The product, called HempOmega, is said to be rich in omega 3 – the benefitial fatty acid – and with support from the Saskatchewan Agri-Value Initiative (SAVI) it will be the subject of product development activities over a three month period.
According to the grant arrangements SAVI will cover half the product development costs with Naturally Splendid. The project will take place at the Saskatchewan Food Industry Development Centre, in Saskatoon.
HempOmega will be incorporated into a number of food applications as part of the project. These include functional foods and supplements, as well as nutraceutical innovations, energy drinks and bars, diary and baked goods.
The project will also look at applications in pet food and livestock feed.
Naturally Splendid highlighted third-party research which indicates the global omega-3 ingredients market was worth US$2.7bn in 2014 and could reach US$7.4bn by 2021.
"We are very excited about the HempOmega evaluation project underway at SFIDC,” said Craig Goodwin, Naturally Splendid chief executive.
He describes the grant as a “crucial next step” for the company and its product.
“We already know that HempOmega has shown superior bioavailability and sustainability of omega fatty acids and with the data from this project, we will understand how to incorporate it into a wide range of food products.
“Programs such as SAVI support our continued mission of becoming a leading provider of value-added, plant-based nutritional ingredient solutions."
In Toronto, Naturally Splendid shares were up 2 cents, 7.4%, trading at 29 Canadian cents each.