TORONTO, ONTARIO--(Marketwired - May 30, 2016) - Nutritional High International Inc. (the "Company" or "Nutritional High") (CSE:EAT)(SPLIF)(2NU.F) is pleased to provide an operational update regarding its build-out operations and expansion in Colorado, United States.
Change of Contractors and Build-out Cost Reduction Initiatives
The Company is pleased to report that efforts to establish operations in Colorado are underway. The Company has changed the contractors and recently engaged T.L. Printz Constructors in as a general contractor to complete Phase I build-out of the facility in West Pueblo, CO ("Pueblo Facility"), which is owned by the Company and leased to Palo Verde LLC ("Palo Verde"). T.L. Printz Constructors is a mid-sized commercial/industrial contractor formed in 1979 located West Pueblo, approximately 6 miles from the Company's Pueblo Facility. T.L. Printz Constructors is a LEED Certified builder licensed in 10 jurisdictions and specializing in design/build, at risk, and conventional design/build project delivery systems, as well as conventional hard-bid projects.
With Jim Frazier's leadership and T.L. Printz's assistance the Company has been able to achieve significant cost reduction in its build-out plans, which are now fully funded from the proceeds of the Pueblo Facility re-financing (previously announced in the press release dated April 27, 2016).
The Phase I build-out is focused on renovating the building to allow Palo Verde to process raw cannabis into solid and liquid cannabis concentrates and marijuana-infused products ("MIPs") such as vape pen cartridges and gel capsules. The Company expects the completion of the Phase I build-out by mid-summer of this year. The Company expects to post the images of the ongoing construction to the Company's social media pages as the build-out continues to progress. The timing of launching production will depend on State and local inspections, and the Company expects that such inspections will occur shortly after completion of construction.
Change in Extraction and Processing Technology
The Phase I build-out delay was due to the Company switching the processing technology, which required additional expertise and approvals. The Company originally planned to use supercritical carbon dioxide (CO2) extraction, but after closely examining various cannabinoid oil extraction methods used in the industry, the Company determined that using a process which combines mechanical separation and cold ethanol-based distillation.
There are several advantages supporting this technical decision, which include:
- Preservation of a wider range of volatile cannabinoids and terpenes, which enhance the potency of the final product;
- Lower costs in larger scale operations;
- Near-complete removal of residual solvents and deleterious compounds (such as pesticides), which improve the quality of the final product; and
- Throughput improvement, which reduced the volume of the material that is processed through highly specialized equipment.
The final raw concentrate produces an almost translucent oil product, which is dubbed in the industry as the "Clear". The Company's branding strategy is consistent with this higher end product, which commands a market premium and addresses constantly changing consumer preferences in Colorado.
Jim Frazier, COO of Nutritional High, commented: "I am pleased to see operations are successfully in progress in Colorado. This is an important stride for the Company and I am proud to be part of its growth. We are excited to work with Tom Printz and his team to complete the build-out of the Company Pueblo Facility."
David Posner, CEO of Nutritional High, commented: "Despite the Phase I build-out delay, I am confident we are on the right track to keep our promise of delivering premium quality MIPs to consumers in Colorado."
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.