California
state has granted provisional distribution license to the Sacramento facility
of Nutritional High International Inc
(OTCMKTS:SPLIF)
. The company will start the distribution
operations on getting the local permit.

Co-Chairman of Nutritional High, Adam
Szweras said the company framed distribution strategy in 2018. The license is a
step in this direction to become the biggest cannabis products distributor in
the state. Together with its hubs in Chatsworth, and Oakland, the new
Sacramento facility forms the backbone of the distribution architecture in the
state. It allows Nutritional High to expand the product reach in the state.

Cannabis
sales at $6.5 billion

The legalized sales of cannabis in
California are expected to reach $6.5 billion by the year 2022 from $2 billion
in 2018. Licensed dispensaries count increased to 650 in Q4 2018, an increase
of 200 from the previous quarter. However, the penetration is still on a lower
note when compared to 540 retail licensees in Colorado that have a population
of 5.6 million.

Calyx Brands is a wholly owned
distributor of cannabis products of Nutritional High. Chief Executive Officer
of Calyx Brands, Dakota Sullivan said the statewide facility is developed to
serve 2,000 or more dispensaries in the coming years in California and not just
the present 600 stores. He further said the warehouses located in key locations
like Sacramento and Chatsworth allows the company to ensure the availability of
products to the producers from growers in a cost-effective manner and in a
short time.

Shipping hubs, including Chatsworth
and Oakland facility, are strategically located in the center of fastest
growing markets in Southern and Northern California to deliver the products to
dispensaries quickly. It reduces the demand for more storage needs and
simplifies life.

Signs
LOI

Nutritional High signed a non-binding
letter of intent with Hannah Ashby and Good Vybes LLC. As per the terms of the
deal, they provide a base for Calyx Brands operations in Southern California.

The accord allows the company to
double distribution capacity in the state. Nutritional High can now expand the
services to communities including Palm Desert, Palm Springs, Long Beach, Los
Angeles, San Diego County, and the Inland Empire.