Cannabis Distributors Kiva Sales & Service and Petalfast Sign Letter of Intent to Combine

OAKLAND – Kiva Sales & Service (KSS), a leading sales and distribution agency focused on California’s Cannabis market, signed a letter of intent to combine operations with Petalfast, a national platform known for sales, distribution and retail services in regulated Cannabis markets.

The companies said the move would increase operational scale, improve efficiency and broaden market access for suppliers in California, Arizona and other states. Supplier and buyer relationships would continue without interruption, with both sales teams preserved and organized into category-specific divisions for stronger expertise.

Scott Palmer, CEO and co-founder of KSS, said in the announcement: “By combining forces with Petalfast, we are building a more resilient, technology-driven engine that ensures the best Cannabis products have a sustainable, professional path to consumers.” He pointed to the addition of enhanced digital tools and talent as key to better partner support.

The combined group plans to introduce KSS Lite, a simpler distribution option for brands that handle their own sales while still using the network’s logistics and retail reach. KSS will keep its full-service model, which includes deep retailer collaboration and guaranteed payments. The deal also expands use of KSS Live, the agency’s digital ordering platform that already reaches 60% of buyers.

Arun Kurichety, co-founder and CEO of Petalfast, will become acting CEO of the new organization once the transaction closes. Palmer will chair the combined board, which will later review long-term leadership needs and consider growth into markets like New York and New Jersey.

KSS traces its roots to the 2010 launch of Kiva Confections and now it offers full-state coverage plus logistics and remittance services. Petalfast serves emerging and established brands across California and Arizona. Campfire Advisors acted as financial adviser to the deal, with legal support from Eudaimonia Law PC and Kurichety Law PC.

California’s regulated Cannabis retail sales dipped below $4 billion in 2025 after several years of price compression and steady volume growth. In that setting, larger distribution networks can reduce costs and give brands steadier shelf access while unlicensed supply still accounts for a significant share of consumption. The timing of this combination follows Petalfast’s December 2025 entry into full California distribution through an earlier asset deal.

Zooming out, the arrangement reflects a practical response to margin pressures and the need for reliable wholesale channels. Brands and retailers will watch how the two sales forces integrate, how the new tiered services perform and whether the digital platform delivers measurable gains in ordering speed and visibility. If executed well, the combined operation could set a clearer standard for professional distribution in California’s largest and most competitive market.