TORONTO, June 30, 2017 (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 and nine month period ended April 30, 2017.
Jim Frazier, CEO of Nutritional High comments:
"Our results for the nine months reflect relentless efforts by our management, staff and board in the successful completion of numerous financings, allowing the Company to expand its footprint from Illinois to Colorado, Nevada and Oregon, through acquisitions, joint ventures and direct investments.
"We’ve made significant progress on the product and branding side, which includes a successful roll-out of first product line in the State of Colorado, an acquisition of rights to the Dab Stick technology and full-scale launch of our in-house FLI Brand. We’re very pleased with the progress that Palo Verde, our licensed tenant in Pueblo, CO, continues to make with regard to market penetration and streamlining production capabilities, and we look forward to continuing to work with them as their team gears up to roll-out additional product lines including FLI edibles, additional FLI extract product lines and premium extract product lines.
"We also would like to note a few key points with respect to financial statements:
- The accounting treatment for our Illinois dispensary – The Clinic Effingham is done using the equity method of accounting, and its financial performance is not consolidated with the overall financial statements of the Company. Please refer to Note 20 to the financial statements for financial performance of NHMD, which owns 50% of The Clinic Effingham, and Notes 2 and 11 (ii) for more information on this treatment. We have been very pleased with the performance of the clinic, which has had sales of over US $600,000 since its opening in September 2016.
- The Company does not consolidate financial performance of Palo Verde, as it does not own any equity in Palo Verde. Licensed Operators in the State of Colorado are subject to Residency Requirements. At this time, the Company is a lender to Palo Verde and has leased the Pueblo property and equipment for its MIPs operations. The Company anticipates entering into packaging and branding agreements.
- We have been working to close the acquisition of licenses and the real estate property in the State of Nevada and to this end have achieved several important milestones: i) identified and secured another real estate property, which would result in a substantially lower capex to build out; ii) negotiated a deal with Lakeside Minerals Inc., and signed a letter of intent, which would reduce the Company’s exposure to the cultivation side of the business and reduce the capex required to establish a facility; and iii) secured an approval from the State of Nevada to transfer the license to the Company.
- The Company has finalized the acquisition of the real estate property in La Pine, OR, which accounts for an increase of $544,635 in the Investment Properties account. We have applied for Recreational Processor License with OLCC with inspection upon build-out being the next substantive step. We will provide updates as the process continues to move along. We have also closed a financing arrangement of US$400,000 secured against our La Pine property in the form of a promissory note which has an eighteen-month term bearing interest at 13% per annum payable monthly. This represents a loan-to-value ratio of 100%.
"In addition, we are laying the groundwork to continue our aggressive expansion strategy into other US States and Canada and look forward to replicating our success in Colorado and Illinois in building a robust nation-wide platform for edibles and oil extract products. On behalf of the Nutritional High management team I would like to thank all the shareholders for their continuous following and support."
Summary Financial and Operational Results:
|3-Months ending |
April 30, 2017
|3-Months ending |
April 30, 2016
|9-Months ending |
April 30, 2017
|9-Months ending |
April 30, 2016
|Loss from operations||(1,335,892||)||(634,495||)||(2,556,931||)||(1,223,633||)|
|Loss per share||(0.01||)||(0.00||)||(0.01||)||(0.01||)|
Q3 2017 Financial and Operational Highlights:
- Generated revenue of $195,762, up 16% from $168,909 for prior year comparative period ended April 30, 2016.
- Loss from operations was $1,334,892, up 11% from $634,495 for prior year comparative period ended April 30, 2016, primarily due to higher management and professional fees as a result of increase investing and financing activities.
- Net cash flow from financing activities for the nine-month period was $8,591,612 (2016 - $1,512,172) almost six times that of comparable prior period, through issuance of common shares, promissory notes, convertible debentures and exercise of options and warrants.
- Total investing activities for the nine-month period was $5,600,567 (2016 - $585,943) almost 10 times that of comparable prior period, consisting mainly of purchase of investment properties, manufacturing equipment, leasehold improvements, deposits made on licenses and properties as well as purchases of other long and short-term investments.
- Cash position as at April 30, 2017 was $1,605,486 compared to $111,786 at the end of prior year ended July 31, 2016.
- As at April 30, 2017, the Company had working capital of $4,504,686 compared to working capital deficiency of $1,432,542 at the end of prior year ended July 31, 2016.
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing proprietary products and brands in the marijuana-infused products industry, including edibles and oil extracts for nutritional, medical and adult recreational use. The Company works exclusively through licensed facilities in jurisdictions where such activity is permitted and regulated by state law.
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.
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.
For further information, please contact: David Posner, Chairman of the Board Nutritional High International Inc. 647-985-6727 Email: email@example.com
Source:Nutritional High International Inc.