NUTRITIONAL HIGH ANNOUNCES ENTERING INTO AGREEMENTS TO ACQUIRE PRODUCER AND PROCESSOR LICENSES IN HENDERSON, NEVADA
Nutritional High International Inc. (EAT.C) has entered into definitive agreements to acquire provisional producer and processor licences in Henderson, Nev., and a real estate property to which the licences are attached.
Jim Frazier, chief executive officer of Nutritional High, commented: "We are pleased to announce the acquisition of these licences as our debut into southwest United States. The recent passage of question 2 has legalized cannabis for recreational use more than doubled the size of the cannabis market in the state of Nevada. We are excited to stake our claim. We also note the potential synergies that this opportunity presents given our partnership with Aura Health, which currently operates a medical marijuana clinic in Las Vegas."
Terms of the acquisition
As consideration for the acquisition, the company shall pay the vendor $1-million (U.S.), $800,000 (U.S.) of which is payable in cash, and $200,000 (U.S.) of which, at the vendor's option, is payable in cash or by the issuance of 1,176,470 common shares of the company at a deemed price of 17 U.S. cents per common share. The company has advanced $100,000 (U.S.) as a deposit for the acquisition, with the balance of consideration payable upon closing.
The agreements also provide for an acquisition of the property in consideration of $1.6-million (U.S.). A refundable deposit of $160,000 (U.S.) is payable no later than Feb. 21, 2017, and the balance to be paid within 60 days of the date of the agreements.
About the property
The property is located in southeast Henderson and comprises five acres of vacant land. The vendor has also received a conditional use permit for the property from the City of Henderson to establish a medical marijuana establishment to be used for infusion/manufacturing and cultivation. As a part of the acquisition, the company has also acquired the architectural plans and vendor relationships, which would be used to construct a state-of-art 40,000-square-foot facility that will cultivate cannabis and manufacture cannabis-infused products.
As Nutritional High's mandate is the focus on oils and edibles, it is intended that the right and costs under the cultivation licence will be farmed out to a third party, with a cultivation-specific mandate.
About Nutritional High International
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.