Jim Frazier, CEO of Nutritional High commented - "This past quarter has been crucial in our Company's development cycle. Achieving commercial production in Colorado demonstrates our proof of concept, which the team is working on replicating in other US states. The Company has also announced developments regarding expansion into other states and progress on the product front. I would like to thank our shareholders for their following and their continuous support."
Q2 Financial Highlights
The Consolidated Financial Statements and Management Discussion and Analysis for the Quarter Ended have been filed on www.sedar.com. Outlined below is a summary of key highlights (in CAD unless otherwise noted), however, we encourage shareholders to review the documents in their entirety.
The revenue for 6 months ended January 31, 2017 was $331,464, which was comprised of interest income and rent income, payable from Palo Verde. As of January 31, 2017, a total of $1,460,362 was owed to Nutritional High from Palo Verde LLC ("Palo Verde"), of which approximately $480,000 was recognized as impairment on the amount receivable.
The Company had total assets of approximately $9.7 million, of which, approximately $5.8 million was comprised of cash. The balance was comprised of investment properties, amounts due from Palo Verde, capital assets (mostly comprised of equipment), accounts receivable, licenses, investments and property deposits.
A key statistic that we would like to highlight is the investments account of $639,826, which contains the investments that the Company has made for its Illinois project, The Clinic Effingham ("TCE"), which had revenue of $368,469 and a net loss of $85,030 as sales commenced on September 17, 2016. The Illinois project is presented on the financial statements using equity method, rather than consolidation.
The Company would also like to note that due to residency requirements in the State of Colorado the Company may not control (or indeed have an ownership interest in) Palo Verde, and as such, it may not consolidate the financial performance of Palo Verde. Since the Company has completed the build-out and equipment installation at its Pueblo facility, Palo Verde has purchased and processed into oil 230 pounds of trim and shake.
Q2 Milestones Highlights
Q2 has been a very busy and exciting for the Company. Below is a summary of key milestones that Nutritional High has achieved since October 31, 2016:
Closing of Private Placement for gross proceeds of ~$5.5 million;
Acquisition of interest in Aura Health and expansion updates thereto;
Launch of its flagship FLI brand;
Acquisition of Dabstick product;
Launch of our new website;
Addition to The Marijuana Index which is owned and managed by MJIC, Inc.;
Announced agreement to acquire Nevada Licenses and a Real Estate Property in Henderson, NV;
Commencement of commercial production by Palo Verde at Pueblo, CO, facility;
Acquisition of additional equipment for lease to Palo Verde to increase marijuana oil production capacity;
Announcement of joint venture with Lakeside to build-out grow facilities in Pueblo, CO, and Henderson, NV: and
Closed acquisition of a real estate property in La Pine, OR and provided an update on licensing.
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.
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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. 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.