Vancouver, BC-based superfoods company Naturally Splendid Enterprises (CVE:NSP)(OTCQB:NSPDF) said it has signed a strategic alliance with Saskatchewan-based Nature's Health Products Canada to capitalize on opportunities to sell bulk volumes of its HempOmega product to selected clients.
Under the three year "contractor agreement", Nature's Health, a member of the POS Group of Companies, will introduceNaturally Splendid to potential purchasers of HempOmega to allow for the negotiation of sales agreements.
POS Bio-Sciences, an affiliate of Nature's Health and a custom manufacturer, has been working with Naturally Splendid's partner Boreal Technologies over the last 18 months to fine tune the manufacturing process for the product.
HempOmega is a hemp-based, omega 3 product that is part of Naturally Splendid's agreement with Boreal Technologies to market Boreal's full range of plant-based omega 3 products throughout North America.
The product is expected to sell as an additive to supplement a wide variety of existing food and beverage products, as well as a stand-alone omega 3 product. The line is based on Boreal's method to convert plant-based omega oils into powder and aqueous forms without actually changing the composition of the oil, leaving all the benefits of omegas intact.
Naturally Splendid said potential markets for HempOmega include human products as well as commercial poultry and beef feed and pet food ingredients. A recent study at the University of Manitoba showed a sharp increase in the natural omega content of eggs from chickens that consumed the HempOmega plant-based product.
"During the product development process, it became clear that HempOmega was a unique business proposition," said POS Bio-Sciences' CEO Dale Kelly. "We believe it is ideal for several of our existing clients and allows POS to explore new markets and opportunities created with this omega technology."
The parties said they have already identified potential clients in the animal feed and pet food sectors who have expressed interest in HempOmega.
"The strategic alliance with POS has accelerated the opportunity to present HempOmega to a wide range of clients, globally, without incurring significant capital costs for manufacturing infrastructure, or the delay in time that constructing such a facility would take," added Naturally Splendid's CEO Craig Goodwin.
Nature's Health Products Canada, founded in 2012, is responsible for commercializing internal POS research through ingredient marketing and distribution. It works with global distributors to market POS's internally developed ingredients and help link clients.
POS operates two facilities in Saskatoon, and conducts a wide range of R&D projects related to bioprocessing industries such as food ingredients, nutraceuticals, biofuels, functional foods, skin care and more.