Nutritional High Enters into Agreement to Acquire Psychedelic Product Development Company
Toronto, Ontario--(Newsfile Corp. - June 1, 2020) - Nutritional High International Inc. (CSE: EAT) (OTCQB: SPLIF) (FSE: 2NU) ("Nutritional High" or the "Company") is pleased to announced that today it has signed of a letter of intent to purchase 100% of Kruzo LLC, a company focused on developing products and conducting research on the psychoactive cacti Peyote. Kruzo also develops other plant-based medicinal products derived from Asian herbal medicine as well as cannabis.
Mescaline, a psychoactive compound similar to psilocybin, can be extracted from the Peyote cactus. Mescaline is believed to help reduce depression and other mental illnesses. Peyote also contains 57 naturally occurring alkaloids, alkaloidal amines and amino acids, including a substance called Hordenine. Hordenine is included in many dietary supplements as a means to improve athletic performance and manage weight loss. Kruzo is expected to team up with Thai researchers and Rangsit University in Pathum Thani, Thailand to investigate the potential of Peyote derived compounds and products to control obesity, for combatting depression, and other applications.
Kruzo has previously focused on the development of products combining CBD and other cannabinoids with Thai based herbal medicine. To this end, Kruzo developed an acne treatment which is being prepared for commercial launch. Kruzo has a working relationship with Rangsit University and expects to formalize this relationship to investigate the utility and efficacy of combining mescaline and other Peyote alkaloids with traditional Asian herbal products as well as CBD and other cannabinoids.
Nutritional High director Tom Kruesopon is a shareholder of Kruzo and helped to launch the company which has operations in Thailand and Nevada. It is expected that Mr. Kruesopon will continue to work with Kruzo, Nutritional High and his joint venture company Golden Triangle to further develop an Asian strategic focus for Nutritional High. Furthermore, the acquisition of Kruzo will allow Nutritional High to broaden its focus to encompass other plant-based wellness products in addition to and in combination with cannabis. While cannabis products will continue to be the Company's main focus in the US, it is expected that Kruzo will provide an important source of future product innovation and diversification.
Prior to completion of the acquisition, Kruzo will form a Canadian parent company which will raise approximately $1.5 million. Upon the acquisition of Kruzo (or a parent company) Nutritional High expects to issue 150 million shares at $.035 per share and a number of share purchase warrants to be determined. Further details will be provided once binding agreements have been negotiated.
"This acquisition is part of our plan to continue to pivot Nutritional High's focus to its highest margin product categories," said CEO John Durfy. While we will continue to develop, manufacture and sell cannabis products, the Kruzo acquisition will enable us to incorporate psychoactive and a broad range of functional plant-based derivatives into our product offerings."
Nutritional High Chairman Adam Szweras commented: "We believe that, similar to psilocybin, the Peyote cactus plant and other psychoactive cacti may have potential to assist in the treatment of depression, obesity and a number of mental health related ailments. We believe the acquisition of Kruzo will significantly strengthen our science team and advance our business strategy in Asia."
Given the partial ownership of Kruzo by one of the Company's directors, Tom Kruesopon, this acquisition is considered a related party transaction. There is no finders fee associated with this proposed transaction.
About Nutritional High International Inc.
Nutritional High is focused on developing and manufacturing branded products in the cannabis industry, with a specific focus on edibles and oil extracts for medical and adult recreational use. The Company works exclusively in jurisdictions where such activity is permitted and regulated by state law. Nutritional High has brought its flagship FLÏ™ edibles and vape product lines from production to market in various markets including Colorado where its award winning FLÏ™ products are manufactured by Palo Verde, LLC. The Company signed a purchase agreement for Palo Verde and is awaiting regulatory approval. In California, the Company distributes products through its wholly owned distributor Calyx Brands Inc. For updates on the Company's activities and highlights of the Company's press releases and other media coverage, please follow Nutritional High on Facebook, Twitter and Instagram or visit www.nutritionalhigh.com.
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Nutritional High International Inc.
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Additionally, there are known and unknown risk factors which could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein. All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law. Some of the risks and other factors that could cause actual results to differ materially from those expressed in forward-looking information expressed in this press release include, but are not limited to: the ability of the Company to complete the full issuance of up to $5 million of Convertible Debenture Units, obtaining and maintaining regulatory approvals including acquiring and renewing U.S. state, local or other licenses, the uncertainty of existing protection from U.S. federal or other prosecution, regulatory or political change such as changes in applicable laws and regulations, including U.S. state-law legalization, market and general economic conditions of the cannabis sector or otherwise.
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