TORONTO, July 03, 2018 (GLOBE NEWSWIRE) -- Nutritional High International Inc. (the "Company" or "Nutritional High") (CSE:EAT) (OTCQB:SPLIF) (FRANKFURT:2NU) is pleased to announce its financial and operational results for the three month period ended April 30, 2018. All figures are reported in Canadian dollars ($), unless otherwise indicated.
Q3 Operational Highlights and Recent Developments
- Nutritional High raised $8 million in a convertible debenture to finance corporate infrastructure, acquisitions and expansion to various states.
- Revenue for the period was $2,680,444, an increase of 408% from the comparative period in fiscal year 2017 of $527,227.
- In March, Nutritional High acquired Calyx Brands Inc., a leading distributor to a vast network of dispensaries throughout California.
- In just 46 days of operation under the Nutritional High umbrella, Calyx contributed $1,674,269 in revenue to the Company’s top line.
- In April Nutritional High signed a binding letter of intent to acquire Pasa Verde, LLC, a leading manufacturer of cannabis extract and toll processing operation in Sacramento, California.
CEO Commentary
“Q3 was a transformational period for our business as we focused on the acquisition of Calyx, the ramping up of its operations, and moving to secure in-house manufacturing capabilities in California," said Jim Frazier, CEO of Nutritional High.
"Through our partners and wholly-owned subsidiaries, we now have a presence in three key legal North American cannabis markets – California, Colorado and Illinois – with more to come. In addition to continued California expansion, we expect to proceed with our planned launches in the coming months in Canada, Washington State, and Oregon. We also are excited by the opportunities ahead in Nevada as we press ahead with our planned acquisition of Green Therapeutics.”
“With specific exposure to value-added downstream segments - including extract and edibles manufacturing, distribution, product development, technology, marketing and brands – we continue to focus on the highest margin segments of the industry and have limited our exposure to the risks inherent in growing cannabis (including the limitations on profit which come from commoditization witnessed in many US markets).”
“Our efforts are now resulting in the generation of substantial revenue, the acquisition of a leading distribution network in the most important US cannabis market, and commercial-scale extraction operations, which will allow Nutritional High to become a major player in the California market. Going forward, we will continue to pursue our aggressive growth strategy as we see tremendous opportunity on the horizon.”
Q3 Financial Highlights – Q3 2018
- Revenue for the period was $2,680,444, an increase of 408% from the comparative period in fiscal year 2017 of $527,227. Revenue for the period includes first-time reported product sales of $1,674,269 of Calyx Brands from March 15 to April 30, 2018, following the acquisition of Calyx Brands in March 2018.
- Revenue and profit (loss) in joint ventures and associates were:
• The Effingham Clinic, a medical marijuana dispensary in Illinois of which Nutritional High own a 50% interest, reported revenue for the period of $2,407,359, an increase of 294% compared to comparative period in fiscal year 2017 of $610,845. Net profit reported was $424,978, an increase of $498,452 compared to net loss of $73,474 in the comparative period.
• Aura Health Corp., a medical marijuana clinics operator of which Nutritional High owns a 16% interest, reported no revenue for the period and a net loss of $528,755, an increase of 42% from the comparative period in fiscal year 2017.
Note that revenue from both sources were not consolidated to Nutritional High’s revenue. Rather, Nutritional High recognized its net profit (loss) of the joint ventures and associate based on Nutritional High’s proportionate interests. The net profit (loss) recognized has been disclosed as gain (loss) from interests in associate and joint venture on the statements of loss and comprehensive loss.
- Total operating expenses for the period were $6,276,149, an increase of 103% from the comparative period in fiscal year 2017 of $3,084,158 and total net loss was $5,924,286, an increase of 171% from the comparative period.
- Total assets increased to $19,227,881 or 136% from July 31, 2017 resulting from the closing of $8 million convertible debenture and acquisition of Calyx Brands, both in March 2018.
Nutritional High's Q3 financial statements and MD&A are filed on SEDAR under the Company’s profile and on the Company’s website.
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 through 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 in California through its wholly owned distributor Calyx Brands Inc., and Colorado where its products are manufactured by a licensed producer. The Company also owns a 50% interest in The Clinic Effingham (an Illinois dispensary), and is entering the Nevada, Washington State, Oregon 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 and Google+ 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
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 contains 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. Such statements include submission of the relevant documentation within the required timeframe and to the satisfaction of the relevant regulators, completing the acquisition of the applicable real estate and raising sufficient financing to complete the Company’s business strategy. There is no certainty that any of these events will occur. 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. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, ”scheduled”, “estimated”, “forecasts”, “intends”, “anticipates” or “does not anticipate:, “believes”, “may have implications” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”.
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.