Nutritional High Announces Colorado Property Financing Extension and Additional Loan Against Oregon Property

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TORONTO, ONTARIO–(Marketwired – Apr 17, 2017) – Nutritional High International Inc. (the “Company” or “Nutritional High“) (CSE:EAT)(EAT.CN)(SPLIF)(2NU.F) is pleased to announce that it has secured an extension of the US$800,000 secured note of its Pueblo, Colorado, property (the ” Colorado Loan Extension“) with a Veterans Capital Fund, LLC (“Lender“). In addition, the Company has also entered into a term sheet with the lender to provide a loan (“Oregon Loan“) against the property it acquired in La Pine, Oregon (“Oregon Property“) (please see the press release dated March 27, 2017).

Colorado Loan Extension

The terms of the Extension are as follows:

  • The Lender has agreed to extend the term an additional twelve (12) months up through April, 18, 2018;
  • The Company will continue to pay the Lender monthly interest payments at a rate of 13% per annum;
  • The Company will pay the Lender a one-time renewal fee of 1% and pay an additional extension fee of 1% for this extended term; and
  • Subject to regulatory approval, the expiry date of the previously issued 3,333,334 warrants (the “Warrants“), exercisable at a price of CAD $0.06 per Warrant will be extended, to October 18, 2018. In addition, the Company will issue to the Lender 1,000,000 new Warrants at an exercise price of CAD $0.15 per Warrant, expiring on October 18, 2018.

Oregon Loan Summary

The key terms of the Oregon Loan are as follows:

  • The Company shall commission a formal appraisal of the Oregon Property, upon which the principal amount of the Oregon Loan shall be determined, which shall be equal to the lesser of: i) 85% of the appraised value, and ii) $400,000 USD (“Principal Amount“);
  • The Oregon Loan will be secured by the first charge over Oregon Property and carry an interest rate of 13% per annum for a period of 18 months; and
  • Subject to regulatory approval, the Company shall issue to the Lender up to 1,125,515 Warrants (assuming that the principal amount of Oregon Loan is US$400,000 or CAD$530,600, assuming CAD:USD noon rate on April 13, 2017, and 35% warrant coverage), at an exercise price equal to $0.165, which represents a 10% premium to the price at which the Company has completed its last equity financing.

The Oregon Loan is subject to due diligence review by the Lender, which is expected to be completed in May 2017.

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