TORONTO, ONTARIO--(Marketwired - Nov. 17, 2016) - Nutritional High International Inc.(the "Company" or "Nutritional High") (CSE:EAT)(CSE:EAT.CN)(CNSX:EAT)(OTCQB:SPLIF)(FRANKFURT:2NU) is pleased to announce that it has closed the acquisition ("Acquisition") of 40% interest in Aura Health Corp. ("AHC"), which was announced in the Company's press release dated November 11, 2016. As a part of the Acquisition the Company has advanced in the amount of US $120,000 in a form of a short-term Loan.
CEO Jim Frazier stated: "We're excited to welcome the Aura Health team to the Nutritional High family and are looking forward to working with them to establish Nutritional High'sfoothold in Nevada. This transaction represents an important milestone in our expansion strategy into other states, and is one of the examples how we're working to create shareholder value."
AHC, through Green Global, is in the process of completing the acquisition of a 30% ownership interest in a recently opened clinic in Las Vegas, Nevada from Sun Valley Holdings("Sun Valley"), a private company based in Phoenix, Arizona, which also operates three wholly owned clinics in Arizona and is the largest clinic owner and operator in the state of Arizona. AHC also has the option to increase its ownership interest in Sun Valley to 51% by making an additional working capital investment in Sun Valley in the amount of US$100,000.
Under its agreement with Sun Valley, AHC has the option to acquire a 51% ownership interest in up to 9 additional clinics expected to be launched in the next 24 to 36 months. Each acquisition is expected to occur in two phases, with the first phase consisting of US$100,000 being invested for a 30% interest with an 18-month option to acquire an additional 21% (for a total of 51%) for a second $100,000 working capital investment. Intended locations for new clinics include states that recently approved medical use of cannabis, including Florida, North Dakota and Arkansas, as well as states with pre-existing approvals for medical or recreational use, including Arizona, Nevada, Oregon and California.
Compared to the cost of applying for state licenses, establishing medical cannabis clinics is a great way to capitalize on the growth of the industry, as the regulatory costs and capital expenditures are substantially less. This strategy also provides a great way to establish brand equity with the customer following and get first hand market data relating to patient preferences.
Nutritional High Chairman David Posner commented: "This strategy can also help reduce our capital cost in establishing oils and edibles manufacturing facilities at a later date, as well as other expenses associated with start-up of such operations. And in addition to the AHC investment, we are also pursuing expansion and acquisition efforts in various other US states including California, Oregon, Washington, Nevada, Florida and elsewhere and will provide updates in due course."
About Nutritional High International Inc.
Nutritional High is focused on developing, manufacturing and distributing products and nationally recognized brands in the hemp and cannabis-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.