Have We Seen the Bottom in KushCo Holdings Inc (OTCMKTS:KSHB)?

Have We Seen the Bottom in KushCo Holdings Inc (OTCMKTS:KSHB)?

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The process of trying to rebuild KushCo Holdings Inc (OTCMKTS:KSHB) continues to make some sort of progress in recent action, with last week’s close coming on 3 straight days of upside movement. In addition, the company just announced that it has named Sentia Wellness, a new hemp-derived CBD company with manufacturing and distribution capabilities, as its first brand partner for its new Retail Services division focused on CBD mass distribution, industry education, and compliance.

According to the release, “Sentia will utilize KushCo’s partnership with C.A. Fortune, a leading full-service national consumer products sales and marketing agency focused on lifestyle brand partnerships, to activate its Social CBD brand across a variety of retail channels. The partnership commenced on October 1, 2019 and enables Sentia to leverage KushCo’s enhanced distribution capabilities across the U.S. with many of the largest conventional retailers.”

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 just announced that it has named Sentia Wellness, a new hemp-derived CBD company with manufacturing and distribution capabilities, as its first brand partner for its new Retail Services division focused on CBD mass distribution, industry education, and compliance.

Recent action has seen 27% piled on for shareholders of the company during the trailing week. Furthermore, the stock has witnessed a pop in interest, as transaction volume levels have recently pushed 58% above the average volume levels in play in this stock over the longer term.

“After having successfully built and delivered a platform of proprietary and value-added products to our highly entrenched customer base, we are excited to begin delivering to customers our higher-value services, with Sentia as the first CBD brand partner under our new Retail Services division,” said Jason Vegotsky, KushCo’s Chief Revenue Officer and President. “Sentia represents an ideal candidate to tap into the KushCo ecosystem and leverage our mass distribution channels and deep industry knowledge to establish a stronger foothold in the rapidly growing CBD market. They appreciate the need to partner with an industry leader like KushCo that has developed a keen understanding of the regulatory and compliance challenges impacting the CBD industry, along with having a robust distribution network to scale nationwide and turn Social CBD into a household name. This partnership represents the first of many, and we are thrilled to leverage our relationship with C.A. Fortune to drive even higher value for our customers, enhance our margins, and strengthen our competitive moat.”

Now commanding a market cap of $183M, KSHB has a significant war chest ($12.2M) of cash on the books, which compares with about $29.8M 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 $121.9M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 221.5%. As more color becomes clear on the name, we will review the situation and update our take. 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.

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