Nutritional High International Inc.
CSE : NHL
OTCQB : SPLIF

Nutritional High International Inc.

May 14, 2015 10:00 ET

Nutritional High Provides Colorado and US Expansion Strategy Update

TORONTO, ONTARIO--(Marketwired - May 13, 2015) - Nutritional High International Inc. (the "Company" or "Nutritional High") (CNSX:NHL)(OTCQB:SPLIF) is pleased to provide a progress update in respect to its Colorado operations and an update regarding its expansion strategy in the United States.

David Posner, CEO of Nutritional High commented - "I am pleased with the progress Nutritional High continues to make on the ground and we look forward to working toward initiating the operations in Colorado. The recently announced transaction of Zephyr is an example of how the Company implements its roll-up and royalty model ("R&R Model") in establishing a foothold in various markets across the United States."

Colorado Operations Update

The Company is pleased to report that the efforts to establish operations in Colorado are progressing on schedule. Palo Verde LLC ("Palo Verde") has engaged Your Green Contractor, Inc. ("YGC") as a general contractor and Manifold Design and Development, LLC ("Manifold") as an architectural consultant to complete the build-out of the facility in West Pueblo, CO ("Pueblo Facility"), which is owned by the Company. The build-out will focus on establishing a commercial kitchen to produce edible marijuana-infused products ("MIP") and manufacture oil extracts at the Pueblo Facility.

YGC is a full-service construction firm focused on serving the marijuana industry. YGC builds custom indoor grow facilities, greenhouses, MIP kitchens, extraction rooms and dispensaries. YGC has assisted clients in over 20 states where marijuana is legalized for medical or adult recreational use.

The Company has selected the machinery and equipment necessary to establish manufacturing of MIPs and oil extracts on a semi-automatic basis. Nutritional High is working with YGC and Manifold to finalize the permitting submissions to the local authorities ahead of initiating the build-out, which is expected to commence this summer. The Company is also finalizing the packaging design and processes for the MIP products that will be manufactured by Palo Verde. It is intended that an initial 6-8 chocolate and candy product lines will be rolled out, followed by 3- 4 product lines for each of the: chews, jolly ranchers and tinctures.

United States Expansion Strategy Update - R&R Model

The Company wishes to provide an update on its expansion efforts in the U.S. states which have legalized marijuana for medical and adult recreational use. Nutritional High has developed an R&R Model, which it uses to implement its expansion efforts. The key principle behind the R&R Model is to aggressively expand into multiple jurisdictions which have a high growth potential by way of direct acquisitions, joint-venture partnerships, and royalty and licensing arrangements. Other features of the R&R Model include:

  • Cole Memo States Only. Nutritional High is only focused on the states which have implemented adequate licensing framework and are in compliance with the Cole Memo.

  • High Growth Potential States. Nutritional High selects the states which have a high growth potential. While the U.S. states which have legalized marijuana for adult recreational use are the primary focus, the Company may also expand into the states which have legalized marijuana for medical use and have a potential for legalization for adult recreational use in the near to medium term.

  • Focus on High-Margin Segments. Nutritional High is focused on the edibles and oil extracts segment of the marijuana industry, which it believes to have the highest margin potential and provide an opportunity for rapid scaling. The Company may work in other value chain segments (such as cultivation or retail dispensaries) in the jurisdictions which have implemented a "seed-to-sale" regulatory licensing model, or where a focus solely on edibles or oil extracts is too prohibitive on stand-alone basis.

  • Compliant Structure and Transparency with the Regulators. In the U.S. States with the residency requirements ("Residency Requirement"), the Company will work exclusively with the entities that hold appropriate licenses ("Licensed Operators") to provide a suite of services (such as providing real estate, financing, brands and know- how) to facilitate expansion of the Licensed Operator's business in the edible MIPs and oil extract markets. In the states without the Residency Requirement the Company may also apply for licenses directly or enter into joint-venture arrangements with other companies.

  • Creating Leading Products. Manufacturing high quality products with consistent THC levels has been one of the dominant problems faced by the industry. Nutritional High aims to manufacture products that can become industry leading in terms of quality, THC levels and have appealing packaging design in each market from day one.

To date, Nutritional High has moved to establish a market presence by implementing its R&R Model in the States of Colorado, New Mexico and Illinois. The Company is in active discussions with parties in a number of other states and will provide additional updates regarding the expansion efforts as they arise. Nutritional High is also developing a strategy to augment its existing branding portfolio.

About Nutritional High International Inc.

Nutritional High is primarily focused on developing, acquiring and designing products and brands in the marijuana-infused edible products and oil extracts sectors for medical and adult recreational use. The Company works exclusively in U.S. states where such activity is permitted and regulated by state law, through entities which hold a valid license to produce marijuana- infused edible products and to distribute, and dispense marijuana products.

For updates on the edibles industry 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 ITS REGULATIONS SERVICES PROVIDER 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, completing the acquisition of the applicable real estate 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. We assume no responsibility to update or revise them to reflect new events or circumstances.

Company's securities offered 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.

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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