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Nutritional High Reports Strong Revenue Growth -- CFN Media

Nutritional High Reports Strong Revenue Growth -- CFN Media

SEATTLE, WA--(Marketwired - Jul 6, 2017) -  CFN Media Group ("CannabisFN"), the leading creative agency and digital media network dedicated to legal cannabis, announces publication of an exclusive interview and article discussing Nutritional High International Inc. (CSE: EAT) (OTCQB: SPLIF) and the growth that it reported during the latest fiscal quarter from its cannabis operations.

Strong Revenue Growth

Nutritional High reported revenue that rose 15.9% to $195,763 from a combination of rental and interest income, but the real growth story can be seen in the company's accounts receivables that have risen to nearly $2 million last quarter.

The rental income receivable comes from its Pueblo project in Colorado that's being leased to Palo Verde (see Figure 1 in full article on CFN ). Palo Verde is expected to begin making payments after achieving gross sales of $125,000 per month for three consecutive months. At that time, Palo Verde will pay rent and all deferred rent in equal monthly installments over 12 months or as agreed upon. In the meantime, Nutritional High is accruing interest at 12% per year on the amount owed.

There are signs that Palo Verde's sales are accelerating. In late-June, the company announced that Palo Verde's "FLI" brand was rapidly penetrating the Colorado market with several new orders and three subsequent re-orders from an existing customer, Nature's Herb. That company alone has three popular dispensaries in the Greater Denver area that have seen strong interest in the "FLI" brand products.

Nutritional High has also reported over $600k in sales at its Effingham, Illinois dispensary, in which it owns 50% interest. The company reports its financials under International Financial Reporting Standards®, which do not to permit to consolidate the revenues from the dispensary with the main financial statements. Instead, the company uses the equity method of accounting to record financial performance. Note that it's the third quarter during which the dispensary has been operational, and Note 20 in the filing presents more information in this regard. By extrapolating the data reported over the last three quarters the sales and income trends are as follows, in US dollars:

Q1 ended 10/31/16
Revenue: $37,150 Net Profit (Loss): -47,198

Q2 ended 1/31/17
Revenue: $331,319 Net Profit (Loss): -37,832

Q3 ended 4/30/17
Revenue: $242,376 Net Profit (Loss): 11,556

This is one of the examples of how Nutritional High is creating value for its shareholders, and investments like this could present attractive spin off opportunities. At the time when the company signed the joint venture with GTI and Ataraxia for its Effingham dispensary, it also entered into agreement with a cultivation and extraction company to negotiate an agreement to license its products in the State of Illinois. This agreement represents another strategic expansion piece to Nutritional High's plan of establishing a nationwide platform.

Solid Balance Sheet

Nutritional High is well capitalized with approximately $1.6 million in cash, $1 million in short-term investments, and $2 million in deposits. In addition to its $4.8 million in current assets, the company reported about $3 million in investments and $1.3 million due from Palo Verde.

The strong cash position provides management with a cash runway and the flexibility to execute future plans to acquire properties or investments. In addition, the company's nearly $10 million in total assets and $1.5 million in total liabilities yields about $8.3 million in shareholders' equity. The company's market capitalization of about $22 million, according to OTC Markets, implies that the company's growth opportunities are valued at approximately $14 million.

The de-leveraged balance sheet and strong cash position provide significant flexibility for making future acquisitions or reinvesting in growth. At the same time, these dynamics -- which are exceedingly rare among over-the-counter companies -- provide shareholders with a strong margin of safety from an asset valuation perspective.

Please follow the link to read the full article and see the interview: http://www.cannabisfn.com/nutritional-high-reports-strong-revenue-growth/

Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/become-featured-company/

Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your hand: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8

Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com

About CFN Media
 
CFN Media (CannabisFN), the leading creative agency and media network dedicated to legal cannabis, helps marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

CFN launched in June of 2013 to initially serve the growing universe of publicly traded marijuana companies across North America. Today, CFN Media is also the digital media choice for the emerging brands in the space.

Disclaimer:
 
Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC, which owns CFN Media and CannabisFN.com, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.

CFN Media
Frank Lane
206-369-7050
flane@cannabisfn.com



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