Nutritional High Announces an Update on Acquisition of Producer and Processor Licenses in Henderson, Nevada
TORONTO, ONTARIO–(Marketwired – April 12, 2017) – Nutritional High International Inc. (the “Company” or “Nutritional High“) (CSE:EAT)(CSE:EAT.CN)(OTCQB:SPLIF)(FRANKFURT:2NU) is pleased to announce that it has received consent from the State of Nevada Department of Health and Human Services (“Department“) to transfer the provisional producer and processor licenses (the “Licenses“) in Henderson, Nevada to Nutritional High. The Company is currently awaiting an approval from the City of Henderson for the transfer of the business licenses (“Business License“) that underlie the provisional Licenses issued by the Department. The acquisition of the Licenses by the Company will be completed once the Company has received the final approval for the Business License Transfer from the City.
The Company also intends to move the location of the medical marijuana establishment (“MME“) to another location in the City of Henderson and has applied to the City to approve such relocation. The new location is comprised of a 17,500 square foot freestanding industrial building, with approximately 15,500 of warehouse space (the “Property“). It is intended that Nutritional High will remodel a portion of the building for the purpose of developing an extraction and marijuana infused products manufacturing facility, using the same technology and processes that it has developed in Pueblo, CO. It is also intended that a portion of the building will be acquired by Lakeside Minerals Inc., with a view of constructing a cultivation facility, as announced in a joint press release dated February 28, 2017. Upon receiving approval from the City of Henderson for both the transfer of the Business Licenses to Nutritional High and the moving of the MME location, the Company will seek approval from the Department to move the location.
The key terms of the purchase of the Property are as follows:
- Purchase Price of US$2.31 million with a deposit of US$100,000 payable on signing of the purchase and sale agreement;
- Escrow to close on or before May 31, 2017;
- Closing is conditional on the approval of the Department to relocate the Licenses;
- If the acquisition is not closed prior to July 1, 2017, the Purchase Price is subject to escalating increases up to $2.4 million with a drop dead date of September 1, 2017;
“We are pleased with the rapid progress being made on the regulatory front and we look forward to accelerating our timing to market with our new facility,” stated Nutritional High CEO Jim Frazier. “We look forward to applying the lessons learned from the establishment of the Pueblo, CO, facility, to roll out products – oil and edibles – to the Las Vegas market, and later, throughout Nevada. We believe that Las Vegas and Nevada in general will develop into an important market for our products, especially as recreational adult use is implemented in the coming months.”
While the Company believes the relocation will be approved, the Company is maintaining an option to purchase the property to which the Licenses are currently attached. To this effect, the Company has extended the closing date with the vendor of the owner of the current location in order to mitigate potential risks relating to relocating the MME.