#Cannabis Stock News: Nutritional High (CSE: $EAT) (CSE: EAT.CN) (OTCQB: $SPLIF) Announces Closing of Oregon Property Acquisition and an Update on Licensing
TORONTO, ONTARIO - March 27, 2017 (Investorideas.com Newswire) Nutritional High International Inc. (the "Company" or "Nutritional High") (CSE:EAT)(CSE:EAT.CN)(OTCQB:SPLIF)(FRANKFURT:2NU) is pleased to announce that is has closed an acquisition of a real estate property in The City of La Pine located in Deschutes County, Oregon where the Company intends to extract cannabis oil, and manufacture cannabis infused products. The Company is in the advanced stages of an application process to manufacture cannabis concentrates and edibles with Oregon Liquor Control Commission ("OLCC") in relation to the property.
Jim Frazier, CEO of Nutritional High commented - "We're excited to announce this key milestone in Nutritional High's expansion strategy, establishing our presence in Pacific Northwest. In our view, the State of Oregon has one of the most robust cannabis regulation and we are excited to be a part of this growing market. The move to establish operations from the ground-up and receive a Processor License is consistent with our growth strategy to secure a national foothold by replicating the Colorado model in other states that regulated cannabis for adult and medical use."
Oregon Licensing Update and Construction Timeline
Nutritional High has contracted to purchase the property in late 2015, soon after the State of Oregon published the licensing rules for cannabis companies and applied for land use compatibility survey ("LUCS") with the City of La Pine, which was granted in April 2016. The LUCS permits the Company to manufacture concentrate and topical products at its location in La Pine.
Since then, the Company has been working with state and local regulatory authorities to obtain the necessary permits to receive the Recreational Processor License from Oregon Liquor Control Commission ("OLCC").
The Company has also been working with architect and engineering teams out of Bend, OR to finalize the design of the facility and work with local authorities to apply for requisite local permits to start re-modelling of the facility. Earlier this year the Company has secured the architectural and mechanical building permits from Deschutes County Community Development Department ("DCCDD") and expects to secure electrical and plumbing permits, which will enable the Company to commence remodelling of the facility. The Company expects to commence construction in calendar Q2 of 2017. The construction is expected to take approximately three to four months, and will be followed by the installation of equipment, which is currently being ordered to minimize the lead time to commence production.
After completing the construction, the facility will be inspected by Oregon Department of Agriculture ("DOA") and OLCC, upon successful completion of which the Recreational Processing License from the State will be granted. The final steps in the permitting process include the inspection by the DCCDD, and certain departments of The City of La Pine, including the fire chief, planning department and the City manager.
Licensed cannabis companies in the State of Oregon are not subject to residency requirements. As such, the licensed operator will be wholly owned by Nutritional High.
The Company acquired La Pine Property for approximately US$404,925, which was paid for in cash. The Company may consider obtaining secured financing against the property in future.
Oregon Business Plan Update
Upon fully completing Phase I construction and permitting, the Company will focus on rolling out its FLI products in the State of Oregon. Nutritional High will emulate its Colorado model, starting with bulk oil and cartridges, followed by edible and topical products. The initial permitting and design was focused on replicating the extraction process in Pueblo, CO, using ethanol-based primary extraction method and short-path distillation to purify the oil.
Once the production of concentrate products has commenced, the Company will begin planning and obtaining requisite permits for Phase II (including an updated LUCS), which would be focused on manufacturing cannabis-infused edible products. The La Pine facility has a total square footage of approximately 5,000 square feet, which is sufficient to house a robust extraction and infused product manufacturing operation and manufacture more than a dozen of product lines.
Oregon Cannabis Market
The State of Oregon has one of the oldest medical cannabis programs in the Country, having passed Measure 67 in 1998, and in 2014 Oregon passed Ballot Measure 91, which has legalized cannabis for adult use. According to OLCC data, retail sales of cannabis for the week of 01/22/2017 were slightly above $5 million1, which would represent an annualized revenue of approximately $260 million, with approximately 30% of the market representing non-flower marijuana products such as concentrates, topicals and edibles. Total sales are expected to significantly accelerate, since most the retail establishments are still being approved by the regulators.
According to ArcView Market Research Data, Oregon is sixth in the nation in per capita marijuana use at 16.7%, which pegs the market at approximately 660,000 consumers2. The market is projected to grow to almost $1 billion in sales by 2020.
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing products and nationally recognized brands in the hemp and marijuana-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+ or visit www.nutritionalhigh.com.
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, 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 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.
Nutritional High International Inc.
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