– Outsourcing of sales allows the company to reduce costs and focus on streamlining retail and wholesale operations –
SAN DIEGO and TORONTO, October 3, 2022 /CNW/ – StateHouse Holdings Inc. (“StateHouse” or the “Company”) STHZ STHZFa California-focused, vertically integrated cannabis company announced today that it has entered into a strategic partnership (the “Partnership”) with Nabis, California’s largest cannabis distributor, under which the company outsources all of its cannabis distribution.
Effective today, under the terms of the partnership, Nabis has assumed all of StateHouse’s distribution obligations. Nabis has a leading wholesale cannabis platform in California and is the largest retailer of cannabis in the state. It is the ideal partner to ensure broad and efficient distribution of StateHouse products. Given the size of the Nabis platform, StateHouse expects the partnership will expand the reach of its brands across the state(1).
The partnership should lead to cost savings in the millions(1) for state house. Savings are expected to come from reduced headcount and reduced costs related to insurance, fuel, truck leasing, bank charges and overtime pay.
Outsourcing sales also allows the company to focus more on optimizing its leading retail and wholesale operations in Germany California to further expand margins and market share.
“We are very pleased about this strategic partnership with Nabis, a strong and reliable sales partner with a wide reach California,” said Ed Schmults, Managing Director. “The cost reductions we anticipated and the expanded distribution footprint(1) From this partnership will be very beneficial as we work to build a business that we anticipate will be EBITDA(2) positive next year.”
Remarks
(1) This is forward-looking information and is based on a number of assumptions. See “Cautionary Notice Regarding Forward-Looking Information” below.
(2) This is a non-IFRS…
