We have generally been fans of the KushCo Holdings Inc (OTCMKTS:KSHB) story. The company has been outperforming pure fundamental expectations around just about every corner. But the market has favored producers, not pick and shovels. That said, the stock has been locked in a bullish trend on a very large time frame, and continues to hold key support during this year’s consolidation. The company just hit the wires with new preliminary topline results that keep the momentum in place.
Nick Kovacevich, CEO and Chairman of KushCo Holdings, noted, “Our fiscal year 2018 revenue serves as a historic milestone, not just for KushCo Holdings, but for the entire cannabis industry. We believe that no U.S. based public cannabis-related company has ever before generated this level of annual sales revenue. Building on the Company’s year to date momentum, our expected fourth quarter achievement of approximate revenues in excess of $19 million is a testament to the highly innovative and strategic work by our team, completing and integrating key acquisitions, and the effectiveness of our sales model in meeting the evolving needs of the market. We are witnessing just how our scale allows us to leverage synergies which benefit both us and our great customers.”
KushCo Holdings 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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In all, we’ve witnessed 23% tacked on to share pricing for the stock in the past month. Furthermore, the name has registered increased average transaction volume recently, with the past month seeing 23% beyond what we have been seeing over the larger time frame.
“Crossing the $51 million revenue mark is another significant indicator that the U.S. cannabis space is now a legitimate industry, producing major revenues, employment, and tax income. As more and more states move towards legalization of medical and adult use cannabis programs, we expect the industry will continue to see rapid growth and a race amongst businesses to achieve the scale needed to serve this major industry,” added Mr. Kovacevich. “While we see our fiscal 2018 achievement as an important milestone for our company, heading into fiscal year 2019 we are going to continue to put our heads down, invest in our platform and focus on gaining market share, growing revenues, and building value for both customers and shareholders. In other words, we are just getting started.”
At this time, carrying a capital value in the market of $396M KSHB has a significant war chest ($3.6M) of cash on the books, which stands against about $10.9M 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 $40.8M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 173.4%. We will update the story again soon as developments 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.