Kush Bottles Inc has been on the rise in recent days since reversing off $4.20 lows. KSHB has been highly volatile over the years starting off at less than $1 in 2016 and trading over $8 plus at the beginning of last year.
Kush Bottles is the parent company of innovative industry leaders such as Kush Supply Co., Kush Energy, The Hybrid Creative, and Koleto Innovations, which provide a range of services and products for a variety of industries including the regulated cannabis and CBD industries The Hybrid Creative, and Koleto Packaging Solutions. Founded in 2010 as a packaging and supplies company for dispensaries and growers, Kush Bottles has sold more than 1 billion 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.
In April Kush entered into a definitive agreement with an institutional investor for a private placement of a senior unsecured note (the ”Note” or the ”Offering”) with an aggregate principal amount of US$21,300,000. The Offering is expected to close on or about April 30, 2019, subject to customary closing conditions. The Note will be an unsecured senior obligation of the Company. The Note will mature on the 18th month anniversary of the closing date, unless earlier redeemed by the Company. The Note is being issued at an original issue discount and will not bear additional interest (subject to the occurrence of certain events of default).
Earlier this year Kush reported financial results for its second fiscal quarter of 2019, for the period ended February 28, 2019. Net revenue increased 240% year-over-year to $35.2 million compared to the same quarter a year ago. Net revenue rose by 39% sequentially over quarterly high of $25.3 million reported during the first fiscal quarter of 2019.
During the quarter the Company entered into a number of long-term supply arrangements-in-principle with regard to three large, well-known new customers; these are expected to provide the Company with an aggregate value of up to $75.0 million of new revenue over the next three years, while providing more supply chain certainty for all parties involved.
On June 11 Kush announced Rodrigo De Oliveira has been named the Chief Operating Officer (COO). Mr. De Oliveira joined the company in April 2018 and had been serving as the Company’s Interim COO since February of 2019. With more than 18 years of experience in global supply chain and operations, Mr. De Oliveira is well-versed in lean manufacturing principles and holds a Six Sigma blackbelt. In addition, the Company announced two key hires to the operations team, Calvin Coy as Vice President of Strategic Procurement, and Fabian Chavez as Vice President of Operations.
“Rodrigo has been instrumental in improving the Company’s operational efficiencies as we execute our path to profitability. With him at the helm we’re in a position to continue scaling our business while launching several new high margin, high value initiatives to support the legal cannabis, CBD and hemp markets. We are pleased to have him on the KushCo executive team, in addition to new team members, Calvin and Fabian, who both bring decades of global supply chain and operations experience,” said Nick Kovacevich, CEO of KushCo.
Currently trading at a $391 million market valuation KSHB has a strong balance sheet with $18 million in the treasury as well as $10 million in inventory and small very manageable debt. The Company is emerging as a revenue powerhouse recently announcing it will report over $60 million for the 6 months ended February 28, 2019 compared to $19mm for the same period last year. Kush has been getting plenty of media attention appearing in media nationwide, including CNBC, Los Angeles Times, TheStreet.com, Entrepreneur, and business magazine Inc.
Christopher Ferraris is a third-year student at Temple University in Philadelphia. Having already completed an Associates Degree in Psychology, Christopher is now finishing his Bachelor’s degree in Finance. In preparation for working in the financial sector, Christopher is writing financial content and analysis. Every day, Christopher works on articles regarding the following topics: finance, cryptocurrency and technology.