TORONTO, Nov. 12, 2018 (GLOBE NEWSWIRE) — Nutritional High International Inc. (“Nutritional High” or the “Company”) (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) is pleased to announce that it has completed a sale and leaseback financing of certain equipment located at its La Pine, Oregon facility (the “Equipment”) for gross proceeds of $438,407 USD to Veterans Capital Fund II, LP (the “Buyer” or “Veterans”). In addition, Nutritional High issued 156,574 common share purchase warrants (each, a “Warrant”) to the Buyer. Each Warrant entitles the Buyer to purchase one common share in the capital of the Company (a “Common Share”) at a price of $0.70 CDN per Common Shares for a period of 24 months from the date of issuance. The Equipment sold by the Company to the Buyer comprises substantially all of the equipment used by Nutritional High at the La Pine facility.
Pursuant to the agreement with the Buyer, the Company will continue to utilize the Equipment to process a wide range of products under its FLI brand, including its vape cartridges, syringes, and dab. Nutritional High will roll out FLI-branded cannabis-infused edibles including chocolate bars, shots, additional syringe offerings and other innovative products (collectively, the “FLI Edibles”). The FLI Edibles are expected to roll out in Q1 of 2019. The Company has successfully completed the first batch production for laboratory testing through the cold ethanol extraction equipment.
Located in the City of La Pine, 30 miles from scenic Bend, Oregon, the facility is comprised of three contiguous parcels of land totaling and aggregate of 18,295 square feet (0.42 acres) with 4,662 square feet of manufacturing and office space and 540 square feet of mezzanine storage space. Nutritional High completed the facility build-out and was granted a Marijuana Processor License for the facility by the Oregon Liquor Control Commission in early September 2018. With the expansion and development of the facility, the Company is well situated to serve the Portland market as well as smaller centers across the state.
Jim Frazier, CEO of Nutritional High, commented, “The leaseback gives us the flexibility and additional capital to better serve the La Pine Facility, as well as other Nutritional High operations, potential investments and partnerships as the Company grows. We are very excited about the development and production in Oregon and look forward to introducing our flagship FLI-branded products into the state in November.”