California Roll-out Accelerates – Nutritional High Announces Definitive Agreement to Acquire Sacramento, California, Cannabis Extraction Facility
TORONTO, July 09, 2018 (GLOBE NEWSWIRE) — Nutritional High International Inc. (the “Company” or “Nutritional High”) (CSE:EAT) (OTCQB:SPLIF) (FRANKFURT:2NU) is pleased to announce that it has signed a definitive agreement for the acquisition of Pasa Verde, a commercial scale cannabis oil extraction and edible facility in Sacramento, California. Pasa Verde produces a number of extract products on a contract manufacturing basis for leading brands and will begin producing Nutritional High’s FLÏ™ branded oil and edible products.
From it’s 17,600 square foot facility, Pasa Verde has experience producing, and equipment for both ethanol and CO2 extraction with abundant room for expansion. Plans have been drawn up and submitted to local authorities for an aggressive expansion of the facilities to enable the manufacture of a wide range of edible products.
“We are very pleased to welcome Tony Westfall and his team to the Nutritional High family,” said Jim Frazer CEO of Nutritional High. “We have a number of innovative products we will release in the coming months and years for Calyx to distribute. With Calyx’s insight and Pasa Verde’s infrastructure and management, we are well placed to ensure that FLÏ™ and other Nutritional High product will have a prominent and leading place in the California market.”
The acquisition of 100% interest in Pasa Verde is expected to close before the end of July 2018 at a purchase price of US$1.65 million, of which $900,000 is payable in Nutritional High shares. The transaction also includes an earn out of up to US$5.3 million depending on growth of the business over the next 2 years. The earn out is contingent on growth targets for 12, 18 and 24 months and is payable half in cash and half in shares on Nutritional High.