Chemesis International Inc. (CSE:CSI), is pleased to announce it has entered into a binding supply agreement with a California distribution company that delivers premium lab tested cannabis to dispensaries and producers throughout the state of California.
The vendor is well known for their high standards in meeting compliance with thorough testing, efficient distribution, and top of the line equipment. The vendor tests the cannabis for potency, moisture, terpene, and pesticides, both microbiological and residual solvents. Chemesis will be provided with trim that will allow the facility to produce our high-quality oil for the California Sap brand and other white labeled products.
Under the terms of this agreement, the vendor is to provide 10,000 lbs/month of clean tested trim which yields a minimum of 10% return upon processing at the Cathedral City Facility. This supply agreement is highly beneficial to both companies, as Chemesis is able to produce high quality oil for distribution in California and the vendor is able to provide its high-quality tested cannabis for manufacturing. The vendor leverages a strong supply chain to ensure the supply agreement is consistently fulfilled.
“This is a critical achievement that positions the Company for significant growth in the California market, particularly with recent regulation changes restricting many in the California market. The Company is confident this agreement will build a strong revenue stream while continuing to build an efficient and streamlined manufacturing facility in Cathedral City. Chemesis will continue to build value by maintaining cost efficiency and ensuring we are supplying the market with high quality oils,” said Edgar Montero CEO of Chemesis.
Due to the competitive nature of the cannabis market in California, the Company will not disclose who the vendor is at this time.