California state has granted provisional distribution license to the Sacramento facility of Nutritional High International Inc (OTCMKTS:SPLIF). The company will start the distribution operations on getting the local permit.
Co-Chairman of Nutritional High, Adam Szweras said the company framed distribution strategy in 2018. The license is a step in this direction to become the biggest cannabis products distributor in the state. Together with its hubs in Chatsworth, and Oakland, the new Sacramento facility forms the backbone of the distribution architecture in the state. It allows Nutritional High to expand the product reach in the state.
Cannabis sales at $6.5 billion
The legalized sales of cannabis in California are expected to reach $6.5 billion by the year 2022 from $2 billion in 2018. Licensed dispensaries count increased to 650 in Q4 2018, an increase of 200 from the previous quarter. However, the penetration is still on a lower note when compared to 540 retail licensees in Colorado that have a population of 5.6 million.
Calyx Brands is a wholly owned distributor of cannabis products of Nutritional High. Chief Executive Officer of Calyx Brands, Dakota Sullivan said the statewide facility is developed to serve 2,000 or more dispensaries in the coming years in California and not just the present 600 stores. He further said the warehouses located in key locations like Sacramento and Chatsworth allows the company to ensure the availability of products to the producers from growers in a cost-effective manner and in a short time.
Shipping hubs, including Chatsworth and Oakland facility, are strategically located in the center of fastest growing markets in Southern and Northern California to deliver the products to dispensaries quickly. It reduces the demand for more storage needs and simplifies life.
Nutritional High signed a non-binding letter of intent with Hannah Ashby and Good Vybes LLC. As per the terms of the deal, they provide a base for Calyx Brands operations in Southern California.
The accord allows the company to double distribution capacity in the state. Nutritional High can now expand the services to communities including Palm Desert, Palm Springs, Long Beach, Los Angeles, San Diego County, and the Inland Empire.