One interesting recent announcement from KushCo Holdings Inc (OTCMKTS:KSHB) deserves a closer look. Recently, the company announced that it signed an exclusive sales and innovation agreement with ExtractionTek Sales, LLC, dba. ExtractionTek Solutions, a leading provider of closed loop hydrocarbon extraction equipment, based in Colorado. This announcement lays down an important note of potential revenue diversification for the company.
According to the release, “The reciprocal agreement is designed to drive additional client expansion for both companies through their complementary operations. KushCo’s Kush Energy division supplies the cannabis industry with tested, ultra-high purity solvents and hydrocarbons, which are essential in the extraction process for the production of products including oils, edibles and waxes. An outcome of partnering together and cross-training, will be the development for new innovative solutions and offerings to the market, further facilitating how customers are able to scale and grow as a result of working with Kush Energy.”
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, compliance 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 noted above, KSHB recently announced that it has signed an exclusive sales and innovation agreement with ExtractionTek Sales, LLC, dba. ExtractionTek Solutions, a leading provider of closed loop hydrocarbon extraction equipment, based in Colorado.
The chart shows 14% during the past week in terms of shareholder gains in the name. Furthermore, the company has seen interest climb, with an increase in recent trading volume of 24% above its longer-run average levels.
“Our agreement with ETS will allow us to capitalize on the growing demand for closed loop hydrocarbon extraction by businesses that ultimately need solvents and hydrocarbon gases, generating additional opportunities for our aggressive customer expansion,” said Jason Vegotsky, the President of Kush Supply Co. “ETS provides innovative solutions for quality-manufactured, efficient and safe extraction equipment and maintains strong customer relationships in many of the same key domestic markets that we currently operate within, further enhancing the opportunity to cross-sell our customer base.”
Earning a current market cap value of $455.44M, 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 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.