#Cannabis News- NUTRITIONAL HIGH (CSE: $EAT.C) (OTCQB: $SPLIF PROVIDES UPDATE
ON GROWTH OF ITS DISTRIBUTION BUSINESS IN CALIFORNIA
Toronto,
Ontario – April 9, 2019 –
Nutritional High International Inc. ("Nutritional High" or the
"Company") (CSE: EAT, OTCQB:
SPLIF,
FRANKFURT: 2NU) is
pleased to provide an update on Calyx Brands Inc. ("Calyx"), Nutritional High's wholly-owned subsidiary which
operates a distribution business in California.
Read
this in full at https://www.investorideas.com/news/2019/cannabis/04092Distribution-California.asp
Financial
and Operating Metrics[1]
For
the three months ended January 31, 2018, Calyx achieved a revenue of approximately
$5.7 million, representing an annualized revenue run rate of approximately $22.7
million. For the same period, the gross margin was 19.5% and the Company's
total operating expenses were approximately $4.25 million.
As
disclosed in the press release dated April 1, 2019, for the 12 months ended
January 31, 2018, Calyx's revenue was approximately $17.2 million. Sales in the
second half of the period increased by 96% to $11.4 million from $5.8 million
in the first half of the period. In the same period, cost of sales increased
from $5.1 million to $8.9 million, which represents an improvement in gross
margin percentage of almost 10%.
Calyx
continues to grow its distribution capability in the State of California and
currently has distribution relationships with over 450 licensed dispensaries
throughout the state. It is estimated that there were approximately 650 retail
locations in California in the fourth quarter 2018, increased from 450 in the
third quarter 2018 and the overall market remains underpenetrated[2].
Calyx's
curated distribution portfolio is comprised of of 13 market-leading brands, including Nutritional
High's own flagship FLÏ™. The
product offering includes
but is not limited to edible products such as beverages, natural fruit bites,
gummies and mints, as well as concentrates, flower and pre-rolls.
Executive Quotes and Commentary
"Maintaining
and expanding relationships with dispensaries is critical to Nutritional High's
business in terms of driving sales growth and building intelligence."
Commented Dakota Sullivan, CEO of Calyx. "The data that we are able to gather from our
footprint ensures that we are constantly at the forefront of industry trends
and respond to changing consumer preferences by sourcing promising new brands
and bringing them to the attention of retailers."
"Own the distribution pipeline
and own the shelf space. That is our strategy," commented Jim Frazier, CEO
of Nutritional High. "To elaborate, through our ownership of the
distribution pipeline, we are effectively aiming to control which products
appear on shelves without actually owning any dispensaries and exposing the
Company to the risk of operating a brick and mortar retail operation. This
strategy was further highlighted by our exit from retail business when we sold
our remaining 50% interest in The Clinic Effingham in Illinois in October 2018. Our diversified approach puts us in a position
to take established brands to the next level, as well as nurture the lasting
success of emerging up-and-comers."
"Our latest quarter
revenues are approximately 7.2x of the revenue base of Calyx pre-acquisition"
added Adam Szweras, Co-Chair of the Nutritional High board. "Since acquiring Calyx in March 2018, we have been
able to rapidly accelerate revenue growth through capital injection and the
joint management expertise of Nutritional High and Calyx. Based on Calyx's
current market access of over 450 dispensaries in California, the management
believes that Nutritional High's footprint represents a dominant market
position in the California distribution landscape when compared to other
players in the market."
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:
David Posner
Co-Chairman of the Board
Nutritional High International Inc.
647-985-6727
Email: dposner@nutritionalhigh.com
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
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
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.
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