Kush Bottles Inc (OTCMKTS:KSHB) has been back in bounce mode over the past couple weeks after finding key support at the $4/share level. This level marked a Fibonacci 50% pullback from the stock’s momentum highs logged midway through January. That pivot high capped a powerful run wherein the stock added over 110% to its market value over just 10 days. That big push was fueled by a sense of expansion through new relationships for the company – a theme that may be seeing a renaissance in recent days.
To wit: the company just announced it has been selected by FunkSac, LLC to be the exclusive distributor for its line of flagship FunkGuard products. According to the release, “FunkSac which was named by Entrepreneur Magazine as one of “10 Cannabis Startups You Need to Watch,” was funded in part by Snoop Dogg’s Casa Verde Capital. The company is veteran-owned, based in Denver, CO, and provides compliant packaging solutions used in both medical and recreational markets.”
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, “Kush Bottles, Inc. (OTCQB: KSHB) is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry. Founded in 2010 as a packaging and supplies company for dispensaries and growers, Kush Bottles has sold more than 100 million units and now regularly services more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe. The Company has facilities in the three largest U.S. cannabis markets and a local sales presence in every major U.S. cannabis market.”
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As noted above, shares of KSHB have been back on the move higher over the past week or two of action, with the company’s recent announcement of a new distributor relationship helping to fuel gains. And with better than 250% y/y top-line growth in the works, new deals are going to draw eyeballs.
Nicholas Kovacevich, Chairman and CEO of Kush Bottles, said he admires FunkSac’s commitment to quality. “FunkSac’s management shares values that are closely aligned with those of Kush Bottles,” he said. “FunkGuard products are produced in the USA using the highest quality materials, and certified child-resistant from an ISO certified testing facility. We are pleased to be selected as FunkSac’s exclusive distribution partner and look forward to offering our customer base with an even greater range of brandable packaging and compliance solutions.”
The chart shows 12% during the past week in terms of shareholder gains in the listing. This is emblematic of the stock. KSHB has evidenced sudden upward volatility on many prior occasions. Moreover, the listing has witnessed a pop in interest, as transaction volume levels have recently pushed 13% beyond what we have been seeing over the larger time frame.
It pays to take note of this fact given the stock’s very limited trading float of 9.6M shares. One is wise to respect the dynamic this may create — a jump in average daily transaction volume in a stock with a restricted float can unleash fireworks as supply is squeezed.
At this time, carrying a capital value in the market of $335.5M, KSHB has a significant war chest ($5.5M) of cash on the books, which compares with 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%. This is an exciting story, and we look forward to a follow-up chapter as events transpire. 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.