Nutritional High (CSE:EAT, OTCQB:SPLIF, FWB:2NU) is focused on developing, manufacturing and distributing premium and consistently dosed cannabis-infused products, including edibles and oil extracts, for nutritional, medical and recreational use. The company works exclusively through licensed facilities in jurisdictions where such activity is permitted and regulated by state law.
Nutritional High entered the US market by developing a presence in Colorado, where the company has a fully-operational team of specialists in one of the state’s largest and most automated oil extraction and infused edibles facilities. Through agreements with Palo Verde LLC, Nutritional High has access to a cannabis-infused product manufacturing license. Under this, the company has developed a production and distribution foothold for its FLÏ brand, which includes vape pen cartridges, oil syringes and edibles aimed at nutritional, medical and recreational use.
The company’s current priority is establishing a dominant foothold in California. To help meet the state’s demand for cannabis, Nutritional High has acquired Calyx Brands, a cannabis distribution company; Pasa Verde LLC, an extraction and toll facility; and various companies specializing in cannabis-infused edibles and drinks. Nutritional High’s acquisitions allow it to process and distribute its own FLÏ-branded products.
The company utilizes a process of mechanical separation, cold ethanol extraction and short path distillation to produce its vaporizer cartridges. By using ethanol, Nutritional High removes the risk of combustion which is a result of using butane extraction.
Expanding its footprint beyond California and Colorado, Nutritional High has also acquired cultivation and processing facilities in Nevada and Oregon.
Canada’s cannabis market is another of Nutritional High’s targets as the Canadian cannabis market is expected to be worth $2.5 billion by 2020. As a result, Nutritional High has partnered with Abba Medix, a Canada House (CSE:CHV) subsidiary, to distribute oils under Nutritional High’s FLÏ brand and has constructed a 2,000-square foot extraction facility in Ontario. An added benefit of acquiring an extraction license in Canada is that Nutritional High is now free to export internationally to the markets in Europe and Asia.
Aside from Canada, Nutritional High is exploring expansion opportunities in Asia and has retained Tom Kruesopon to develop business opportunities on the continent. Through this agreement, Nutritional High has formed a five-year agreement with Thailand-based Golden Triangle Health Company Ltd. to manufacture and distribute branded products in North America, bringing Asian brands to the North American cannabis market. Nutritional High expects to receive a 75 percent sales fee.
Nutritional High’s Company Highlights
- Established ethanol extraction methods that filter out contaminants and remove additional risk
- Strategic partnerships with various cannabis-related companies
- Established presence in Colorado in one of largest oil extraction facilities in the state having launched FLÏ brand
- Launched a FLÏ-branded cannabis awareness campaign
- Long-standing relations with experienced California cannabis industry players
- Extracts with the largest profit margins in the cannabis industry
- Calyx has generated $7.4 million in top-line revenue and incurred approximately $6.1 million in cost of sales over a six-and-a-half-month period
- The company doubled Calyx’s distribution capacity in June 2019.
- Calyx’s distribution network includes over 600 licensed retailers in California.
- Partnership with licensed Canadian extraction company providing international exportation opportunities
- Nutritional High’s agreement with Golden Triangle provides the company with access to successful Asian cannabis brands and can facilitate the company’s entry into the region.
- Acquisitions in California provide control over distribution and extraction
- Nutritional High is currently operating in three US states
- Nutritional High is exploring business opportunities in Asia.