Kush Bottles Inc (OTCMKTS:KSHB) busted through technical support earlier this month as the company issued new stock options to a new beneficiary following a massive run higher in share prices. KSHB is now nearing a possible test of key technical support at its 50-day simple moving average around the $4.65-4.70/share area as we head into a new week of action.
The action in this stock has been red-hot over the past 3-4 months, and now, as we see the first real pullback in that time, investors are likely looking for the next catalyst to take shares higher. In that vein, the company just announced it was selected by Future Farm Technologies Inc. (CSE: FFT) (OTCQB: FFRMF) to develop a suite of customized packaging and comprehensive compliance solutions to support its expansion into new territories.
Kush Bottles Inc (OTCMKTS:KSHB) provides packaging products and solutions to producers, processors, and retailers operating in the regulated medical and recreational cannabis industry.
KSHB sells primarily into the b2b market, which includes legally operating medical and adult-use dispensaries, growers, and MIP producers (Marijuana Infused Products) in states with marijuana programs.
It offers pop top bottles; child resistant exit, paper exit, and foil barrier bags; tubes; and polystyrene, polypropylene, or silicone containers to urban farmers, greenhouse growers, and medical and recreational cannabis dispensaries.
According to the company’s press messaging, “Founded in 2010, Kush Bottles has sold more than 100 million bottles and regularly services thousands of customers across the United States and Canada. The company primarily services the B2B market, which includes legally operated medical and adult-use dispensaries, growers and marijuana-infused product manufacturers. Kush Bottles aims to be the gold standard for responsible branding and packaging in the cannabis industry.”
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“As we move forward with our plans to develop a diversified portfolio of cannabis investments in several states, it is important that we stay on the right side of state laws at all times, while also building strong brands as we penetrate these markets for the first time,” comments Mr. William Gildea, CEO and Chairman of Future Farms. “Kush Bottles offers a comprehensive suite of high-quality cannabis packaging, branding, and compliance solutions all under one roof, and has a strong track record of working with fast-growing cannabis companies, making them the right partner for us as we implement our strategy to scale the business.”
“We are very excited to work with an innovative company like Future Farm Technologies,” Mr. Nick Kovacevich, CEO of Kush Bottles, comments. “Our business strategy is to participate in the growth of the emerging legal cannabis sector by partnering with leading players at every stage in the cannabis supply chain – from seed to sale. Our in-depth knowledge of local laws in every U.S. state makes us well-positioned to work with companies such as Future Farms that are looking to grow their business in more than one jurisdiction. We are excited by this opportunity to help the company grow its brands while staying compliant with state laws and regulations as it enters this exciting stage in its growth.”
Recent action has seen 5% added to share values of the listing over the past week of action. The situation may be worth watching. KSHB has a history of dramatic rallies. What’s more, the name has seen a growing influx of trading interest, with the stock’s recent average trading volume running topping 270% beyond what we have been seeing over the larger time frame
Currently trading at a market capitalization of $339.8M, KSHB has a significant war chest ($5.5M) of cash on the books, which is balanced by about $1.9M in total current liabilities. One should also note that debt has been growing over recent quarters. KSHB is pulling in trailing 12-month revenues of $25.2M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 257.9%. We will update the story again soon as further details emerge. Sign-up for continuing coverage on shares of $KSHB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $KSHB, either long or short, and we have not been compensated for this article.