TORONTO, ONTARIO–(Marketwired – April 27, 2016) – Nutritional High International Inc. (the “Company” or “Nutritional High“) (CSE:EAT)(OTCQB:SPLIF) is pleased to announce that it has completed a US$800,000 refinancing of its Pueblo, Colorado, property (the “Refinancing“) with a Florida-based institutional investor (“Lender“).
Under the terms of the Refinancing, the Lender has provided an initial advance of US$600,000 earmarked to fund the completion of certain construction and improvements at the Pueblo facility to enable Palo Verde LLC (the Company’s licensed tenant) to commence the production of cannabis extracts and cannabis derivative products. A portion of the proceeds was used to pay out the previous first mortgagee on the facility in the amount of CN$127,000. Upon completion of the build-out of the marijuana oil extraction facility, the Lender will disburse a subsequent advance of US$200,000 to be used to complete the build out of the commercial kitchen to enable Palo Verde to commence production of marijuana-infused edibles.
David Posner, CEO of Nutritional High commented, “We are pleased to have secured this financing which will allow us to significantly advance our Colorado business. In particular, we are excited to have attracted institutional lenders who have indicated an interest in working with us on other aspects of our business plan roll-out and efforts to establish operations in other states. Securing a US$800,000 financing against a property we acquired for US$885,000 signals both the confidence that the lenders have in our ability to execute, and the appreciation in the value of our property given the steps we have taken to execute our plan.”
Mr. Posner continued, “While there are many steps ahead, this new debt financing, coupled with the institutional equity funding from Kodiak, puts us on a strong financial footing to to bring our Colorado products to market.”
Under the terms of the Refinancing, the loan has a term of 12 months, which shall automatically extend for an additional 6 months upon the Company meeting certain operational milestones. The loans bears an interest of 13% per annum, payable monthly until the maturity date, and is secured by a first ranking general security interest over the Company’s Pueblo property.
In connection with the Refinancing, the Company has also granted the Lender 3,333,334 share purchase warrants (the “Warrants“) exercisable into common shares in the capital of the Corporation (the “Shares“) at an exercise price of $0.06 per Share, which shall expire 18 months after issuance.