Nutritional High Announces Oregon & Washington Project Updates and Addendum to Purple Haze License Agreement
TORONTO, Feb. 15, 2018 (GLOBE NEWSWIRE) — Nutritional High International Inc. (the “Company” or “Nutritional High“) (CSE:EAT) (OTCQB:SPLIF) (FRANKFURT:2NU) is pleased to announce an update regarding the build-out at its facility in the City of La Pine, Oregon and provide an update regarding the Company’s product rollout in Washington State. The Company also wishes to announce the entry into an addendum to Purple Haze License Agreement.
Oregon Project Update
In Oregon, the Company engaged a contractor in late fall of 2017 who has been working to complete the remodeling of the La Pine facility. To date, the contractor has completed plumbing, wall modifications and floor drains, and is in the process of completing the electrical work and security surveillance installation. The Company had minor construction delays due to weather, but is on track to complete the build-out in calendar Q1 of 2018 and schedule the necessary inspections.
After completing the construction and equipment installation, the facility will be inspected by the Oregon Department of Agriculture, and Oregon Liquor Control Commission (“OLCC“), upon successful completion of which the recreational processing license (“License“) from the State will be granted. The final steps in the local permitting process include the inspection by the Building Department of Deschutes County and certain departments of the City of La Pine, including the fire Chief, Planning Department and the City Manager.
The Company has completed the design of FLI-branded packaging that is compliant with the OLCC regulations in order to accelerate the launch of its products shortly after licensing is granted. The Company is also in the process of interviewing potential candidates for management, extraction specialist and sales roles for its facility.
Washington Project Update
As announced in Company’s press release dated October 30, 2017, Nutritional High has entered into an agreement to lease the real estate property in Bellingham, WA (“Bellingham Property“). The Bellingham Property has been sub-leased to Mt. Baker Greeneries, LLC (“Mt. Baker Greeneries“) which holds a Tier 2 Producer and Processor Licenses issued by the Washington State Liquor and Cannabis Board (“WSLCB“).
Mt. Baker Greeneries has been focused on renovating and upgrading its facility to enable Mt. Baker Greeneries to implement Nutritional High’s SOPs, know-how and infusion techniques. These upgrades and improvements will allow Mt. Baker Greeneries to manufacture high-quality distillate cannabis oil that would be used to fill FLI-branded vape cartridges, including a new Live Resin line. Nutritional High and Mt. Baker Greeneries have also identified the equipment upgrades that are required for the Bellingham Property to implement the necessary extraction and manufacturing techniques.
Jim Frazier, CEO of Nutritional High commented: “We’re excited to move another step closer to establishing operations in the Pacific North West. The Oregon and Washington legal cannabis markets represent a lucrative opportunity for premium-focused concentrate and edibles manufacturers. Nutritional High is planning to make its debut in these markets by introducing its flagship FLI vape cartridges, followed by other products that we have developed or licensed from branding partners.”
Addendum to Purple Haze License Agreement
The Company has entered into an addendum (the “Addendum”) to the Company’s license agreement (“License Agreement”) with Purple Haze Properties LLC (“PHP”) effective January 25, 2018. Pursuant to the Addendum, the Company has agreed to satisfy its 2017 License Agreement obligations to PHP and to meet its 2018 License Agreement obligation via issuance of 750,000 common shares in the capital of the Company (“Common Shares”) to PHP. The Addendum also includes two one-year options to extend the License Agreement at the Company’s sole discretion and provides that a portion of the stock issuances and all the owed monetary royalties shall be placed in an escrow account for contingencies.