the Lease Line of Credit will have a 3-year term with fixed monthly lease rental payments based on a monthly lease rate factor of 3.3694% of the capital cost;
funding under the proposed Lease Line of Credit will be in increments of US$500,000 or as per each lease schedule;
the Company has the option to extend the lease term for a minimum of 12 months at renewal;
the Lease Line of Credit provides for a buyout option, whereby the Company has an option to purchase all the equipment under the Lease Line of Credit for fair market value, which shall not exceed of 14% of the capital cost;
the Lease Line of Credit will be secured by various new extraction and lab processing equipment, attachments, parts and warranties.
the Company will issue 1,000,000 warrants at an exercise price of C$0.70 per share, expiring 3 years from the date of closing. 25% of the total warrants shall vest upon execution of the Lease Line of Credit agreement and the remaining 75% will vest on a pro-rata basis as the Lender funds the lease schedules.
the Company will pay the Lender certain other fees based on amount funded under the lease schedule.
The Company intends to use the Lease Line of Credit to purchase equipment for the following projects:
Pasa Verde facility in Sacramento, CA;
Palo Verde facility in West Pueblo, CO;
Green Therapeutics facility in North Las Vegas, NV (once the acquisition is concluded – please see the press release dated June 5, 2018);
Closing of the Lease Line of Credit is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange, and execution of definitive agreements.
Jim Frazier, CEO of Nutritional High, commented, "We are pleased to continue our working relationship with Veterans Capital and look forward to deploying these funds to enhance the technological footprint of our facilities in the US. These additions will help us to continue executing the roll out of our strategic plan in California and our other targeted markets. Having access to this capital allows us the flexibility to pursue opportunities that can generate maximum value for our shareholders."
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing products under recognized brands in the cannabis products industry, with a specific focus on edibles and oil extracts for medical and adult recreational use. The Company works exclusively through licensed facilities in jurisdictions where such activity is permitted and regulated by state law.
The Company follows a vertically integrated model with a fully developed strategy for acquisitions in extraction, production, sales, and distribution sectors of the cannabis industry. Nutritional High has brought its flagship FLÏ™ edibles and extracts product line from production to market in California through its wholly owned distributor Calyx Brands Inc., and Colorado where its products are manufactured by a licensed producer. The Company also owns a 50% interest in The Clinic Effingham (an Illinois dispensary), and is entering the Nevada, Washington State, Oregon and Canadian markets in the near future.
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.
For further information, please contact:
David Posner Chairman of the Board Nutritional High International Inc. 647-985-6727 Email: email@example.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 contains forward-looking statements and information based on current expectations. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, ”scheduled”, “estimated”, “forecasts”, “intends”, “anticipates” or “does not anticipate:, “believes”, “may have implications” or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “might”, or “will be taken”, “occur”, or “be achieved”. Forward looking information in this press release includes the statement that the Company may complete the Lease Line of Credit, the terms of the Lease Line of Credit and the expected use of proceeds. The 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. 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.
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. Please see "Risk Factors" in the Company's interim management's discussion and analysis for the nine months ended April 30, 2018 available on www.sedar.com for a discussion of these risk factors. 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.
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.