(GlobeNewswire) – Nutritional High International Inc. (“Nutritional High” or the “Company”) (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) is pleased to announce its Sacramento facility has received its provisional distribution license from the State. The facility will commence distribution operations upon receipt of its local permit.

Last year we outlined our distribution strategy in California. This license is another step towards our goal of becoming the largest distributor of cannabis products in the State, commented Adam Szweras, Co-Chairman of Nutritional High. The Sacramento facility, together with our Oakland and Chatsworth hubs, forms the backbone of our distribution architecture in California and allows us to expand the reach of our brand portfolio.

According to GreenWave Advisors, legal cannabis sales in California are expected to grow from approximately $2B in 2018 to $6.5B by 2022. The number of licensed dispensaries grew from ~450 in Q3 18 to 650 in Q4 18, but penetration remains low compared to Colorado where there are 540 retail licensees with a population of just 5.6 million.

Our statewide facility architecture is designed not just to service todays 600 stores, but the 1000-to-2000 or more dispensaries we expect in California within just a few years, said Dakota Sullivan, CEO of Calyx Brands. Having our main warehouses located on key transportation arteries in Sacramento and Chatsworth allows us to move product from growers and manufacturers all over the State into our supply chain quickly and with less cost. By plugging in flexible shipping hubs such as our Oakland facility as well as Chatsworth that are in the heart of the fastest growing markets in Northern and Southern California, were able to deliver to dispensaries faster and more frequently for more brands, simplifying life and reducing storage demands for retailers.