Naturally Splendid USA Secures Agreement to License Hemp and Cannabinoid Extraction and Formulation

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Nov. 20, 2014) - Naturally Splendid Enterprises (the "Company") (TSX VENTURE:NSP)(OTCQB:NSPDF)(FRANKFURT:50N) is pleased to announce Naturally Splendid USA Ltd., its wholly owned subsidiary, ("Naturally Splendid USA") has entered into a Novation Agreement with Full Spectrum Laboratories Limited ("FSL"), Boreal Technologies, Inc. ("Boreal") and Naturally Splendid whereby Boreal has agreed to assign, and Naturally Splendid USA has agreed to assume, all rights, title and interest in and to a Restated and Amended License Agreement between FSL and Boreal (the "License Agreement").

Under the terms of the Novation Agreement, Naturally Splendid USA has agreed to pay $725,000 to Boreal and Naturally Splendid has agreed to issue to Full Spectrum Partners, LLLP (an entity controlled by FSL) such number of common shares of Naturally Splendid equal to $1,025,000 divided by the greater of (i) $0.35, or (ii) a 20% premium above the closing price on closing of the transaction.

On closing of the Novation Agreement, Naturally Splendid USA will be the licensee under the License Agreement. The License Agreement provides that the licensee has a worldwide license to manufacture, commercialize and sell products based on the follow proprietary technology of Full Spectrum:

(a)	on an exclusive basis, (i) the terpene, hemp oil and cannabinoid formulation technology, (ii) the omega formulation technology, (ii) protein formulation technology, (iv) the cannabinoid technology, and (v) the tongkat ali formulations; and
(b)	on a non-exclusive basis, (i) the Supercritical CO2 and plant oil extraction technology, (ii) genetic plant and artificial seed technology, (iii) biosynthesis of cannabinoids, and (iv) microencapsulation of cannabinoid oils.
	(the "License")

In consideration of the License, the licensee will be required to pay to FSL, on a quarterly basis, a 4.5% gross revenue royalty. Commencing after November 17, 2016, the licensee will be obligated to pay a minimum gross revenue royalty of USD $1.6 million. Notwithstanding the foregoing, no royalties will be payable to FSL on the first $1,750,000 of royalties payable under the License Agreement.