Nutritional High received a $2 million conditional lease commitment for the funding of new extraction and lab processing equipment from Veterans Capital.

The terms of the deal are as follows:

• The lease line of credit will have a three-year term with fixed monthly lease rental payments based on a monthly lease rate factor of 3.3694% of the capital cost.
• Funding under the proposed lease line of credit will be in increments of $500,000 or as per each lease schedule.
• Nutritional High has the option to extend the lease term for a minimum of 12 months at renewal.
• The lease line of credit provides for a buyout option, whereby the Nutritional High has an option to purchase all the equipment under the lease line of credit for fair market value, which shall not exceed 14% of the capital cost.
• The lease line of credit will be secured by various new extraction and lab processing equipment, attachments, parts and warranties.
• Nutritional High will issue 1,000,000 warrants at an exercise price of C$0.70 per share, expiring three years from the date of closing. Twenty-five percent of the total warrants shall vest upon execution of the lease line of credit agreement and the remaining 75% will vest on a pro-rata basis as Veterans Capital funds the lease schedules.
• Nutritional High will pay Veterans Capital certain other fees based on amount funded under the lease schedule.

Nutritional High intends to use the lease line of credit to purchase equipment for the following projects:

• Pasa Verde facility in Sacramento, CA
• Palo Verde facility in West Pueblo, CO
• Green Therapeutics facility in North Las Vegas, NV

Closing of the lease line of credit is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and stock exchange approvals, including the approval of the Canadian Securities Exchange and execution of definitive agreements.

Jim Frazier, CEO of Nutritional High, said, “We are pleased to continue our working relationship with Veterans Capital and look forward to deploying these funds to enhance the technological footprint of our facilities in the US. These additions will help us to continue executing the roll out of our strategic plan in California and our other targeted markets. Having access to this capital allows us the flexibility to pursue opportunities that can generate maximum value for our shareholders.”

Nutritional High develops, manufactures and distributes products in the cannabis industry, with a specific focus on edibles and oil extracts for medical and adult recreational use.