NutraNomics Files 8K Affirming Acquisition of Fully Licensed Vertically Integrated Cannabis Operation

Rhea-AI Summary

NutraNomics, Inc. (OTC PINK:NNRX) has announced its full acquisition of DHS Development, Inc. (d/b/a The Plant), enhancing its presence in the cannabis sector. This strategic move includes a 30,000 sq. ft. manufacturing and 28,000 sq. ft. cultivation facility, along with over $2 million in specialized equipment. In 2021, The Plant reported $1.7 million in revenue from temporary operations, with a projected 2022 revenue of $15 million. The acquisition is expected to provide cash flow positive operations through expanded product lines, with all necessary licenses secured.

Positive

• Acquisition of The Plant enhances NutraNomics' market position in cannabis.
• Projected revenue for 2022 is $15 million, indicating significant growth.
• Expanded product offerings include beverage powders and infused products.
• All necessary licenses for manufacturing and distribution are in place.

Negative

• None.

DESERT HOT SPRINGS, CA / ACCESSWIRE / May 17, 2022 / NutraNomics, Inc. (OTC PINK:NNRX) ("NutraNomics" or the "Company"), an emerging leader in organic plant-based nutritional science and innovation, is pleased to announce its 100% acquisition of DHS Development, Inc. (d/b/a "The Plant"), and Affiliates.

"This transaction positions the Company for significant upside potential as an emerging leader in the vertically integrated cannabis products space," commented Jonathan Bishop, CEO of NutraNomics.

The Company's acquisition of The Plant includes the lease of a 30,000 square foot manufacturing and 28,000 square foot cultivation facility. In addition, NutraNomics has also already acquired over $2 million in related specialized equipment and continues to invest in productive hard assets for expanded operations involving extraction, production, and materials.

In 2021, The Plant generated $1.7 million in revenue operating from temporary facilities while the new building was under construction. During the first quarter of 2022, manufacturing was transitioned into the new facility, and the Q1 revenue run rate expanded to $879k (approximately $3.5 million on an annualized basis). The overall forecast for 2022 is $15 million in total top line sales, making the company cash flow positive through expanded product lines, including beverage powders, tablets, infused pre-rolls and concentrates. All necessary licensing is already in place for manufacturing, distribution, and sales of these new product lines.

Bishop added, "The Plant represents a vertically integrated operation with tremendous scalability. We look forward to providing more details in the very near future."

About NutraNomics

At NutraNomics, Inc. (OTC PINK:NNRX), we are committed to excellence in organic plant-based nutritional science and innovation. That was our stance when we began in 1996, and it is still our stance today.

NutraNomics Website: https://www.nutranomics.com

NutraNomics Twitter: https://www.twitter.com/nutranomicsinc

Forward Looking Statements
Any statements made in this press release which are not historical facts contain certain forward-looking statements; as such term is defined in the Private Security Litigation Reform Act of 1995, concerning potential developments affecting the business, prospects, financial condition and other aspects of the company to which this release pertains. The actual results of the specific items described in this release, and the company's operations generally, may differ materially from what is projected in such forward-looking statements. Although such statements are based upon the best judgments of management of the company as of the date of this release, significant deviations in magnitude, timing and other factors may result from business risks and uncertainties including, without limitation, the company's dependence on third parties, general market and economic conditions, technical factors, the availability of outside capital, receipt of revenues and other factors, many of which are beyond the control of the company. The company disclaims any obligation to update the information contained in any forward-looking statement. This press release shall not be deemed a general solicitation.

Press Contact:
Geoff Bazegian
IR@nutranomics.com

Public Relations:
EDM Media, LLC
https://edm.media

SOURCE: NutraNomics, Inc.

View source version on accesswire.com:
https://www.accesswire.com/701644/NutraNomics-Files-8K-Affirming-Acquisition-of-Fully-Licensed-Vertically-Integrated-Cannabis-Operation

FAQ

What is the significance of NutraNomics' acquisition of The Plant?

The acquisition positions NutraNomics as a leader in the vertically integrated cannabis products space, with plans for significant revenue growth.

What revenue did The Plant generate prior to the acquisition?

In 2021, The Plant generated $1.7 million in revenue while operating from temporary facilities.

What is the expected revenue run rate for NutraNomics in 2022?

The company anticipates a revenue run rate of approximately $3.5 million annualized following the acquisition.

What new products will NutraNomics offer after the acquisition?

NutraNomics plans to expand its product lines to include beverage powders, tablets, infused pre-rolls, and concentrates.