Nutritional High International Inc.

Nutritional High International Inc.

July 25, 2014 09:25 ET

Nutritional High International Inc. Announces Corporate Update

TORONTO, ONTARIO--(Marketwired - July 25, 2014) -

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR TO U.S. PERSONS.

Nutritional High International Inc. ("Nutritional High" or the "Company") is pleased to provide a corporate update.

Highlights:

  • Filing of a Preliminary Non-Offering Prospectus;
  • Entering into Loan and Conditional Lease Agreements with a Colorado Company;
  • Appointment of Michael Pesner to the Board; and
  • Grant of Stock Options.

Preliminary Non-Offering Prospectus

Nutritional High has filed with the Ontario Securities Commission (the "Commission") a non-offering prospectus dated July 23, 2014 (the "Prospectus") to become a "reporting issuer" pursuant to the securities legislation of the Province of Ontario. The filing and clearance of a final Prospectus was required by the Canadian Securities Exchange (the "CSE") as a pre-condition to accepting Nutritional High for listing.

Entering into Loan and Conditional Lease Agreements with a Colorado Company

As a part of its real estate strategy, the Company had previously announced the execution of a purchase and sale agreement to acquire a real estate property near Pueblo, Colorado ("Property"). Upon closing the acquisition of the Property, the Company intends to lease the property to a private Colorado company (the "Colorado Company") which is in the process of applying for a marijuana-infused product ("MIP") license and marijuana cultivation license (a "Cultivation License"). To this effect, the Company has entered into the following agreements with the Colorado Company:

  1. two real property leases over the Property conditional on the completion of the acquisition of Property by the Company and Colorado Company receiving MIP and Cultivation Licenses; and

  2. a revolving loan agreement providing a facility by the Company to the Colorado Company to draw funds for general working capital purposes, obtaining raw materials, hiring of staff and other ancillary costs to commence production.

David Posner, President and Chief Executive Officer of the Company, commented: "Signing the agreements with the Colorado Company is an important milestone in the Company's corporate strategy. This provides further validation of the Company's business model of providing solutions and services to local manufacturers of marijuana infused products".

Appointment of Michael Pesner to the Board of Directors

The Company is pleased to announce the appointment of Michael Pesner as an independent director to the Board and its Audit Committee. Mr. Pesner has been President of Hermitage Canada Finance Inc. since 2002, a firm specializing in financial advisory services. He was previously a partner in financial advisory services at KPMG LLP, in Montreal, specializing in corporate finance, mergers and acquisitions, divestitures, restructuring and corporate recovery in Canada. Mr. Pesner holds a Bachelor of Commerce degree in Finance and Administration from McGill University as well as a Bachelor of Arts degree from Sir George Williams University. Mr. Pesner will act as a Chairman of the Audit Committee of the Board.

Statis Rizas, Executive Chairman of the Company, commented: "On behalf of the Company, I am delighted to welcome Michael Pesner to the Company's board, as his extensive experience will be extremely valuable for the Company and we look forward to his perspective as a director".

Stock Option Granted

The Company has granted an aggregate of 2,800,000 incentive stock options to directors and officers of the Company and its subsidiaries. Each option is exercisable into one common share at an exercise price of $0.10 per share and expire on the fifth anniversary of grant.

About Nutritional High International Inc.

Nutritional High International Inc.'s business objective is to take advantage of the changing regulation governing the marijuana industry in the United States and Canada by taking a multi-pronged approach to the two markets:

In the United States. The Company's focus is on designing products and brands for the edible marijuana market in states which have legalized their production and sale for medicinal and/or recreational use. The Company's business model is to work with local manufacturing partners and provide them with product and brand designs suited to local markets as well as other support services. Nutritional High does not directly grow, harvest or distribute or sell cannabis or any substances that violate United States Law or the Controlled Substances Act (USA) nor does it intend to do so in the future.

In Canada. The Company has signed two option agreements to acquire interest in two properties in process of applying for producer licences under Marijuana for Medical Purposes Regulation:

  • Option to acquire a 50% interest in a company that has a right to lease a 30,000 square foot greenhouse facility located in Haldimand County, Ontario; and
  • Option to acquire a 100% interest in a company that has a right to lease a 75,000 square foot facility located in Northumberland County, Ontario.

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. 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.

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.

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