TORONTO, June 25, 2019 (GLOBE NEWSWIRE) -- Nutritional High International Inc. ("Nutritional High" or the "Company") (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) is pleased to provide an update regarding the funding and operations of Palo Verde LLC ("Palo Verde"), the Company's licensed tenant at its campus in West Pueblo, CO ("Pueblo Facility").
In 2018, Palo Verde was working on obtaining a renewal for its retail marijuana products manufacturer license ("Retail MIPs License"), which was obtained in October 2018 through a settlement with Colorado Department of Revenue, Marijuana Enforcement Division ("MED"). As a condition of its Retail MIPs License renewal, Palo Verde had to obtain alternative financing for the promissory notes made between Palo Verde and the Company. Palo Verde has obtained the required financing in the amount of US $250,000 ("New PV Loan") in April 2019 from a third party unrelated to the Company and Palo Verde ("New Lender") and has submitted the requisite documents to the MED for approval. In connection with the New PV Loan and to comply with MED requirements, the Company assigned its prior note with Palo Verde to the New Lender. All other agreements between-wholly owned subsidiaries of the Company and Palo Verde remain in in full effect, which include:
- Lease agreement pursuant to which Palo Verde leases the Company's Pueblo Facility.
- Packaging supply agreement pursuant to which Nutritional High supplies FLI-branded packaging to Palo Verde.
The agreements are described in more detail in the Company's financials and MD&A for the six months ended January 31, 2019. The New PV Loan arrangement is not expected to materially affect the basis on which the Company continues to work with Palo Verde but provides certainty with respect to the business arrangement vis-à-vis the MED regulatory framework. Both the Company and Palo Verde expect that the access to additional funding through the net proceeds of the New PV Loan, ability to expand the licensed premises at the Pueblo Facility, and access to Nutritional High's expertise and intellectual property provide a solid foundation for Palo Verde to continue accelerating sales in the State of Colorado.
Since reaching the settlement with MED, Palo Verde also secured a license to manufacture medical marijuana-infused products ("Medical MIPs License") and is awaiting receipt of a retail cultivation license ("Retail Cultivation License"). The current license coupled with the physical infrastructure at the Pueblo Facility provides Palo Verde a solid base to expand its product offering and sales.
Adam Szweras, CEO of Nutritional High, commented: "We're pleased with the progress Palo Verde continues to make as it expands its footprint in the State of Colorado. We've seen Palo Verde grow from a startup with only a couple of employees to an established player in a mature market continuously growing its market share. Our strategic relationship with Palo Verde allows us to increase visibility of our in-house FLI brand in one of the largest markets in the country. Palo Verde’s ability to grow sales with recent easing of regulatory headwinds is an exciting development for us and our strategic partners."
Palo Verde currently produces concentrates and edibles from the Company's 11,000 sq. ft. state-of-the-art extraction and manufacturing facility. It uses a unique oil processing technique, utilizing both short-path distillation and VTA scale machinery to ensure a potent, clean, consistent product. At this time, Palo Verde has active working relationships with more than 100 dispensaries throughout the State of Colorado, which carry FLI-branded products. Palo Verde has indicated to the Company that it expects continued revenue growth as it introduces new product SKUs, bolsters its sales team, and expands its licensed premises.
Palo Verde currently manufactures multiple SKU's of FLI-branded cannabis products, including: FLI Vape Pens, FLI Syringes, FLI Extracts, FLI Chocolates, FLI Space Joints, and bulk oil. For more information on the FLI product lines and the locations which carry FLI Branded products please visit https://www.getfli.com. FLI chocolates have been in production by Palo Verde for over 6 months. Palo Verde informs the Company that it expects to introduce an additional three FLI-branded product lines in 2019, including FLI-branded gummies, press tabs and hard candies.
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing products under recognized brands in the cannabis products industry, with a specific focus on edibles and oil extracts for medical and adult recreational use. The Company works exclusively with licensed facilities in jurisdictions where such activity is permitted and regulated by state law.
The Company follows a vertically integrated model with a fully developed strategy for acquisitions in extraction, production, sales, and distribution sectors of the cannabis industry. Nutritional High has brought its flagship FLÏ™ edibles and extracts product line from production to market through its wholly owned subsidiaries in California and Oregon, as well as Colorado where its FLÏ™ products are manufactured by a third-party licensed producer. In California, the Company distributes its products and products manufactured by other leading producers through its wholly owned distributor Calyx Brands Inc. and is entering the Nevada, Washington State and Canadian markets in the near future.
For updates on the Company's activities and highlights of the Company's press releases and other media coverage, please follow Nutritional High on Facebook, Twitter, and Instagram or visit www.nutritionalhigh.com.
For further information, please contact:
David Posner
Chairman of the Board
Nutritional High International Inc.
647-985-6727
Email: dposner@nutritionalhigh.com
Ethan Karayannopoulos
Director, Investor Relations
Nutritional High International Inc.
416-777-6175
Email: ethan@nutritionalhigh.com
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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. The statements relate to potential market expansion and the use of the proceeds of the Offering. Risks that may have an impact on the ability for these events to be achieved include completion of due diligence, negotiation of definitive agreements and receipt of applicable approvals. 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.
The 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. Some of the risks and other factors that could cause actual results to differ materially from those expressed in forward-looking information expressed in this press release include, but are not limited to: obtaining and maintaining regulatory approvals including acquiring and renewing U.S. state, local or other licenses, the uncertainty of existing protection from U.S. federal or other prosecution, regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, market and general economic conditions of the cannabis sector or otherwise.