016, Naturally Splendid currently has an EV/Sales
multiple of only 0.78x. According to data from New York's Stern University,
the following sectors had EV/Sales multiples significantly higher than
Naturally Splendid's current multiple of 0.78x:
Drugs (Biotechnology): 8.32x
Drugs (Pharmaceuticals): 4.76x
Healthcare Products: 3.75x
Average of all sectors: 2.65x
Therefore, when applying a conservative EV/Sales multiple of 2.65x,
Naturally Splendid would trade at $0.72 CDN/share (+167%% from current
market price).
When applying a multiple of 8.32x, as being the case with biotechnology
drugs, Naturally Splendid would be fairly valued at $2.25 CDN/share (+733%
from current level).
In case management succeeds in growing Q3/4 sales figures stronger than
Q1/2, an even higher valuation appears
plausible. As per today's news, Naturally Splendid may exceed expectations
again.
See chart analysis here:
https://static.wixstatic.com/media/68cc1e_2af503e65e5c472f990154b2f41b0851
~mv2.png/v1/fill/w_613,h_492,al_c,lg_1/68cc1e_2af503e65e5c472f990154b2f41b
0851~mv2.png
When looking at the company's share price development over the last two
years, the following remarks can be made:
(1) Volume in Canada and Germany is picking up significantly since last
week's unexpectly announced mammoth sales growth.
(2) Share price appears to have bottomed recently at $0.25 CDN and appears
ripe for another upswing to the $0.48 CDN level.
(3) The explosive spike in share price in early 2015 demonstrates that
similar price action may occur again, especially when rising above the
$0.35-0.48 CDN levels.
(4) MACD indicator looks bullish at the moment and another run up may occur
anytime now.
According to a statement by Naturally Splendid:
"We looked at the history of hemp and came to one clear conclusion - it was
time for a radical change."
The hemp, cannabis and healthcare sector is gaining momentum again, not
only in North America but on a global scale, and as such an increased
investor's interest has been noticed recently and is expected to accelerate
in the foreseeable future.
Naturally Splendid is well-positioned to capitalize on this emerging market
trend as being one of the first pioneering companies generating substantial
sales.
Bottom-line: Naturally Splendid is poised to evolve as a leader in the
global hemp space. The year 2016 is increasingly turning out to become the
long awaited "company-making" year and as such should provide most
upside potential for its shareholders.
Naturally Splendid continues to see increased interest for hemp food
products in Asia. The company has made significant progress in the Asian
region while attending tradeshows as Members of the Canadian Trade
Delegation in Singapore and Seoul and more recently as official Members of
the Premier's Trade Mission to Seoul, Manila and Tokyo, which was lead by
British Columbia's Premier Christy Clark.
Naturally Splendid is positioning itself to export healthy foods and value
added natural formulations globally. The global functional, allergen-free,
organic and other healthy foods market will push through the $1 trillion
(EUR770b) mark for the first time in 2017, as consumer interest in
preventing illness via foods snowballs", says Euromonitor International.
More information on Naturally Splendid's products and markets can be read
in our last week's introductory report, entitled Naturally Splendid
announces 2016 sales figures: Already 2,350% growth since 2015.
Website from Naturally Splendid:
www.naturallysplendid.com
www.hempomega.com
www.simpliingredients.com
www.nateralife.com
www.pawsitivefx.com
www.chii.ca
About Naturally Splendid Enterprises Ltd.
Naturally Splendid 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(R) 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(R) brand of pet care products;
(4) Simlpi Plant-Based Ingredients Division of plant-derived bulk
ingredients including patent-pending
HempOmega(R);
(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.
6) hemp-based cannabinoid nutraceuticals. The company's advanced
technologies, industry expertise, and strategic partners allow for the
creation of customized solutions with a consistent focus on quality and
sustainability.
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Document title: Research Report in English
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21.07.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
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484753 21.07.2016
DGAP-News: Naturally Splendid Escalates 2016 Growth (news with additional features)
| Source: EQS Group AG