Nutritional High Reports Accelerated Calyx Sales and Updates California Distribution Plans
TORONTO, May 13, 2019 (GLOBE NEWSWIRE) — Nutritional High International Inc. (“Nutritional High” or the “Company”) (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) is pleased to report acceleration and expansion in the Company’s California operations.
April 2019 was a record sales month for Calyx Brands Inc. (“Calyx”), Nutritional High’s wholly owned California-based distributor. Calyx recorded monthly revenue in excess of US $1.85M (~CAD $2.5M), reflecting strong demand for core products driven by development of additional distribution capacity. In addition, estimated and unaudited gross margin rose to 15%, in line with management’s expectations. Calyx continues to expand its distribution network and now services more than 500 licensed retail dispensary outlets in the State of California.
As disclosed in the press release dated April 1, 2019, for the 12 months ended January 31, 2018, Calyx reported revenue of approximately $17.2 million with sales in the second half of the period increasing by 96% to $11.4 million from $5.8 million in the first half of the period. Over the same period, gross margin increased by approximately 10%.
The Company is also pleased to announce that it has received approval to modify the conditional use permit (“CUP”) attached to Nutritional High’s FLI Labs NorCal facility in Sacramento, California. Pending final regulatory approval, the modification will add another distribution hub to Calyx’s network and reinforce its position of leadership in the burgeoning Northern California cannabis market. Upon receipt of the requisite building permits, the Company will commence build-out of the warehousing space, seek a certificate of occupancy and apply for an operating permit to launch distribution operations. Once operational, the additional infrastructure will significantly increase the Company’s ability to influence retail shelf space in California via enhanced market access, order fulfillment frequency and wider breadth of branded product offerings.
“We maintain our commitment to becoming one of the leading manufacturers and distributors of cannabis products in Western US,” commented Adam Szweras, Co-Chairman of Nutritional High. “We have proven out our strategy in California, where we are the top distributor of edibles, and will continue expanding our footprint in the state. We are moving ahead with core strategic focus on California and Nevada, while progressively executing our commercial growth plans in other jurisdictions as well.”
Nutritional High and Tres Ojos Naturals LLC (“Tres Ojos”) mutually elected not to proceed with the previously announced acquisition (announced January 29, 2019). The Company will however continue to distribute SolDaze through its wholly-owned subsidiary, Calyx and very much looks forward to a continued close relationship with the SolDaze team.