Dietary Excessive Declares Monetary Outcomes for Fiscal Yr Finish 2019 – firebird-cbdoil
TORONTO, November 29, 2019 (GLOBE NEWSWIRE) – Nutritional High International Inc. (" Nutritional High " or " Company ") ( CSE: EAT, OTCQB : SPLIF ) is pleased to announce its financial and business results and would like to highlight and comment on the results for the year ended July 31, 2019.
|FY 2019||FY 2018||Change|
|Lease and interest income *||$||119||$||44||$||75|
|Other Income (Loss)||$||-6.203||$||-931||$||-5,272|
|Net and comprehensive income / (loss)||$||-27,358||$||-9,850||$||-17.509|
|Earnings / (Loss) per share||$||-0.09||$||-0.04||$||-0.052|
All numbers in thousands of CAD, unless stated otherwise.
Financial data from Green Therapeutics (Nevada) and Palo Verde (Colorado) are not consolidated in these results Q3 In 2018, the company began earning revenue from the sale of Canabis
Financial Highlights of Fiscal Year 2019:
º $ 23.6 million from the sale of cannabis products, primarily through Californian wholly-owned distributor Calyx Brands Inc. ("Calyx") ).
] º Represents a rise of 306% over the previous year .
º Management expects that in the coming months Calyx's sales growth will continue while reducing the revenue and finances of Calyx Green Therapeutics can be consolidated and enter directly into the Colorado market.
- gross profit of 23.2%, including manufacturing costs of $ 18.1 million, including acquisition costs, direct labor costs related to product sales, and an allocation of overheads directly attributable to product sales become. Margin improvement of 10.1% compared to the previous year.
- operating expenses of $ 25.9 million, an increase of [$1945million] from $ 16.2 million year-over-year, mainly due to the expansion of the company's business and operations. Main drivers are:
º Salaries, benefits and consultancy fees: $ 8.4 million . The increase is mainly attributable to salaries and consultancy fees for corporate acquisitions and activities in Calyx, Pasa Verde and Oregon, as well as costs for recruiting and recruiting additional members of senior management and several strategic advisors.
º General and administrative expenses: 2.8 million USD . This is mainly due to the activities of Calyx and Pasa Verde, which were acquired in the third and fourth quarter of 2018.
º Sales, Marketing and Sales Promotion: $ 1.1 million in Calyx.
º Depreciation: $ 1.8 million related to the acquisition of capital assets and intangible assets of Calyx and Pasa Verde in the previous year.
º All other items 2.1 million US dollars mainly consisting of the stock reserve for the third quarter, partially offset by the decrease in acquisition and project valuation costs.
- Other income loss of $ (6.2) million in 2019, a change of [$194529million($52million) from last year. In fiscal year 2019, the company recorded the following principal one-time / one-time items
º TCE $ 3.6 million : Q1 2019 gain on the sale of shares in The Clinic Effingham in Illinois
º Pasa Verde LLC ($ 2.4) million : Mainly non-cash impairment charge for existing intangible assets and goodwill related to loss of the cannabis license from Pasa Verde LLC ("Pasa Verde") ) in February 2019 and a decision by the Company to seek new local and state licenses, which was offset by a decrease in consideration in connection with the license cancellation and settlement agreement with the former owner of Pasa Verde.
º Marley License and Trademark ($ 5.2 million) : The company's strategy has shifted to targeted expansion of manufacturing operations in California, Nevada and Colorado. In addition, management noted that the marketability of licensed Marley products is uncertain due to market changes and increased competitive pressures in Oregon and Washington. The Company has therefore decided to write off the related assignment of license and trademark.
Excluding the above, financing costs, foreign exchange gain / loss, unrealized changes in the fair value of derivative liabilities in respect of the Company's convertible bonds and all other items were $ 1.2 million.
Business Strategy Update
Last year, Nutritional High has evolved and organized into two distinct business units – Sales and Production. The company's distribution business, Calyx Brands, is headquartered in California and has rapidly expanded its presence over the past year to serve over 600 state-owned pharmacies. Nutritional High's manufacturing business began in Colorado with Palo Verde LLC and is targeting expansion to Nevada, California. The company has successfully used both the manufacturing and distribution of its own FLÏ
We believe it is important to pursue ambitious goals to meet the potential of this industry and believe that we have the right people and partnerships to take the business to the next level and beyond.
Nutritional High entered the distribution business in March 2018 with the acquisition of Calyx Brands. Since then, Calyx has increased its sales revenue by 368% over the previous year, becoming a leading California food service provider. The Calyx platform is unique in that it supports sales and fulfillment through a strong sales and product support model. This model has led to considerable success among the top brands in the market and will continue in the fourth quarter with four new brands alone.
