Vancouver-based bio-tech firm Naturally Splendid has acquired Victoria’s Chi Hemp Industries, an online hemp company.
The move means Chi’s Victoria warehouse operation, which distributes hemp seeds, oil and protein, will be replaced by Naturally Splendid’s 7,000-square-foot facility in Burnaby.
“We have identified multiple opportunities in the retail hemp food sector. We will continue to grow our existing retail lines and pursue other areas of expansion for our retail divisions,” Naturally Splendid vice-president Bryan Carson said in a statement Thursday.
“The Chi team will be instrumental in assisting Naturally Splendid achieve these goals and we are excited to have them play a major role in our growth strategy moving forward.”
The sale will be completed by Naturally Splendid issuing $75,000 in common shares to Chi shareholders and paying another $75,000 in cash to them as well.
The cash payment will be made in three transactions within nine months of closing.
Under terms of the sale Chi shareholders Marco Pimentel and Agnieszka Wojdyla, will enter into a one year consulting agreement with Naturally Splendid and will work on growing the online business.
Since it was founded in 1998, Chi has sold over one million pounds of hemp products.
Over the last year the company reported $300,000 Cdn in sales.
Naturally Splendid is working on commercializing a new generation of plant-derived, bioactive ingredients, nutrient-dense foods, and related products.
The company has been building up a portfolio of patents and intellectual property focused on the commercial uses of industrial hemp and non-psychoactive cannabinoid compounds.