Nutritional High International (EAT.C) entered into a binding letter agreement for the acquisition of California-based fully vertically integrated cannabis producer, OutCo Labs, today, according to a press release.
Nutritional High intends to leverage OutCo’s production and connections as their growth engine for California, which they’ll use to launch their brands across the state.
“This acquisition is transformative for Nutritional High and will provide the company with a platform to execute our expansion into California. We’ve examined multiple entry points to establish in-house production and robust commercialization capabilities in California and this transaction checked every box. It is expected to accelerate top-line growth, enable efficiencies across our operations through the addition of OutCo’s highly skilled operating team, and bring a pipeline of market and product expansion potential that we expect to execute on over the next several years. We’re looking forward to working closely with Lincoln Fish and his team to work on growth and optimization initiatives together,” said John Durfy, CEO of Nutritional High.
OutCo’s specialty is in manufacturing and retailing their cannabis flower and high-margin extract products, including their award-winning vapes, tinctures, topicals, capsules and flower products, which are sold in their retail stores and third party dispensaries throughout the state. Nutritional High is getting an established operator in the biggest cannabis market in the world with annual revenues of USD$8 million.
- Accelerates top-line growth, OutCo adds $8-million (U.S.) of annual run rate revenue;
- Increased scale and broader access to capital;
- Manufacturing and cultivation capacity will support the introduction of Nutritional High’s full suite of branded products in California;
- Top-selling OutCo-branded products (Thrive and Outco) enhance premium brand recognition;
- Opportunity to manufacture and wholesale OutCo’s higher-margin branded products across Colorado and Oregon; and
- Cost synergies in commercial execution, manufacturing operations, and company-wide general and administrative.
Nutritional High is up 33% today, and presently trading at $0.02. Sounds kind of anticlimactic, doesn’t it?