Shares of KushCo Holdings Inc (OTCMKTS:KSHB) continue to look promising as the company spices up its market image. The numbers and market positioning appear to line up well, as we have been noting over the past year. To further drive the story, the company just announced that it has entered into a strategic transaction with Smoke Cartel (OTCMKTS: SMKC) to sell Roll-uh-Bowl, an online distribution platform for retail sales of collapsible and unbreakable medical-grade silicone water pipes.
According to its release, “As stipulated in the agreement, KushCo will transfer ownership of all Roll-uh-Bowl assets, including inventory, branding materials, the website and social media, in exchange for shares of Smoke Cartel valued at $1,500,000 plus the value of inventory. KushCo will also build a referral landing page into the Kush Bottles website to direct customers to Smoke Cartel when searching for wholesale glass & smoking accessories.”
KushCo Holdings Inc (OTCMKTS:KSHB) is the parent company to a diverse group of business units that are transformative leaders in the cannabis, CBD and other related industries. KushCo Holdings’ subsidiaries and brands provide exceptional customer service, product quality, compliancy knowledge and a local presence in serving its diverse customer base.
KushCo Holdings’ brands include Kush Bottles, a dynamic sales platform that is the nation’s largest and most respected distributor of packaging, supplies, and accessories, Kush Energy, which provides ultra-pure hydrocarbon gases and solvents to the cannabis and CBD sector, Hybrid Creative, a premier creative design agency for cannabis and non-cannabis ventures, and Koleto Packaging Solutions, the research and development arm driving intellectual property development and acquisitions.
Founded in 2010, KushCo Holdings has now sold more than 1 billion units and regularly services more than 5,000 legally operated medical and adult-use dispensaries, growers, and producers across North America, South America, and Europe. KushCo Holdings subsidiaries maintain facilities in the five largest U.S. cannabis markets as well as having a local sales presence in every major U.S. cannabis market.
According to its materials, “KushCo Holdings, strives to be the industry leader for responsible and compliant products and services in the legal cannabis and CBD industry. The Company has been featured in media nationwide, including CNBC, Los Angeles Times, TheStreet.com, Entrepreneur, and business magazine Inc. While KushCo Holdings services all facets of the cannabis and CBD industries, it has no direct involvement with the cannabis plant or any products that contain THC or CBD.”
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As discussed above, the company just entered into a strategic transaction with SMKC to sell Roll-uh-Bowl, an online distribution platform for retail sales of collapsible and unbreakable medical-grade silicone water pipes. In all, traders will note 7% during the past month in terms of shareholder gains in the stock.
What’s more, the stock has benefitted from a jump in recent trading volume to the tune of 11% over the long run average.
“This transaction exemplifies our dedication to continuing the development of our core competencies, ensuring focus is maintained on providing leading packaging, supplies, wholesale vaporizer hardware, gas and solvents for the medical and adult-use cannabis industry,” said CEO Nick Kovacevich. “This is a win for both companies. By selling off the Roll Uh Bowl assets, KushCo will be able to continue to remain highly focused on our core business units driving our growth globally in areas across packaging, vape hardware, gas and branding services to multi-state cannabis operators. Conversely, Smoke Cartel’s team are experts and professionals when it comes to the retail side of products and Roll-uh-Bowl, will fit into their offerings as a strong complement.”
Mr. Kovacevich continued, “Smoke Cartel will continue to build upon the successful Roll-uh-Bowl brand and will remain our preferred partner for customers looking for products such as glass pipes, bongs and grinders.”
Earning a current market cap value of $453.96M, 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.