Toronto, Ontario – January 7, 2019 – Nutritional High International (“Nutritional High” or the “Company”) (CSE: EAT, OTCQB: SPLIF, FRANKFURT:2NU) is pleased to announce that it has entered into an agreement with Docklight, LLC of Seattle, Washington, to license a number of well-known brands including the Marley Natural brand (“Marley Natural”), for use in connection with inhalable cannabis products (whole flower, pre-roll, and oil cartridges) in Washington and Oregon.
Marley Natural, the official cannabis brand of Bob Marley, offers a comprehensive line of products including cannabis, body care, and accessories. In addition to Marley Natural, the license agreement grants Nutritional High the rights to produce, market and sell additional inhalable cannabis product lines including DutchyTM, HeadlightTM, IrisaTM, GrailTM and Martian GardensTM.
Nutritional High develops, manufactures and distributes recognized brands in the cannabis industry.“With our emphasis on the US West Coast, the states of Washington and Oregon are always considered strategically important to us,” commented Jim Frazier, Nutritional High’s Chief Executive Officer. “Marley Natural is an iconic brand that consumers love. By capitalizing on current assets and leveraging our existing retail marketing relationships – including a dedicated team of brand managers and sales specialists in market – we’ll be able to put products on shelves quickly with the right retail strategy in place,” added Frazier.
In Washington, Nutritional High will sublicense the rights to manufacture the branded products to a locally-licensed facility. In connection therewith, the Company has also successfully completed the transactions contemplated in the Asset Purchase Agreement (the “Agreement”) announced on January 3, 2019 press release, between its wholly-owned Nevada subsidiary (the “Subsidiary”), and a Washington limited liability company (the “Seller”). The Agreement has been closed on January 4, 2019 for a purchase price of US$3,675,000, and has been settled as follows:
- US$150,000 deposit (paid)
- US$525,000 cash paid on closing; and
- US$3,000,000 in common shares of the Company (the “Shares”). Subject to the policies of the CSE, the Shares are to be issued based on a 20-day VWAP of the Shares prior to the date of each issuance. The Company issued US$2,000,000 in Shares on closing (being 13,432,098 common shares issued at a deemed issue price of C$0.2025 per share). US$500,000 worth of Shares are to be issued on the date that is six months after closing, and a further US$500,000 worth of Shares on the date that is nine months after closing.
In Oregon, Nutritional High will manufacture the branded products at its newly launched La Pine facility. The license agreement is renewable annually subject to certain hurdles. The license comes into effect immediately and production will begin in short order, with products anticipated to arrive on