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FOOD & BEVERAGES | Candy & snackfoods
prosnack.com

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Acquired | Acquired

About Prosnack Natural Foods

Prosnack Natural Foods creates high protein fruit and nut energy bars and single serve high protein instant oatmeal in a cup. Its snacks contain whole ingredients rich with nutrients and natural protein to help the consumer achieve a healthy lifestyle.

Prosnack Natural Foods Headquarter Location

#108 375 Lynn Avenue

North Vancouver, British Columbia, VJ7 2C4,

Canada

604-980-6160

Latest Prosnack Natural Foods News

Naturally Splendid Enterprises : Q4 2020 MD&A

May 1, 2021

05/01/2021 | 11:41am EDT Message : 1 This Management's Discussion and Analysis ("MD&A") for Naturally Splendid Enterprises Ltd. ("Naturally Splendid" or the "Company") has been prepared as of April 30, 2021. It should be read in conjunction with the unaudited consolidated interim financial statement of the Company for the year ended December 31, 2020 (the "Financial Statements") and related notes thereto, which have been prepared in accordance with International Financial Reporting Standards, ("IFRS") as issued by the International Accounting Standards Board. All dollar figures stated herein are expressed in Canadian dollars, unless otherwise specified. Additional information relating to the Company is available on SEDAR at www.sedar.com. Statements in this MD&A that are not historical facts are "forward-looking statements" that are subject to risk factors set out in a cautionary note contained herein. Readers are cautioned not to put undue reliance on forward-looking statements. Forward-looking statements is often, but not always, identified by the use of words such as "seek", "anticipate", "budget", "plan", "continue", "estimate", "expect", "forecast", "may", "will", "project", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar words or phrases (including negative variations) suggesting future outcomes or statements regarding an outlook. Forward-looking statements involves known and unknown risk, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. The Corporation believes the expectations reflected in the forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and readers are cautioned not to place undue reliance on forward-looking statements contained in this MD&A. COMPANY OVERVIEW Naturally Splendid develops, manufactures, and distributes nutritional, natural products focused on plant- based ingredients. The Company has established multiple Divisions developing, manufacturing and distributing mainstream plant-based foods, as well as nutritional and sports related products. The Company owns a food manufacturing facility, Prosnack Natural Foods and is a joint venture partner in Plasm Pharmaceutical Inc. Additionally, the Company owns several established plant-based brands that are primarily for human consumption. However, the Company also owns pet lines for the canine and equestrian markets as well. Naturally Splendid owns 100% of Prosnack Natural Foods (Prosnack) which operates a Safe Quality Food (SQF) certified manufacturing facility in Pitt Meadows BC. Prosnack manufactures Company owned brands as well as provides contract manufacturing for a variety of SME Clients. The Company manufactures a wide range of bars and bites in our 20,000 square foot, Safe Quality Food (SQF) certified, food manufacturing facility, located in Pitt Meadows, BC. For products in our product portfolio that are not manufactured in our own SQF food manufacturing facility, the Company has forged strategic relationships with several contract manufacturers that are utilized for certain products/ingredients. In this regard, Naturally Splendid has secured the exclusive Canadian distribution rights to a line of plant-based entrees from one of Australia's largest plant-based food manufacturers. This line of plant-based entrees will be marketed under the Natera Plant Based Foods banner. Naturally Splendid will own 16% of Plasm Pharmaceutical Inc. (PLASM) upon the completion of a joint venture agreement financial terms. 2 PLASM is a joint venture formed for the purpose of commercializing multiple uses of the drug CavaltinibTM that has been licensed to PLASM. Health Canada has authorized PLASM to conduct a phase 2 clinical trial for a potential COVID-19 treatment. CavaltinibTM is a plant-based drug originating from curcumin, being derived through patented extraction technology. In addition to use as a potential COVID-19 treatment, additional indications from the phase 2 clinical trial with the target drug CavaltinibTM, are anticipated to potentially present additional applications in the area of respiratory ailments as well as inflammatory conditions. Naturally Splendid has several Company owned brands featuring plant-based ingredients including: NATERATM Plant Based Foods: NATERATM Hemp Foods; NATERATM Sport; NATERATM FX; CHIITM Hemp Foods; Elevate MeTM protein bars; Woods WildTM mushroom fortified bars; Pawsitive FXTM for the canine market; and Timer's NutritionTM for the equestrian market. The Company is committed to providing plant-based products to ensure a better quality of life for humans, pets, livestock and the environment. Historically, distribution has largely been in Canada. While this remains true, the Company has expanded its distribution network and currently exports into the United States, Australia and South Korea. PUBLIC MARKETS The Company's common shares are listed on the TSX Venture Exchange under the symbol "NSP" and on the Frankfurt Stock Exchange under the symbol "50N". The Company is also quoted on the US OTCQB board under the symbol "NSPDF" HISTORY The Company's initial foray into plant-based nutritional products began over twelve years ago, focusing at that time on hemp. The Company has established a business strategy developing mainstream and niche plant-based products, designed for grocery and the sports & active lifestyle markets. The Company has expanded the range of plant-based products to include nutraceutical and pharmaceutical applications. Previously, the Company was positioning for the potential opportunities in the evolving cannabis edibles market. At that time, the Company anticipated the cannabis edibles opportunity represented significant growth and revenue potential. However much of the cannabis industry continues to be challenged with finding viable economic models and the edibles market has simply not met industry forecasted expectations. Regulations surrounding cannabinoid edibles continue to evolve limiting the commercialization of such products. Therefore, the Company has suspended business activities in the cannabis edibles market as of April of 2020. 