StateHouse Holdings has entered into a strategic partnership with Nabis, under which the Company is outsourcing all of its cannabis distribution.
Under the terms of the Partnership, Nabis has assumed all of StateHouse's distribution obligations effective today. "Nabis has a leading cannabis wholesale platform in California and is the state's single largest distributor of cannabis. It is the ideal partner to ensure broad and efficient distribution of StateHouse's products. Given the scale of the Nabis platform, StateHouse expects the Partnership to expand the reach of its brands across the state."
The Partnership is expected to create millions of dollars of cost savings for StateHouse. Savings are expected to be achieved through lower headcount and through reduced costs related to insurance, fuel, truck leasing, banking fees, and overtime pay.
Outsourcing distribution also enables the Company to put greater focus on optimizing its leading retail and wholesale operations in California to further expand margins and market share.
"We are very pleased to enter this strategic partnership with Nabis, a strong and reliable distribution partner that has extensive reach across California," said Ed Schmults, Chief Executive Officer. "The cost reductions and expanded distribution footprint that we anticipate from this partnership will be highly beneficial as we work to build a business that we expect will be EBITDA positive next year."
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