- Cannabis company, Nutritional High International (EAT) has signed a purchase agreement with DB12 LLC, for the sale of Calyx Brands
- Calyx is a cannabis products distributor, which will benefit from funding and flower product made available through the transaction
- Nutritional High will sell all equity in Calyx, assuming C$7 million in liabilities and minority ownership of DB12 in return
- The transaction closing is dependent on a number of conditions, which should be met within the next 30 days
- Nutritional High International (EAT) remains unchanged and is currently trading at 2.5 cents per share
Cannabis company, Nutritional High International (EAT) has signed a purchase agreement with DB12 LLC, for the sale of Calyx Brands.
The sale includes Calyx Brands and NH Distribution California Inc and Calyx Brands Inc, all falling under the name Calyx.
Calyx is a wholesale distributor of cannabis and cannabis-derived products, which provides packaged goods and flower from over 20 farms. The brand has a Type 11 distribution license from the Bureau of Cannabis Control of the State of California.
As such, Calyx is able to distribute both medical and adult-use cannabis, from manufacturers to dispensaries.
Nutritional High decided to sell Calyx to a strategic partner, as part of the company’s strategic review process. Calyx will benefit from the sale, which will provide access to funding and a substantial source of cannabis flower product.
Nutritional High will sell 100 per cent equity interest in Calyx to DB12. In return, the company will assume approximately C$7 million in liabilities, plus a minority ownership position in DB12.
The transaction will also give Nutritional High the ability to earn extra equity interest, conditional on growth in branded revenues.
Nutritional High’s CEO, John Durfy, commented on the benefits of the company’s sale of Calyx Brands.
“Through retaining minority ownership in DB12, Nutritional High will continue to have access to the California market for distribution of our own brands, potentially significant upside associated with ownership of the larger and more integrated DB12 operation, while continuing to improve our balance sheet.
“We are very pleased to partner with DB12, and look forward to a successful partnership,” he said.
The transaction closing is dependent on a number of conditions, which should be met within the next 30 days.
Nutritional High International (EAT) remains unchanged, and is trading for 2.5 cents per share, as of 2:04pm EDT.