Nutritional High cheers Cresco's deal with Origin HouseYeah, wasn't picked up by all news outlets but it's clear they are waving a flag saying look at us.
I've not seen too much of that done by other companies but in the end, whatever works. If it gets them onto new radars, have at it.
Nutritional High cheers Cresco's deal with Origin House
2019-04-02 12:57 ET - News Release
Mr. David Posner reports
NUTRITIONAL HIGH CONGRATULATES CRESCO LABS ON ORIGIN HOUSE ACQUISITION
Nutritional High International Inc. would like to congratulate Cresco Labs Inc. on entering into the definitive agreement to acquire Origin House (CannaRoyalty Corp.), the largest public company acquisition in the U.S. cannabis sector to date, at an ascribed value of approximately $1.1-billion.
"We are pleased that another California distribution and manufacturing company with many similarities was acquired at such a healthy multiple," commented Adam Szweras, co-chair of the Nutritional High board. "This acquisition and the valuation of Origin House are a vote of confidence for companies like Nutritional High, signalling that the market values companies who are able to control shelf space and realize greater margins and market penetration through ownership of the distribution pipeline."
Jim Frazier, chief executive officer of Nutritional High, added: "In less than a year, we have grown Calyx revenues to $1.9-million per month, based on our quarter ended Oct. 31, 2018. This represents an annualized run rate of approximately $22.7-million. For the same quarter ended Oct. 31, 2018, Calyx has had a gross margin of approximately 19.5 per cent and total Nutritional High operating expenses were $4.25-million.
"Our California pipeline has access to over 450 licensed dispensaries, where we distribute 13 market-leading brands, including our own flagship FLI brand. We expect that our margins will continue to increase as we expand the manufacturing capabilities of our consumer-centric products," Mr. Frazier added.
As per the company's Oct. 31, 2018, financial statements, Nutritional High had a trailing 12-month revenue of $11.3-million, predominantly from the sale of cannabis products. Nutritional High has had a gross margin for the same period of approximately 16.3 per cent and operating expenses of $12.34-million. Nutritional High's revenue number falls just below the trailing 12-month revenue of $11.8-million reported by Origin House in its filings for the nine months ended Sept. 30, 2018, and the year ended Dec. 31, 2017. For that period, Origin House had a gross margin of approximately 10.1 per cent and operating expenses of approximately $25.45-million. As of the date hereof, Nutritional High currently has a market capitalization of approximately $86.6-million.
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 with licensed facilities in jurisdictions where such activity is permitted and regulated by state law.
Nutritional High has brought its flagship FLI edibles and extracts product line from production to market through its wholly owned subsidiaries in California and Oregon as well as Colorado, where its FLI products are manufactured by a third party licensed producer. In California, the company distributes its products and products manufactured by other leading producers through its wholly owned distributor Calyx Brands Inc. and is entering the Nevada, Washington State and Canadian markets in the near future.
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