In line with the development of the Californian market, Calyx will introduce a hybrid sales model that allows its customer brands to select the level of service required for each product à la carte. This new service model enables brand partners to select some or all of the following services: core fulfillment services (transportation, warehousing, delivery and order management), optional fulfillment services (title ownership and working capital / AR factorization) and enhanced services (field and back office, warehouse management, retail) Merchandising and brand ambassadors, data and analysis services). With this new model, Calyx remains the preferred distributor for brands at every stage of their growth cycle.
Palo Verde, the Colorado based tenant who leverages Nutritional High's know-how and branding, has built a solid and growing space in Colorado. Palo Verde has expanded its sales team in Colorado, further improving its operations and processes. In a market often referred to as "saturated," the FLÏ In California, Nutritional High will begin production after completion and licensing of its Sacramento facility. The focus will be on the development and implementation of a new private label in the wellness category that does not compete directly with the third party brands marketed through Calyx. The Californian market can also be recognized as a white label product, which improves asset efficiency and throughput. The timing of the production start in California depends on the availability of funds.
In Nevada, Nutritional High has worked to integrate Green Therapeutics into its current activities and will complete the acquisition of a 75% interest and consolidate its revenues into the company's financial data upon receipt of city and state approval. Green Therapeutics is a vertically integrated manufacturer, extractor, manufacturer and distributor of award-winning concentrates and premium flowers currently sold in most state pharmacies.
Last year, the company saw the opportunity to take a pioneering role in a segment of the market that has yet to be explored – with Asian branded products. Through the former Thai Prime Minister's advisor and the newest director of Nutritional High, the company entered into an agreement with Golden Triangle Health Company to bring a family of established branded products to North America for infusion, sale and distribution. These are functional herbal products infused with CBD and other cannabinoids and either for ingestion or for topical use. The company will review the marketability of these products, and those that prove successful will eventually be commercialized in Asian countries where the legal environment allows it.
Nutritional High was fortunate enough to have raised both debt and equity from the Canadian capital markets and to use this money to grow the business. The company recognizes that the funding environment has changed and has taken action to focus on costs and adjust growth plans with a focus on partnerships. Nutritional High uses the current infrastructure in both sales and production to ensure that the business is sustainable and profitable.
Business Highlights: 4th Quarter 2019 and Following
- Nutritional High strengthened his leadership position with the appointment of Adam Szweras as CEO in June 2019. Mr. Szweras was the founder of the company and since his inception, has served in his leadership, most recently as co-chair of the board. Mr. Szweras replaced Jim Frazier, who has been CEO of the company since July 2016, and resigned to pursue other business opportunities. Mr. Szweras is a securities broker and investment banking expert with a proven track record in starting and scaling companies focused on cannabis. He is currently also a director of several leading cannabis companies, including Aurora Cannabis Inc., Harborside Inc. and Quinsam Capital Corp.
- In June 2019, the California State Corporation received provisional distribution license for NH Distribution California, LLC, based in Sacramento, and will begin distribution from that location upon receipt of the Business Operating Permit. BOP "). Oakland, Sacramento and Chatsworth's sales offices together form Nutritional High's top distribution network in California, consolidating its ability to service 1,000 – 2000 pharmacies which are expected to open in the state. This comprehensive network provides the architecture for a gradual change in delivery and pickup times, delivery accuracy, and minimization of warehouse requirements for retailers. Calyx is still the leader in the distribution of cannabis products in California and the largest food distributor . It has achieved a significant revenue growth from cannabis sales with the continued focus on revenue growth in the same stores and its service offering expanded to currently 600+ retail outlets in the US became state of California. At the same time, from millions of sales transactions, the company has built a robust data warehouse that provides world-class market intelligence and analysis, both in terms of product categories / segments and geographic demand.
- Calyx has gained 9 new brand partners since May 2019, and the company expects another substantial onboarding over the next 6 months. Calyx with its revised model offering flexible à la carte service offerings, is proving to be the leading distribution option for brands at every stage of their growth cycle.
- In May 2019, the Company and Green Therapeutics changed the MIPA (" Amended Agreement ") to exclude certain assets and related intellectual property not forming part of Nutritional High's manufacturing and distribution business model included. Reduction of the purchase price by 50% to 9 million USD . Under the amended agreement, Green Therapeutics will retain its current cultivation and manufacturing licenses, a pharmacy license and a distribution license. Reducing the purchase price and acquiring the highest-yielding assets allows the company to remain lean, focus on its core value proposition, and increase shareholder value, thanks to the revised agreement. The deal is pending approval from the state of Nevada and the city authorities. The financial data of Green Therapeutics are not yet included in Nutritional High's financial reporting.
