Canadian CANNAINVESTOR Magazine May 2017 - Page 101

Corporate Strategy

Nutritional High is seeking to expand nationally by either pursuing organic growth strategies or pursuing acquisition opportunities focused on:

Cole Memo Compliant Operations Only

Our focus is only on the operations which operate within adequate licensing frameworks and are in compliance with the requirements of the Cole Memo.

High Growth Potential States

Nutritional High selects the states which have a high growth potential. While the U.S. states which have legalized marijuana for adult recreational use are the primary focus, Nutritional High will take steps to expand into the states which have legalized marijuana for medical use with significant population base, or have potential for legalization for adult recreational use in the near to medium term.

Focus on High-Margin Segments

Nutritional High is focused on the edibles and oil extracts segment of the marijuana industry, which it believes to have the highest margin potential and provide an opportunity for rapid scaling. The Company may work in other value chain segments (such as cultivation or retail dispensaries) in the jurisdictions which have implemented a "seed-to-sale" regulatory licensing model, or where a focus solely on edibles or oil extracts is too prohibitive on stand-alone basis.

Compliant Structure and Transparency with the Regulators

In the U.S. States with residency requirements, the Company will work exclusively with Licensed Operators to provide a suite of services (such as providing real estate, financing, brands and expertise) to facilitate expansion of the Licensed Operator’s business in the edible MIPs and oil extract markets. In the states without the residency requirements the Company may also apply for licenses directly or enter into JV arrangements with other companies.

Creating Leading Products

Manufacturing high quality products with consistent THC levels has been one of the dominant problems faced by the industry. Nutritional High aims to manufacture products that can become industry leading in terms of quality, THC levels and have appealing packaging design in each market from day one.

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