TORONTO, ONTARIO–(Marketwired – Feb 22, 2017) – Nutritional High International Inc. (the “Company” or “Nutritional High”) (CSE:EAT)(OTCQB:SPLIF)(FRANKFURT:2NU) is pleased to provide the following update on its cannabis extraction business in Pueblo, Colorado.
Jim Frazier, CEO of Nutritional High commented – “We are very pleased with the progress to-date in Pueblo and are happy with Palo Verde’s initial launch of bulk oil production. With the know-how and assistance of the Nutritional High team, Palo Verde has been making high quality premium oil which should command premium pricing. As we continue to assist Palo Verde in creating efficiencies though streamlined processes, additional high throughput equipment and innovative approaches, we are confident that the Colorado operation will be a great success. We look forward to continuing to work with Palo Verde in the coming months to launch a number of new cannabis oil and edible product lines.”
Palo Verde LLC, Nutritional High’s Colorado licensed tenant and client, is aggressively accelerating bulk oil extraction and sales. With the help of Nutritional High’s personnel, Palo Verde has been successfully streamlining its processes to maximize oil extraction yield and developing methods to increase throughput capacity. In this regard, the Company has purchased a state of art distillation plant, manufactured in Germany, which will be leased to Palo Verde and has been delivered to the Pueblo facility. The plant combines a wiped film evaporator and condenser in a single apparatus and is able to process up to 1.5L of oil per hour into distillate. Once installation is complete, Palo Verde’s capacity is expected to increase significantly driving additional revenue.
The acquisition of this plan is expected to open up another potential business line of processing low quality cannabis oil purchased from other cannabis-infused product manufacturers, into premium high-quality distillate. Palo Verde principal David Johnson commented: “The wholesale price of low quality Butane Hash Oil in Colorado is $10/gram and the wholesale price for distillate oil is estimated at $25-30/gram. With our low cost of production, the economic potential speaks for itself.”
Nutritional High is also in the process of evaluating various options for additional liquid separation/concentration equipment which will further allow Palo Verde to increase its capacity.
In addition to engaging full and part time sales personnel, Palo Verde has made additional progress on the sales front by engaging a third party sales team to aid with packaging and product distribution, aiming to secure its market reach in Colorado and facilitate prompt sales of the products as soon as they are manufactured.
The Company has also acquired and leased to Palo Verde filling equipment which will allow Palo Verde to manufacture vape pen cartridges, disposables, gelatin capsules, tinctures and the Dab Sticks. Nutritional High CEO Jim Frazier commented: “This equipment has very high throughput rates and we anticipate that it will give Palo Verde the capacity to capture a significant portion of the Colorado market for these products.” It is anticipated that these products will be sold by Palo Verde under the Company’s FLI brand.
Once Palo Verde has completed its initial roll out of these oil based products, Nutritional High expects to assist Palo Verde in launching various lines of edibles. Product development for these edible products is ongoing.
Furthermore, the Company is evaluating different strategies for taking advantage of the infrastructure at its Pueblo facility, including potentially “farming out” the empty warehouses and the vacant land to third parties for constructing cultivation facilities. The Company aims to use innovative technologies to build automated cultivation facilities, which provide consistent and genetically stable products. This will allow Palo Verde to further improve the quality of its cannabis-infused products.
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing products and nationally recognized brands in the hemp and marijuana-infused products industries, 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.
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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. 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.
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.
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