TORONTO, ONTARIO--(Marketwired - Nov. 17, 2016) - Nutritional High International Inc. (the "Company" or "Nutritional High") (CSE:EAT)(CSE:EAT.CN)(CNSX:EAT)(OTCQB:SPLIF)(FRANKFURT:2NU) is pleased to announce that it has closed the acquisition ("Acquisition") of 40% interest in Aura Health Corp. ("AHC"), which was announced in the Company's press release dated November 11, 2016. As a part of the Acquisition the Company has advanced in the amount of US $120,000 in a form of a short-term Loan.
CEO Jim Frazier stated: "We're excited to welcome the Aura Health team to the Nutritional High family and are looking forward to working with them to establish Nutritional High's foothold in Nevada. This transaction represents an important milestone in our expansion strategy into other states, and is one of the examples how we're working to create shareholder value."
AHC, through Green Global, is in the process of completing the acquisition of a 30% ownership interest in a recently opened clinic in Las Vegas, Nevada from Sun Valley Holdings ("Sun Valley"), a private company based in Phoenix, Arizona, which also operates three wholly owned clinics in Arizona and is the largest clinic owner and operator in the state of Arizona. AHC also has the option to increase its ownership interest in Sun Valley to 51% by making an additional working capital investment in Sun Valley in the amount of US$100,000.
Under its agreement with Sun Valley, AHC has the option to acquire a 51% ownership interest in up to 9 additional clinics expected to be launched in the next 24 to 36 months. Each acquisition is expected to occur in two phases, with the first phase consisting of US$100,000 being invested for a 30% interest with an 18-month option to acquire an additional 21% (for a total of 51%) for a second $100,000 working capital investment. Intended locations for new clinics include states that recently approved medical use of cannabis, including Florida, North Dakota and Arkansas, as well as states with pre-existing approvals for medical or recreational use, including Arizona, Nevada, Oregon and California.
Compared to the cost of applying for state licenses, establishing medical cannabis clinics is a great way to capitalize on the growth of the industry, as the regulatory costs and capital expenditures are substantially less. This strategy also provides a great way to establish brand equity with the customer following and get first hand market data relating to patient preferences.
Nutritional High Chairman David Posner commented: "This strategy can also help reduce our capital cost in establishing oils and edibles manufacturing facilities at a later date, as well as other expenses associated with start-up of such operations. And in addition to the AHC investment, we are also pursuing expansion and acquisition efforts in various other US states including California, Oregon, Washington, Nevada, Florida and elsewhere and will provide updates in due course."
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing products and nationally recognized brands in the hemp and cannabis-infused products industries, including edibles and oil extracts for nutritional, medical and adult recreational use. The Company works exclusively through licensed facilities in jurisdictions where such activity is permitted and regulated by state law.
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 and Google+.
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR OTC MARKETS GROUP INC., NOR THEIR REGULATIONS SERVICES PROVIDERS HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
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. Such statements include submission of the relevant documentation within the required timeframe and to the satisfaction of the relevant regulators, repayment of the Loan by AHC, as guaranteed by Green Global, completing the acquisition of the applicable real estate, completing the acquisition of the clinics with Sun Valley, dividending of the common shares of AHC controlled by the Company to the shareholders of Nutritional High, and raising sufficient financing to complete the Company's business strategy. There is no certainty that any of these events will occur. Although such statements are based on management's reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. 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.
The Company's securities have not been registered under the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or "U.S. Persons", as such term is defined in Regulation S under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.