TORONTO, ONTARIO--(Feb. 16, 2016) - Nutritional High International Inc. (the "Company" or "Nutritional High") (CSE:EAT)(OTCQB:SPLIF) is pleased to announce that it has entered into a joint-venture agreement ("JV Agreement") with an Illinois grower for its Illinois dispensary project and has commenced renovations at its property in Lawrenceville, Illinois. It has also been granted conditional approval ("Conditional Approval") to register its dispensary by the Illinois Department of Financial and Professional Regulation ("IDFPR").
The investor group owns a cannabis cultivation and extraction facility in Southern Illinois that is licensed with the Illinois Department of Agriculture ("IDOA"). This facility was amongst the first to commence commercial cultivation and processing of cannabis products under the Compassionate Use of Medical Cannabis Pilot Program Act (Illinois) ("CUMCPPA"). The facility is located near Albion, IL, which is approximately 40 miles from Lawrenceville, IL.
David Posner, CEO of Nutritional High commented – "We are very pleased to be advancing our medical cannabis business in Illinois with such strong local partners. While the Illinois market for medical cannabis is still in its infancy, our property is favorably situated as it will be the only medical cannabis dispensary within a 100 mile radius. As the industry gains legitimacy and support in Illinois, we expect that the qualifying medical conditions will be expanded, thereby further enhancing our dispensary's long-term value proposition."
Terms of the Joint-Venture
The terms of the JV Agreement contemplate that a group of investors shall fund up to USD $300,000 of the expenses necessary to complete the establishment of the Company's medical cannabis dispensary in Lawrenceville, IL ("Dispensary") to the satisfaction of IDFPR and provide first four months of working capital. This investor group is providing a guarantee for half the seller's mortgage, which should cover all build-out and start-up costs. The investor's relationships in the community should also help accelerate growth of the Dispensary. In exchange for its contribution, the investor group shall receive for an undivided 50% interest in NH Medicinal Dispensaries Inc. ("NHMD"), the Company's wholly owned subsidiary which holds the Conditional Approval for the Dispensary and an undivided 50% interest in Small's Mill Holdings Inc. ("SMHI"), the Company's wholly owned subsidiary which holds the Company's interest in the real estate property located in Lawrenceville, IL where the Dispensary will operate once approved.
The JV Agreement is subject to a final agreement that would be subject to all requisite regulatory approvals from the relevant government authorities which include, without limitation, IDFPR and the IDOA. The investor group has made initial advances to the Company and will fund build-out efforts while the Company seeks any necessary further approvals.
Grant of Conditional Approval by IDFPR and Operations Update
The Company is pleased to announce that NHMD has been advised by the IDFPR that it has been awarded a Conditional Approval to register the Dispensary under the CUMCPPA. The Conditional Approval sets out the requirements that the NHMD must fulfill prior to IDFPR approving the registration of the dispensary, which includes (without limitation): completing the renovations and passing the final inspection to the satisfaction of IDFPR. After completing the registration, the dispensary will register its principal officers, agents-in-charge and agents, upon completion of which it is expected that NHMD will be granted a final license to operate the dispensary.
According to ArcView Market Research, the medical cannabis industry in Illinois is estimated to reach approximately $15.6 million in 2016. It is estimated that approximately 4,400 qualified patients have received permits to purchase cannabis products under the currently-approved conditions, and this figure is expected to increase exponentially as the program develops and additional permitted medical conditions are added to the program. Nutritional High is looking to benefit from this expected growth in furtherance of its singular goal of continuing to add value for shareholders.
Nutritional High endeavors to become one of the premier suppliers of industry-leading medical cannabis products in Illinois, with a view of serving the majority of the patients in the southern part of the state.
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.
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 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.
Contact InformationTranscend Capital Inc.
Nutritional High International Inc.