OREANDA-NEWS. Naturally Splendid Enterprises Ltd. is pleased to announce its unaudited financial results for the six months ended June 30, 2016. All amounts are in Canadian dollars and are prepared in accordance with International Financial Reporting Standards.

Naturally Splendid recorded $3,657,852 in revenue during the second quarter of 2016 (2016 YTD: $5,097,880).  This represents a significant increase in revenue compared to the second quarter of 2015, which amounted to $70,459 (2015 YTD: $100,952).  A further $712,000 of sales was recorded as deferred revenue as the product had not shipped as of June 30, 2016.  The significant increase in top line revenue was due to bulk sales of hemp products to Korea and POS BPC commencing operations in the second quarter of 2016.

Gross profit for the second quarter of 2016 amounted to $1,596,383 (2016 YTD: $1,676,736) and net income of $885,301 (2016 YTD: $427,009).  These amounts also represent significant increases over the 2015 second quarter gross loss of $35,563 (2015 YTD: $28,686) and net loss of $905,485 (2015 YTD: $2,205,288).

Naturally Splendid CEO Mr. Craig Goodwin states, "We’ve experienced significant growth in gross revenue from 2014 and 2015 to where we are at the end of the second quarter in 2016. More importantly, Naturally Splendid has achieved net income in Q2. This represents a new and impressive milestone for us, which we plan to build on through 2016 and into the future. With exports, processing and our retail lines performing well, we now plan to focus more attention and resources to pursue the HempOmega® and cannabinoid markets.”

Naturally Splendid’s unaudited condensed financial statements and management’s discussion and analysis have been filed on Naturally Splendid’s profile on the SEDAR website.

Private Placement

Naturally Splendid also announces that it has closed a second tranche of its previously announced private placement financing by issuing a total of total of 175,000 units (the “Units”) for gross proceeds of $47,250.  In total, Naturally Splendid has issued 3,077,168 Units for total gross proceeds of $830,835.

Each Unit is comprised of one common share of Naturally Splendid and one-half of one common share purchase warrant (“Warrant”), with each whole Warrant entitling the holder to purchase one additional common share at $0.35 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 $0.45 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.

In connection with the second tranche of the financing, Naturally Splendid paid finders a cash commission totaling $4,725 and issued a total of 17,500 finder’s warrants.  Each finder’s warrant is on the same terms as the Warrants.

The securities issued under the financing will be subject to a hold period expiring on December 31, 2016 pursuant to applicable securities laws and the rules of the TSX Venture Exchange.

Proceeds of the financing will be used for product development and working capital and corporate purposes.

The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the “U.S. Securities Act”) or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release does not constitute an offer to sell or a solicitation of an offer to buy any of Naturally Splendid's securities in the United States.