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 FLI(TM) 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 FLI(TM) edibles and extracts product line from production to market through its wholly owned subsidiaries in California and Oregon, as well as Colorado where its FLI(TM) 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.
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. 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.
Based on the number of common shares issued and outstanding, as of the date hereof.