Mr. David Posner reports

NUTRITIONAL HIGH REPORTS ACCELERATED CALYX SALES AND UPDATES CALIFORNIA DISTRIBUTION PLANS

Nutritional High International Inc. has noted an acceleration and expansion in the company's California operations.

April, 2019, was a record sales month for Calyx Brands Inc., Nutritional High's wholly owned California-based distributor. Calyx recorded monthly revenue in excess of $1.85-million (U.S.) (approximately $2.5-million), reflecting strong demand for core products driven by development of additional distribution capacity. In addition, estimated and unaudited gross margin rose to 15 per cent, in line with management's expectations. Calyx continues to expand its distribution network and now services more than 500 licensed retail dispensary outlets in the state of California.

As disclosed in the press release dated April 1, 2019, for the 12 months ended Jan. 31, 2018, Calyx reported revenue of approximately $17.2-million, with sales in the second half of the period increasing by 96 per cent to $11.4-million from $5.8-million in the first half of the period. Over the same period, gross margin increased by approximately 10 per cent.

The company has also received approval to modify the conditional-use permit (CUP) attached to Nutritional High's FLI Labs northern California facility in Sacramento, Calif. Pending final regulatory approval, the modification will add another distribution hub to Calyx's network and reinforce its position of leadership in the burgeoning northern California cannabis market. Upon receipt of the requisite building permits, the company will commence buildout of the warehousing space, seek a certificate of occupancy and apply for an operating permit to launch distribution operations. Once operational, the additional infrastructure will significantly increase the company's ability to influence retail shelf space in California through enhanced market access, order fulfilment frequency and a wider breadth of branded product offerings.

"We maintain our commitment to becoming one of the leading manufacturers and distributors of cannabis products in Western U.S.," commented Adam Szweras, co-chairman of Nutritional High. "We have proven out our strategy in California, where we are the top distributor of edibles, and will continue expanding our footprint in the state. We are moving ahead with core strategic focus on California and Nevada, while progressively executing our commercial growth plans in other jurisdictions as well."

Nutritional High and Tres Ojos Naturals LLC mutually elected not to proceed with the previously announced acquisition (announced Jan. 29, 2019). The company will, however, continue to distribute SolDaze through its wholly owned subsidiary, Calyx, and very much looks forward to a continued close relationship with the SolDaze team.

About Nutritional High International Inc.

Nutritional High is focused on developing, manufacturing and distributing products under recognized brands in the cannabis products industry, with a specific focus on edibles and oil extracts for medical and adult recreational use. The company works exclusively with licensed facilities in jurisdictions where such activity is permitted and regulated by state law.

The company follows a vertically integrated model with a fully developed strategy for acquisitions in extraction, production, sales and distribution sectors of the cannabis industry. In California, the company distributes its products and products manufactured by other leading producers through its wholly owned distributor, Calyx Brands, and is entering the Nevada, Washington State and Canadian markets in the near future.

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