- In Colorado, the Company is currently leasing its Pueblo property and equipment to Palo Verde LLC (" Palo Verde "), an independent third-party Colorado-licensed third party manufacturer of the company's brand , In May 2019, Colorado Governor Jared Polis signed Act HB19-1090 – "Publicly Licensed Marijuana Companies", which repeals the provision that listed companies may no longer have a marijuana license. The bill was passed by lawmakers in Colorado on April 27, 2019 and sponsored by two Democrats and two Republicans. The new law paves the way for Nutritional High to acquire potentially direct ownership interests in MED-licensed companies. Palo Verde has already achieved significant revenue growth in 2019 and focuses equally on the development of new product categories for the leisure and medical market. Palo Verde's financial results are currently not included in the financial results of the company.
- In October 2019, the company positioned itself to enter into a binding framework agreement with the Golden Triangle Health Company Ltd. (" Golden Triangle ") pioneered an under-explored market segment and markets Asian branded products in North America. Golden Triangle is a Thailand-based health and wellness company with a strong family of brands (the " Brands "), which aims to enter the North American market. Nutritional High will be responsible for providing market valuations in North America for branded products. The selected products will be responsible for infusion, packaging, marketing, distribution and sales in countries where these products are legal.
- The company changed its asset purchase agreement, which was previously closed in anticipation of regulatory approval in a trust agreement, to convert it into a share purchase agreement to streamline operations and simplify regulatory compliance. The Company now holds a total of 805 shares in Calyx without any additional consideration, with the option of acquiring the remaining 20% in return for a nominal consideration.
- In November 2019, the Company reached a settlement agreement with TKO Products LLC (" TKO ") in which the Company accepted a settlement for a total of $ 325,000. The Settlement Agreement releases all matters, including the counterclaim filed by TKO (see the company's press release of July 25, 2019).
About Nutritional High International Inc.
Nutritional High focuses on developing, manufacturing and distributing products under recognized brands in the cannabis product industry, with a special focus on edibles and oil extracts for medical and adult recreation. The Company works exclusively with licensed entities in jurisdictions where such activity is permitted and regulated by law.
The company follows a vertically integrated model with a fully developed acquisition strategy for the production, sale, and distribution of the cannabis industry. Nutritional High has brought its flagship FLÏ For up-to-date information on the company's activities, highlights of the company's press releases, and other media coverage, visit Nutritional High on Facebook, Twitter, and Instagram or www.nutritionalhigh.com.
For more information, please contact:
David Posner Chief Executive Officer
Nutritional High International Inc.
Investor Relations Director
Nutritional High International Inc.
E-mail: ethan @ nutritionalhigh. com
Neither the Canadian Securities Exchange nor OTC Markets Group Inc. nor its regulatory service providers have reviewed or assumed the responsibility for the accuracy or accuracy of this release.
This press release may contain forward-looking statements and information based on current expectations. These statements are not guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those contained in such statements. Risks that may affect the accessibility of these events include the completion of due diligence, the negotiation of final agreements, and the receipt of related approvals. Although such statements are based on reasonable assumptions made by management, no assurance can be given that such assumptions will prove to be correct. We assume no responsibility to update or revise it to accommodate new events or circumstances.
The Company's securities have not been registered in accordance with the United States Securities Act of 1933, as amended (" US Securities Act "), or applicable state securities laws, and may not be offered or sold to , or for the account or benefit of any persons in the US or "US Persons" as that term is defined in Regulation S under the US Securities Act, without registration or with any applicable exception to these Registration Requirements. This news release does not constitute an offer to sell or solicitation of an offer to buy or sell the securities in the United States or in jurisdictions where such solicitation, solicitation or sale would be unlawful.
In addition, there are known and unknown risk factors that may cause the Company's actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied by the forward-looking information contained herein become. All forward-looking information contained in this press release is qualified in its entirety by this cautionary statement, and the company disclaims any obligation to revise or update such forward-looking information or to publicly disclose the outcome of any revisions to the forward-looking information contained herein future results, events or developments, except as required by law. Risks and other factors that could cause actual results to differ materially from the forward-looking information contained in this news release include, but are not limited to: obtaining and maintaining regulatory approvals, including the acquisition and renewal of US states, local or US authorities other licenses, the uncertainty of existing protection against US federal or other prosecution, governmental or political changes, such as B. Amendments to applicable laws and regulations, including US legislation, the market and the general economic conditions of the cannabis sector or otherwise.
The contribution Nutritional High announces financial results for the financial year end 2019. He first appeared at Nutritional High International Inc.