Shares of Naturally Splendid Enterprises Ltd. (TSX-Venture:NSP) (OTCQB:NSPDF) are perking higher as the company announces that it has secured an initial Purchase Order for a National Food Retailing / Branding company for a new retail energy bar. This initial Purchase Order (“PO”) is in excess of $73,000 and is expected to be the first in a series of purchase orders for this client, as they expand their retail business across Canada and into the U.S.
Commenting on today’s PO announcement, Alan Maddox, Naturally Splendid's Executive Vice-President of Sales, stated, "With the expanded R&D and manufacturing capabilities, the Company is well positioned, as an innovator in the bar/snack sector and continues to expand our customer base, with more exciting news to come. The investment in R&D and manufacturing is already paying dividends.
"In the last 3 months we have secured national accounts that include a five-year manufacturing contract estimated at $5,000,000 Canadian, a $75,000 purchase order from a private label client who is launching in a national convenience store chain that has over 500 locations in Canada, as well as the $100,000 purchase order with a renowned national distributor in Canada for its NATERA® and Elevate Me™ brands and now most recently, another significant client with this most recent purchase order.
"We are most definitely reaping the rewards of successful execution of our strategic plan, as we gain momentum in the Private Label and Co-Packing, along with national distribution of NATERA®."
The Elevate Me™ brand and private label clients can be found in over 2,000 retail stores, including major retailers such as Metro, Whole Foods, Save On Foods, Sobeys, Safeway, IGA, Natures Fare, London Drugs, Thrifty's and Rexall.
Even though shares of NSP are off substantially from their mid-January highs, today’s news has so far put a floor on recent declines. In fact, shares have bounced off a key support level at around $0.14 which has held up as support on multiple occasions since mid-2017 leading us to believe that the downside risk is likely minimal at these levels. Perhaps this announcement as well as recent positive fundamental developments will finally swing the sentiment pendulum in favor of the bulls.
