Nutritional High Reports Accelerated Calyx Sales and Updates California Distribution Plans
TORONTO, May 13, 2019 (GLOBE NEWSWIRE) -- Nutritional High International Inc. ("Nutritional High" or the "Company") (CSE: EAT, OTCQB: SPLIF, FRANKFURT: 2NU) is pleased to report acceleration and expansion in the Company’s California operations.
April 2019 was a record sales month for Calyx Brands Inc. ("Calyx"), Nutritional High's wholly owned California-based distributor. Calyx recorded monthly revenue in excess of US $1.85M (~CAD $2.5M), reflecting strong demand for core products driven by development of additional distribution capacity. In addition, estimated and unaudited gross margin rose to 15%, in line with management's expectations. Calyx continues to expand its distribution network and now services more than 500 licensed retail dispensary outlets in the State of California.
As disclosed in the press release dated April 1, 2019, for the 12 months ended January 31, 2018, Calyx reported revenue of approximately $17.2 million with sales in the second half of the period increasing by 96% to $11.4 million from $5.8 million in the first half of the period. Over the same period, gross margin increased by approximately 10%.
The Company is also pleased to announce that it has received approval to modify the conditional use permit ("CUP") attached to Nutritional High's FLI Labs NorCal facility in Sacramento, California. Pending final regulatory approval, the modification will add another distribution hub to Calyx’s network and reinforce its position of leadership in the burgeoning Northern California cannabis market. Upon receipt of the requisite building permits, the Company will commence build-out of the warehousing space, seek a certificate of occupancy and apply for an operating permit to launch distribution operations. Once operational, the additional infrastructure will significantly increase the Company's ability to influence retail shelf space in California via enhanced market access, order fulfillment frequency and wider breadth of branded product offerings.
We maintain our commitment to becoming one of the leading manufacturers and distributors of cannabis products in Western US
commented Adam Szweras, Co-Chairman of Nutritional High.
We have proven out our strategy in California, where we are the top distributor of edibles, and will continue expanding our footprint in the state. We are moving ahead with core strategic focus on California and Nevada, while progressively executing our commercial growth plans in other jurisdictions as well
Nutritional High and Tres Ojos Naturals LLC ("Tres Ojos") mutually elected not to proceed with the previously announced acquisition (announced January 29, 2019). The Company will however continue to distribute SolDaze through its wholly-owned subsidiary, Calyx and very much looks forward to a continued close relationship with the SolDaze team.
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, and Instagram or visit www.nutritionalhigh.com.
For further information, please contact:
Co-Chairman of the Board
Nutritional High International Inc.
Director, Investor Relations
Nutritional High International Inc.
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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. The statements relate to potential market expansion and the use of the proceeds of the Offering. Risks that may have an impact on the ability for these events to be achieved include completion of due diligence, negotiation of definitive agreements and receipt of applicable approvals. 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.
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Additionally, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. Some of the risks and other factors that could cause actual results to differ materially from those expressed in forward-looking information expressed in this press release include, but are not limited to: obtaining and maintaining regulatory approvals including acquiring and renewing U.S. state, local or other licenses, the uncertainty of existing protection from U.S. federal or other prosecution, regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, market and general economic conditions of the cannabis sector or otherwise.