Nutritional High International Inc (OTCMKTS:SPLIF) announced recently that its distribution facility located in Southern California has been granted operational approval.
The company revealed that it signed a letter of intent together with Hannah Ashby and good Vybes, LLC to facilitate the availability of a Southern California distribution facility for Calyx Brands. The latter is Nutritional High International’s distributor of cannabis products. Ashby received Los Angeles City’s green light to carry out cultivation, manufacturing and distribution activities and the letter of intent revealed that those activities will kick off as early as this month.
“We’re very pleased with the speedy advancement of this project with Hannah Ashby and good Vybes,” stated Nutritional High co-chairman Adam Szweras.
The Southern California distribution facility is a key addition to the distribution infrastructure
Szweras also noted that the new facility will allow the company to boost its infrastructure in Southern California and also to boost Calyx’s service level within the region. The company executive added that the operating approval marks a major milestone for Nutritional High and it expects it to offer rapid growth opportunities to Calyx.
Szweras revealed that the facility’s new license brings the company closer to being the largest cannabis product distributor in California. Calyx CEO Dakota Sullivan pointed out in a statement that the architecture of the facility can service more than the 600 stores that currently exist in the state. However, it has a higher capacity and can handle up to 2,000 more stores that will likely be launched in the next few years.
Sullivan acknowledged that his company’s main warehouses are strategically located along major transport corridors in Chatsworth and Sacramento. This allows Calyx to rapidly move the product from the growth sites to manufacturing facilities across the state and then into the supply chain. This efficiency in the system also facilitates a lot of cost-cutting.
Calyx is also able to rapidly deliver the product to dispensaries by tapping into flexible shipping facilities. This includes the Chatsworth and Oakland facility which are located in fast-paced Southern and Northern California markets. The newly licensed facility will therefore play a vital part in preparing for future demand.