In Oregon, the Company engaged a contractor in late fall of 2017 who has been working to complete the remodeling of the La Pine facility. To date, the contractor has completed plumbing, wall modifications and floor drains, and is in the process of completing the electrical work and security surveillance installation. The Company had minor construction delays due to weather, but is on track to complete the build-out in calendar Q1 of 2018 and schedule the necessary inspections.
After completing the construction and equipment installation, the facility will be inspected by the Oregon Department of Agriculture, and Oregon Liquor Control Commission ("OLCC"), upon successful completion of which the recreational processing license ("License") from the State will be granted. The final steps in the local permitting process include the inspection by the Building Department of Deschutes County and certain departments of the City of La Pine, including the fire Chief, Planning Department and the City Manager.
The Company has completed the design of FLI-branded packaging that is compliant with the OLCC regulations in order to accelerate the launch of its products shortly after licensing is granted. The Company is also in the process of interviewing potential candidates for management, extraction specialist and sales roles for its facility.
Washington Project Update
As announced in Company's press release dated October 30, 2017, Nutritional High has entered into an agreement to lease the real estate property in Bellingham, WA ("Bellingham Property"). The Bellingham Property has been sub-leased to Mt. Baker Greeneries, LLC ("Mt. Baker Greeneries") which holds a Tier 2 Producer and Processor Licenses issued by the Washington State Liquor and Cannabis Board ("WSLCB").
Mt. Baker Greeneries has been focused on renovating and upgrading its facility to enable Mt. Baker Greeneries to implement Nutritional High’s SOPs, know-how and infusion techniques. These upgrades and improvements will allow Mt. Baker Greeneries to manufacture high quality distillate cannabis oil that would be used to fill FLI-branded vape cartridges, including a new Live Resin line. Nutritional High and Mt. Baker Greeneries have also identified the equipment upgrades that are required for the Bellingham Property to implement the necessary extraction and manufacturing techniques.
Jim Frazier, CEO of Nutritional High commented: "We're excited to move another step closer to establishing operations in the Pacific North West. The Oregon and Washington legal cannabis markets represent a lucrative opportunity for premium-focused concentrate and edibles manufacturers. Nutritional High is planning to make its debut in these markets by introducing its flagship FLI vape cartridges, followed by other products that we have developed or licensed from branding partners."
Addendum to Purple Haze License Agreement
The Company has entered into an addendum (the “Addendum”) to the Company’s license agreement (“License Agreement”) with Purple Haze Properties LLC (“PHP”) effective January 25, 2018. Pursuant to the Addendum, the Company has agreed to satisfy its 2017 License Agreement obligations to PHP and to meet its 2018 License Agreement obligation via issuance of 750,000 common shares in the capital of the Company (“Common Shares”) to PHP. The Addendum also includes two one-year options to extend the License Agreement at the Company’s sole discretion and provides that a portion of the stock issuances and all the owed monetary royalties shall be placed in an escrow account for contingencies.
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing premium and consistently dosed products in the cannabis-infused products industry, 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.
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.