Nutritional High Announces Closing of Private Placement
TORONTO, July 25, 2019 (GLOBE NEWSWIRE) — Nutritional High International Inc. (“Nutritional High” or the “Company“) (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) is pleased to announce that further to the press release dated May 29, 2019, the Company has closed the second tranche of its previously announced non-brokered private placement (the “Offering“). The Company issued 2,995,650 units (each, a “Unit“) at a price of C$0.20 per Unit (the “Issue Price“), for gross proceeds of C$599,130.
Each Unit consists of one common share (each, a “Common Share“) of the Company, and one common share purchase warrant (each, a “Warrant“). Each Warrant entitles the holder thereof to purchase one Common Share at a price of C$0.30 per Common Share, for a period of thirty-six (36) months (the “Expiry Date“) from the date of issuance. The Company reserves the right to accelerate the Expiry Date at any time, following the date that is four months and one day (the “Date“) from the date of issuance, to thirty (30) days from delivery of such written notice, in the event that the Common Shares trade on the Canadian Securities Exchange at a price per Common Share that is equal to or above C$0.60 per Common Share for twenty (20) consecutive trading days at any time after the Date.
The Company intends to use the net proceeds from the Offering for building out facilities, expansion in the California market, to pursue potential acquisitions and general corporate and working capital purposes.
All securities issued in connection with the Offering are subject to a four month and one day hold period from the date of issuance in accordance with applicable securities laws.
In connection with the Offering, the Company paid a finder a cash fee of C$12,400 and issued 62,000 finder warrants (each, a “Finder Warrant“). Each Finder Warrant entitles the holder thereof to purchase one Unit of the Company at the Issue Price for a period of thirty-six (36) months from the date of issuance.
The Company would also like to provide an update on its law suit against TKO Products LLC (the “Borrower“), for recovery of monies lent. The Borrower has, as expected (see press release dated May 27, 2019) filed its threatened cross-claim in response to the Company’s action for repayment. The Company believes the claim to be unsubstantiated and without merit, and will vigorously defend itself and push to collect the funds it is owed.