Nutritional High Congratulates Cresco Labs on Origin House Acquisition
Toronto, Ontario – April 2, 2019 - Nutritional High International Inc. ("Nutritional High" or the "Company") (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) would like to congratulate Cresco Labs Inc. on entering into the definitive agreement to acquire Origin House (CSE: OH), the largest public company acquisition in the US cannabis sector to date, at an ascribed value of approximately CAD $1.1 billion.
"We are pleased that another California distribution and manufacturing company with many similarities was acquired at such a healthy multiple," commented Adam Szweras, Co-Chair of the Nutritional High board. "This acquisition and the valuation of Origin House are a vote of confidence for companies like Nutritional High, signaling that the market values companies who are able to control shelf space and realize greater margins and market penetration through ownership of the distribution pipeline."
Jim Frazier, CEO of Nutritional High added, "In less than a year, we have grown Calyx revenues to CAD $1.9 million per month, based on our quarter ended October 31, 2018. This represents an annualized run rate of approximately CAD $22.7 million. For the same quarter ended October 31, 2018, Calyx has had a gross margin of approximately 19.5% and total Nutritional High operating expenses were CAD $4.25 million.
“Our California pipeline has access to over 450 licensed dispensaries, where we distribute 13 market-leading brands, including our own flagship FLÏ™ Brand. We expect that our margins will continue to increase as we expand the manufacturing capabilities of our consumer-centric products," Mr. Frazier added.
As per our October 31, 2018, financial statements, Nutritional High had a trailing twelve-month revenue of CAD $11.3 million, predominantly from the sale of cannabis products. Nutritional High has had a gross margin for the same period of approximately 16.3% and operating expenses of CAD $12.34 million. Nutritional High's revenue number falls just below the trailing twelve-month revenue of CAD $11.8 million reported by Origin House in their filings for the nine months ended September 30, 2018, and the year ended December 31, 2017. For that period Origin House has had a gross margin of approximately 10.1% and operating expenses of approximately CAD $25.45 million. As of the date hereof, Nutritional High currently has a market capitalization of approximately CAD $86.6 million1.
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 and Google+ or visit www.nutritionalhigh.com.
For further information, please contact:
Co-Chairman of the Board
Nutritional High International Inc.
Director, Investor Relations
Nutritional High International Inc.
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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. 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.
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