TORONTO, ONTARIO–(Marketwired – Dec. 2, 2015) – Nutritional High International Inc. (the “Company” or “Nutritional High“) (CSE:EAT)(OTCQB:SPLIF) is pleased to provide a financial and product update.
Financing and Financial Update
The Company is pleased to announce a $350,000 reduction in the first secured promissory note registered against its Pueblo, Colorado, facility as result of conversions at $0.06/share, as noted in the Company’s financial statements for the period ended July 31, 2015.
Remaining liabilities against Pueblo are a third party first secured liability of $100,000, and a second secured liability due to directors of the Company of $150,000. A broker’s price opinion commissioned by the Company at the request of potential lenders demonstrates a significant increase in value of the Pueblo property due to improvements made to the property. As a result, management believes that significant additional secured debt financing can be raised against the property.
In addition to its debt financing initiative, the Company is conducting advanced discussions regarding a joint venture in the Pueblo, Colorado facility that would provide significant financial resources towards Company operations.
Subsequent to year-end, the Company received an additional $227,000 in cash via $120,000 in warrant conversions and an additional $107,000 in HST refunds.
Pueblo, Colorado Extraction Facility Build-Out
Palo Verde LLC (the Company’s licensed Colorado tenant) continues to work toward the completion of the build-out of the Company’s oil extraction facility and commercial kitchen in the Pueblo, Colorado. While the municipal business licensing and building permit process took longer than expected, Palo Verde has secured all local permits and business licensing required to operate. Palo Verde expects to commence oil extraction operations in calendar Q1 of 2016, subject to the timing of final property inspection by local authorities. Manufacturing of edible products is planned to commence shortly thereafter.
Once the extraction facility is operational, Palo Verde will manufacture various extract products which will include pills, tinctures, and vape cartridges, and will also sell marijuana oil extracts on a wholesale basis.
Hemp Product Launch
As announced in the November 12, 2016, press release the Company’s roll out of the first three products in its Active Hemp Line is underway. Initial products being made available to consumers in California later this month include capsules, push caps for water bottles, and a push cap formulation for post-exercise recovery called Rapid Recovery. In addition, the Company is taking steps to commence sales of these products in Colorado in early 2016. In particular, the Company will target sales to marijuana dispensaries in Colorado, further developing sales channels for the Company’s marijuana oil and edible brands.
The Company wishes to provide the following additional updates:
- Work with Canopy is ongoing as the Company assists them in the development of their oil and extract products.
- The Company has retained the services of a brand and marketing consultant. The consultant will assist the Company in developing an integrated strategy for creating brand awareness and market acceptance for its products being launched now through the second quarter of 2016, including the Company’s Active Hemp line of nutritional supplements and extracted oil and infused products containing THC in Colorado.
- Following the closing of the acquisition of the Lawrenceville, Illinois, property designated to house the Company’s planned medical marijuana dispensary (see the November 26, 2015, press release), the Company is organizing to commence renovations. The Company aims to complete construction in the calendar first quarter of 2016, contingent on the date of the final inspection by the Illinois Department of Financial and Professional Regulation.
CEO, David Posner, commented: “Our team has made exceptional strides in reducing debt, advancing our Colorado and Illinois business plans, and completing development of our first three hemp products. I am very pleased with the milestones we have met to-date and look forward to 2016, which I believe will be transformative for the Company and the industry.”
About Nutritional High International Inc.
Nutritional High is focused on developing, acquiring and designing products and brands in the hemp and marijuana-infused edible products and oil extracts sectors for medical and adult recreational use. The Company works exclusively in jurisdictions where such activity is permitted and regulated by state law, through entities that hold a valid license to produce marijuana-infused edible products and to distribute, and dispense marijuana products.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR OTC MARKETS GROUP INC, NOR ITS REGULATIONS SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such statements include submission of the relevant documentation within the required timeframe and to the satisfaction of the relevant regulators, completing the acquisition of the applicable real estate and raising sufficient financing to complete the Company’s business strategy. There is no certainty that any of these events will occur. Although such statements are based on management’s reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances.
Company’s securities have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act“), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. Persons”, as such term is defined in Regulation S under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.
Additionally, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. All forward- looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.