Nutritional High International Inc (OTCMKTS: SPLIF) Time To Buy The Dip

Nutritional High International Inc (OTCMKTS: SPLIF) is still a discount entry opportunity, as was the case in our previous update. After a steep correction lower, the stock has once again started edging higher, in response to improving underlying fundamentals.

Catalysts And Price Analysis

One of the key drivers fuelling a Bounce back is the confirmation that the Company generated record cannabis sales in Q2 2019. Acceleration and expansion in California operations is another development that continues to prop the stock’s sentiments in the market.Nutritional High International is also in the process of divesting non-core assets, relating to flower cultivation, as it looks to shift resources to growth areas. The Company is also in the process of closing a $3 million private placement as it looks to strengthen its balance sheet.A flurry of positive developments has continued to trigger renewed investor interest in the stock, which explains a change in the direction of trade. Nutritional High International has since bounced off the $0.15 mark, after a steep correction from the $0.24 mark. SPLIF Daily ChartThe stock needs to rally and take out the $0.20 mark to reaffirm the emerging uptrend and set the stage for further gains back to this year highs. Conversely, a breach of the $0.15 mark on further pullbacks, could give short sellers a reason to continue pushing the stock lower.

What Does Nutritional High International Do?

Nutritional High International is a company that develops, manufactures and distributes products under recognized brands in the cannabis industry. Its pipeline of products is made up of cannabis oils, extracts and edibles distributed for both medical adult use purposes.[embed]https://www.youtube.com/watch?v=xBK9-mrBnS0&t=2s[/embed]

Revenue Growth Boost

Nutritional High International has started bottoming out after a major correction on serving a number of groundbreaking catalysts that have strengthened investor confidence in the stock. The confirmation that the Company generated record cannabis sales of $6.1 million in Q2, affirms robust growth trajectory. Q2 record sales point to an annualized revenue run rate of $24.2 million.During the quarter, the Company achieved significant milestones key among them being the enhancement of the senior management strength. In that regard, the Company appointed Tom Siciliano as the President, as Michael DiNapoli took over as the Chief Financial Officer.

“With Q2 2019, we continue to deliver on our results. We have maintained and increased our revenue base in California, while also successfully executing on margin enhancing initiatives. Our in-house flagship FLI Brand has demonstrated promising market traction, which is only the start of a major penetration in the upcoming months,” explained CEO Jim Frazier.

California Expansion

The Company also continued to expand and strengthen its operations in California, having expanded its product portfolio. The signing of an agreement for the purchase of a 51% interest in Tress Ojos Naturals, paves the way for the Company to become a manufacturer of premium, high-quality cannabis-infused dried fruit bites.Nutritional High International California-based wholly owned distributor, Calyx continues to gain traction having achieved record sales in April. The distributor recorded sales of as much as $1.85 million, signaling strong demand for core products. The distributor is expanding its distribution network as it seeks to serve as many as 500 licensed retail dispensary outlets in the state.

“We have proven out our strategy in California, where we are the top distributor of edibles and will continue expanding our footprint in the state. We are moving ahead with core strategic focus on California and Nevada, while progressively executing our commercial growth plans in other jurisdictions as well,” commented Adam Swears, Co-Chairman of Nutritional High.

Nutritional High International has also entered into an agreement with Green Therapeutics as part of an effort of divesting non-core assets. The assets the Company is spinning off relate to flower cultivation operations.The sale of the assets will allow the Company to focus on manufacturing and distribution of CBD, an area the Company continues to register traction and growth.

Bottom Line

Nutritional High International is finally coming through after coming under pressure in recent months. A solid Q2 earnings report underlining growth trajectory continues to strengthen investor confidence in the stock.The Company enjoying robust growth in California through its wholly owned subsidiary Calyx is another development that affirms growth and long-term prospects. That said the stock is a buy the dip opportunity.We will be updating our subscribers as soon as we know more. For the latest updates on SPLIF, sign up below!Disclosure: We have no position in SPLIF and have not been compensated for this article.