StateHouse Holdings Inc. (CSE: STHZ) (OTCQX: STHZF) has now made a strategic business move aimed at cutting costs while maintaining efficiency.
On Tuesday, the California cannabis company announced that it had engaged in a partnership with Nabis, one of the largest cannabis distributors in the Golden State.
The company is one of over 200 utilizing Nabis services, and as of today, the distributor has assumed all of StateHouse’s distribution obligations.
“We are so honored to be a part of the StateHouse portfolio that will help drive the brands’ already impressive momentum, facilitate their scale and make it much easier for their 14 California dispensaries to consolidate orders and deliveries,” said Jun S. Lee, co-founder of Nabis.
StateHouse says that the scale of the Nabis platform will enable the company to expand its brands throughout California and that the new partnership will save the organization millions of dollars. Those savings will be achieved through reduced insurance costs, banking fees, fuel expenses, truck leasing bills and overtime pay.
The company also says that outsourcing its distribution will allow it to focus on improving its wholesale and retail operations.
“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, CEO of StateHouse.
“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.”