What’s Next for KushCo Holdings Inc (OTCMKTS:KSHB)

What’s Next for KushCo Holdings Inc (OTCMKTS:KSHB)


KushCo Holdings Inc (OTCMKTS:KSHB) just announced the addition of four new compliant, hemp-derived CBD brands under its Retail Services partnership with C.A. Fortune, a leading full-service national consumer products sales and marketing agency focused on lifestyle brand partnerships.

According to the release, the four new hemp-derived CBD brands include HeavenlyRx, a global hemp and CBD company that holds controlling ownership interests in various industry-leading assets in the hemp/CBD and THC-free cannabinoid wellness space, with a focus on hemp cultivation, processing and the manufacturing of a diverse range of traditional CBD products including oils, tinctures, balms, and vape-ready products; B GREAT, an emerging CBD brand that produces superior quality and full-spectrum hemp-based products, including topicals, tinctures, capsules, and hemp shots; Maye, an upcoming line of CBD products by Grassroots, the largest private vertically-integrated multi-state operator with a vast presence in legal cannabis and CBD markets, particularly across the Midwest and Northeast; and Level Select, a breakthrough line of sports creams and sports roll-ons with a proprietary blend of broad spectrum and nano CBD for quick absorption.

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 the addition of four new compliant, hemp-derived CBD brands under its Retail Services partnership with C.A. Fortune, a leading full-service national consumer products sales and marketing agency focused on lifestyle brand partnerships.

Traders will note flat action during the past month in the listing. In addition, the company has seen a growing influx of trading interest, with the stock’s recent average trading volume running 20% over what the stock has registered over the longer term.

“For the past several months, we have been hard at work helping our CBD brands capture significant share in the rapidly growing, multi-billion-dollar CBD industry by onboarding them onto some of the largest national conventional retail chains,” said Jason Vegotsky, KushCo’s Chief Revenue Officer and President. “Currently, with the FDA still yet to deliver comprehensive guidance regarding the authorized use of CBD in food and beverage products, our market is to a large extent limited to tinctures and topicals. However, even at this early juncture, we have been able to successfully gain retailer authorizations and activate some of our brands across a variety of retail channels. We also have been building a portfolio of food and beverage-oriented CBD brand partners so that when the FDA does give guidance for these brands to include CBD in their products, we can quickly and successfully launch them into the major retailers. Regardless of the specific retail channel, brands trust and rely on us because of our deep understanding of the federal and state regulatory and compliance framework, as well as our robust distribution network to help them scale across the nation. Ultimately, this process will take time, just like any other consumer packaged goods industry, but we’re encouraged to see this division gaining traction and continuing to drive higher value for our customers.”

Earning a current market cap value of $171M, KSHB has a significant war chest ($3.9M) of cash on the books, which is balanced by about $32.6M 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 $149M. In addition, the company is seeing major top-line growth, with y/y quarterly revenues growing at 135.3%. You can bet we will update this one again as new information comes into view. 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.