TORONTO, Jan. 07, 2020 (GLOBE NEWSWIRE) -- Nutritional High International Inc. ("Nutritional High" or the "Company") (CSE: EAT, OTCQB: SPLIF) wishes to announce that its distribution business, Calyx Brands Inc. ("Calyx") recorded record sales revenue in December for all brands represented other than Plus Products. As of December 9, 2019, the Company entered into a settlement agreement with Plus under which Plus assumed responsibility for sales and fulfillment of their own branded products.
“This was an important moment for our teams to demonstrate their ability to replace the Plus business with existing and new-to-market brands. We have taken the first step in refocusing the Calyx business and adding a more tailored service offering.” commented Ken Young, EVP General Manager for Calyx Brands,
Key Highlights from Record-Setting December:
- Gross Revenue for brands excluding Plus Products exceeded US $300,000 for first time, with an average gross margin of approximately 15%.
- 32 new retail accounts opened
- Record number of customer orders delivered for brands excluding Plus representing a 30% increase over November 2019
- Selected brand sales increases in December versus November 2019
- Punch Edibles (+236%)
- Guild Extracts (+190%)
- Hella Dank (+85%)
- Gold Coast (+67%)
- Somatik (+49%)
- St Ides Blunts (+38%)
- Smooth (+33%)
- Punch Edibles (+236%)
Bethany Walden, VP Sales for Calyx Brands noted “We are grateful to our supportive brand partners, our amazing sales team, and the hundreds of dispensary and delivery service customers we serve across the state for enabling us to achieve these new records.”
As reported in December, Calyx is implementing a number of steps to reduce costs while restructuring its offerings to better service current brands and attract major brand partners in 2020. This will include lower cost, fulfillment-only services, as well as an expanded menu of account acquisition and activation services. Calyx, remains focused on being a leading distributor providing its brand partners with access to the worlds’ largest cannabis market.
Adam Szweras, CEO of Nutritional High commented – "As a result of the cost cutting and business reengineering work Ken and his team are doing, we believe Calyx will be able to achieve positive cash flow quickly, even with gross revenue temporarily reduced from prior periods, for the benefit of Nutritional High and its shareholders.”
Nutritional High is currently undertaking a strategic review of Calyx and the overall business of Nutritional High and expects to provide further details regarding strategic review in the coming weeks.
Furthermore, as announced on December 30, 2019, the Company issued shares to its unsecured debenture holders to pay interest due on December 31, 2019. The issuance price was incorrectly stated as being $0.045 where in fact, the issue price was $0.044 per share, for an aggregate issuance of 12,620,154 Common Shares. This share issuance resulted in the adjustment of the conversion price of the Company’s first secured debentures to $0.044 per share, and the Company will issue an additional 7,383,193 shares to the Company’s secured debenture holders to pay interest due to them on December 31, 2019.
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, 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
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR OTC MARKETS GROUP INC., NOR THEIR REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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 general business environment expectations, completion or timing of the strategic review, the ability of Calyx to become cash flow positive and the success of expanding the Company's manufacturing and brand development. 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.