TORONTO, Dec. 10, 2019 (GLOBE NEWSWIRE) — Nutritional High International Inc. (“Nutritional High” or the “Company“) (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) wishes to announce that its distribution business under Calyx Brands Inc. (“Calyx“) will downsize under a new service model together with the termination of its distribution relationship with a subsidiary of Plus Products Holdings Inc. (“Plus“). The Company also announces the resignation of the Company’s CFO, Mike DiNapoli.
In early 2018, Calyx entered into a distribution agreement with Plus during which time Calyx has built a significant distribution infrastructure with access to over 600 of California’s dispensaries for Plus and other brand customers.
In accordance with the terms of a settlement agreement between the Company and Plus, dated December 9, 2019, Plus will assume responsibility for Plus branded inventory held by Calyx and a portion of the receivables and cash balance associated with sales of Plus products. Further, as part of this settlement agreement, Plus has agreed to forbear for a period of 180 days for repayment of the remaining amount owing to Plus.
Calyx is implementing a number of steps to reduce costs while continuing to provide distribution services to its growing portfolio of leading brands. With a more diversified customer base, Calyx is now able to offer a range of services from a lower cost, fulfillment-only to full-service sales and support depending on the customer needs and stage of brand lifecycle. 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 – “Calyx has spent a lot of time and energy building a full-service distribution model driven by the needs of a single customer. Without this concentration in our customer base, Calyx will focus on onboarding our newly signed brand customers into a more cost efficient distribution model. We believe that this will allow Calyx to achieve a cash flow-positive business with lower revenue for the benefit of Nutritional High and its shareholders.”
Nutritional High is undertaking a strategic review of Calyx and the overall business of Nutritional High. We believe that this process will allow Nutritional High to focus on our manufacturing and brand development and leverage these strengths to emerging opportunities in CBD with Golden Triangle and other partners.
To assist in this strategic review process, the Company has engaged Eight Capital as an exclusive financial advisor. The Company expects to provide further details regarding strategic review in the coming weeks.
We would also like to thank Mike DiNapoli for his contribution during his time as CFO of Nutritional High and wish him success in his future endeavors. The Company will appoint an interim CFO in short order and undertake a search for a permanent replacement.
As announced on December 4th 2019, the Company has called for a meeting of the unsecured debenture holders to consider certain amendments to the debentures which will result in a reduction in the conversion price to $0.15 and the Company being authorized to pay the interest due on the debentures in cash at the existing rate of 10% per annum or through the issuance of its common shares at a rate of 14% per annum, at its sole discretion.