3 This decision to suspend pursuing the cannabis edibles market was made for several reasons, including the continued uncertainty surrounding cannabis edible regulations in Canada as well as abroad. The Company continues to manufacture products focused on plant-based ingredients. The plant-based market has proven to be one of the fastest growing consumer trends over the past two years and is growing at a rate outpacing most every other food consumer category. The strategic decision has been made to focus on the fast-growingplant-based consumer markets as plant- based products are rapidly going mainstream and Naturally Splendid has been positioning for this opportunity over the years. Revenue from its food manufacturing business from is generated from two diverse, yet complimentary revenue streams. Contract manufacturing represents 62% of revenue, while the remaining 38% can be attributed to Company Brands such as NATERA™ Sport, Elevate Me™ and Woods Wild Bar™. Naturally Splendid product lines are not limited to in-house manufacturing. The Company has several strategic relationships with manufacturers that produce additional products for the sports and nutraceutical markets, the pet market, as well as currently meets demand for Natera Plant Based Foods through a strategic relationship with our Australian manufacturers. OPERATIONS Prosnack Natural Foods Inc. Safe Quality Food Certified (SQF) Food Manufacturing Facility, Pitt Meadows, BC The Company owns 100% of Prosnack Natural Foods Inc. ("Prosnack"), a producer of Elevate Me™ energy bars and products as well as private label foods and related production equipment. The Company has purchased additional manufacturing and packaging equipment to increase both production capacity and margins. This additional investment of approximately $250,000, increases capacity to a total of over 2,500,000 bars and bites a month. By adding a second shift, capacity increases to over 5,000,000 bars and bites per month. With additional manufacturing and packaging equipment, it is anticipated the range of clients the Company can service, will be expanded. The Company has evolved and differentiated itself by expanding its ingredient offerings to include a wide range of plant-based ingredients while providing services that include custom formulation with our in- house R&D Department and contract manufacturing in our Safe Quality Food (SQF) food manufacturing facility. Additionally, the Company further distances itself from competitors by utilizing our proprietary novel ingredients like HempOmegaTM and our unique hemp protein isolate. With the surge in plant-based nutrition driven by consumer demand, the Company will initiate product development with our internal R&D department with a focussed approach developing a range of plant-based products that utilize these unique ingredients- ultimately creating novel value-added consumer products. Recognizing the overall growth in plant-based nutrition, the Company has expanded its ingredient and product offerings resulting in commercially successful bars and bites being distributed in North American with plans to expand internationally. 4 Hemp remains a key ingredient in many of the Company's recipe formulations, however, the Company has expanded its roster of plant-based offerings far beyond hemp-based products. With certifications such as Safe Quality Food (SQF), HACCP and cGMP, clients are assured the products produced in our facilities meet international standards for food safety and quality. Our SQF certification creates a competitive advantage for the Company to secure significant contract manufacturing clients as well as creates the opportunity to take Company branded products to retailers such as Whole Foods, Costco and others who demand products be manufactured in highly certified facilities. The Company currently manufactures a wide variety of bars and bites for their own in-house brands such as NATERA™ Sport KEY-TO-LIFE bars in four flavours, Elevate Me™ with over a dozen SKUs, as well as four mushroom fortified bars for the Woods Wild Bar™ line. Pronack provides contract manufacturing services for a range of select clients producing nutritional bars and bites that are distributed in thousands of retail outlets in Canada. As consumer demands continue to increase for more plant-based products, outpacing traditional food channels, the Company continues to expand its ingredient and formulation offerings to include a wider variety of plant-based proteins and omegas and will continue developing products focusing on plant-based ingredients. Plasm Pharmaceutical Inc. Plant-based pharmaceuticals for potential treatment of COVID-19 and other inflammatory ailments On September 1, 2020, the Company entered into a Joint Venture Agreement ("JV Agreement") with Biologic Publishing Inc. ("Biologic") to form a joint venture for the purpose of further developing and pursuing phase 2 clinical studies, utilizing one of Biologic's patented technologies as a candidate for a potential COVID-19 treatment. PLASMTM has been conceived and assembled for the purpose of further developing and carrying out clinical trials on the CavaltinibTM-Branded Drug(s) in the specific Field described in the License Agreement. The Field includes but is not limited to treatment and/or prophylaxis of respiratory indications, including COVID-19. The Company will own 16% of the joint venture as well as a 10% royalty on gross sales of all products and applications arising from the clinical study. Biologic will own 82% of the joint venture with the remaining 2% ownership assigned to key personnel within Biologic at their discretion. The Company will invest $500,000 into the joint venture for the purposes of conducting a Health Canada approved phase 2 clinical trial gauging the effectiveness of CavaltinibTM as a potential treatment for COVID-19. The Company will earn into the 16% ownership of the joint venture upon payment of the $500,000. Initially, the Company had agreed to make payment in five equal tranches as follows: First tranche of $100,000 paid to PLASM on or before December 15, 2020 (not met) Second tranche of $100,000 paid to PLASM on or before January 15, 2021(not met) Third tranche of $100,000 paid to PLASM on or before February 15, 2021(not met) Fourth tranche of $100,000 paid to PLASM on or before March 15, 2021(not met) Fifth tranche of $100,000 paid to PLASM on or before April 30, 2021(not met) 5 This is an excerpt of the original content. To continue reading it, access the original document here . Attachments

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Expert Collections containing Prosnack Natural Foods

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Prosnack Natural Foods is included in 2 Expert Collections, including Food & Beverage .

F

Food & Beverage

2,541 items

C

Consumer Packaged Goods ( CPG )

4,148 items

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