TORONTO — Nutritional High International Inc. (“Nutritional High” or the “Company“) (CSE: EAT, OTCQB: SPLIF) wishes to announce that its distribution business, Calyx Brands Inc. (“Calyx“) recorded record sales revenue in December for all brands represented other than Plus Products. As of December 9, 2019, the Company entered into a settlement agreement with Plus under which Plus assumed responsibility for sales and fulfillment of their own branded products.
“This was an important moment for our teams to demonstrate their ability to replace the Plus business with existing and new-to-market brands. We have taken the first step in refocusing the Calyx business and adding a more tailored service offering.” commented Ken Young, EVP General Manager for Calyx Brands,
Key Highlights from Record-Setting December:
- Gross Revenue for brands excluding Plus Products exceeded US $300,000 for first time, with an average gross margin of approximately 15%.
- 32 new retail accounts opened
- Record number of customer orders delivered for brands excluding Plus representing a 30% increase over November 2019
- Selected brand sales increases in December versus November 2019
- Punch Edibles (+236%)
- Guild Extracts (+190%)
- Hella Dank (+85%)
- Gold Coast (+67%)
- Somatik (+49%)
- St Ides Blunts (+38%)
- Smooth (+33%)
Bethany Walden, VP Sales for Calyx Brands noted “We are grateful to our supportive brand partners, our amazing sales team, and the hundreds of dispensary and delivery service customers we serve across the state for enabling us to achieve these new records.”
As reported in December, Calyx is implementing a number of steps to reduce costs while restructuring its offerings to better service current brands and attract major brand partners in 2020. This will include lower cost, fulfillment-only services, as well as an expanded menu of account acquisition and activation services. Calyx, remains focused on being a leading distributor providing its brand partners with access to the worlds’ largest cannabis market.
Adam Szweras, CEO of Nutritional High commented – “As a result of the cost cutting and business reengineering work Ken and his team are doing, we believe Calyx will be able to achieve positive cash flow quickly, even with gross revenue temporarily reduced from prior periods, for the benefit of Nutritional High and its shareholders.”
Nutritional High is currently undertaking a strategic review of Calyx and the overall business of Nutritional High and expects to provide further details regarding strategic review in the coming weeks.
Furthermore, as announced on December 30, 2019, the Company issued shares to its unsecured debenture holders to pay interest due on December 31, 2019. The issuance price was incorrectly stated as being $0.045 where in fact, the issue price was $0.044 per share, for an aggregate issuance of 12,620,154 Common Shares. This share issuance resulted in the adjustment of the conversion price of the Company’s first secured debentures to $0.044 per share, and the Company will issue an additional 7,383,193 shares to the Company’s secured debenture holders to pay interest due to them on December 31, 2019.
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing products under recognized brands in the cannabis products industry, with a specific focus on edibles and oil extracts for medical and adult recreational use. The Company works exclusively with licensed facilities in jurisdictions where such activity is permitted and regulated by state law.
The Company follows a vertically integrated model with a fully developed strategy for acquisitions in extraction, production, sales, and distribution sectors of the cannabis industry. Nutritional High has brought its flagship FLÏ™ edibles and extracts product line from production to market through its wholly owned subsidiaries in California and Oregon, as well as Colorado where its FLÏ™ products are manufactured by a third-party licensed producer. In California, the Company distributes its products and products manufactured by other leading producers through its wholly owned distributor Calyx Brands Inc. and is entering the Nevada, Washington State and Canadian markets in the near future.
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 or visit www.nutritionalhigh.com.
For further information, please contact:
Chairman of the Board
Nutritional High International Inc.
Director, Investor Relations
Nutritional High International Inc.