KushCo Holdings Stock (OTCQX: KSHB) - Investor Dashboard


➔ KushCo Holdings
OTCQX Ticker: KSHB
Sector: Basic Materials
Industry: Containers & Packaging
Country: U.S.
Employees: 250 as of 08/05/19
Established: 2010
CEO: Nick Kovacevich

Summary

Fiscal Year-End: August
Exchange: OTCQX
Sector: Basic Materials
Auditor: Marcum LLP
Headquarters: Garden Grove, CA
Distribution Warehouses:  8

Financials as of 05/31/19

Cash on hand: $12.2 million
Fixed Investment: $8.8 million
Shareholders’ Equity: $103.5 million
Revenues – Last Quarter: $41.5 million
Gross Margin: 17.8%
EPS: -$0.12

Capital Structure as of 09/26/19

Last Financing: 17.2 million Units at $1.75
Basic Shares: 106.0 million
Warrants: 14.6 million
Options: 12.7 million
Diluted Shares: 133.3 million

Company Brief

KushCo Holdings, Inc. (OTCQX: 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 provide exceptional customer service, product quality, compliance knowledge and a local presence in serving its diverse customer base.

KushCo Holdings’ brands include Kush Supply Co., 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.

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The KushCo Story

Founded in 2010, KushCo has now sold more than 1 billion units and regularly services more than 6,000 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.


Highlights

  • Parent company of Kush Supply Co., Kush Energy, Hybrid Creative, and Koleto Packaging Solutions
  • Product and service offerings including packaging and labeling, energy and natural products, papers and supplies, vaporizer hardware and technology, creative services, and CBD brokerage
  • 6,000-plus business accounts
  • More than a dozen accounts with sales in excess of $500k
  • Multi-state operations and Canadian operations
  • Solutions for growers, processors, extractors, retailers, dispensaries, brand owners, and more
  • First OTC cannabis stock to be covered by top-tier Wall Street firm

Growth Strategy

  • Leverage the growth of legal cannabis through organic and acquisition initiatives
  • Geographic expansion, including expansion ino Canada and a proposed facility in Florida
  • Adding new products and categories while cross-selling
  • M&A – Acquired CMP Wellness in 2017, Summit Innovations and Hybrid Creative in 2018
  • Sole packaging supplier opportunities
  • Strategic partnerships with distributors and media companies
  • 66,000-square-foot Massachusetts distribution warehouse serving as the company’s East Coast hub and 40,000-square-foot Michigan distribution facility serving as the company’s Midwest hub
  • International expansion with an office in China and an affiliate facility in the U.K.
  • Distribution in 28 states and more than 20 legal countries

Differentiators

  • Value-added supplier and trusted partner
  • Regulatory insight helps customers remain compliant
  • 1,800 SKUs across 15 product categories
  • More than 59 articles of intellectual property
  • Strong branding and awareness
  • Physical presence in key states and Canada
  • Digital creative agency The Hybrid Creative
  • Innovation business unit Koleto Packaging Solutions
  • Plans to offer CBD brokerage and equipment financing for customers
  • One of the largest sales forces in the industry

Sales Growth


Distribution

KushCo has five distribution facilities in Washington, California, Oregon, Nevada, and Massachusetts with distribution serving North America, South America, and Europe. A physical presence in key states enables the Company to rapidly meet customer demand and reduce shipping costs. The company also has nine hazmat distribution locations for its gas and solvents.

As new markets open up, KushCo expands their sales force to drive first-mover advantage; getting to prospects before they establish a packaging partner. An early and local presence in new markets creates significant brand value in a grassroots and highly fragmented industry.


Institutional Analyst Coverage

ROMMEL DIONSIO
Compass Point

BOBBY BURLESON
Canaccord Genuity

MIKE HICKEY
Benchmark Company

BRETT HUNDLEY
Seaport

SCOTT FORTUNE
ROTH Capital Partners


Curated Stories & News


Visit KushCo Holdings Inc.
at www.kushco.com.

New Cannabis Ventures in partnership with due diligence platform 420Investor, is the definitive source for fact-based, data-driven, financial information and relevant company news for qualified publicly traded cannabis companies. NCV extracts and parses only the most important content. Information is provided “as is” and solely for informational purposes, not for trading or advice. KushCo Holdings Inc., formerly Kush Bottles, is a client of NCV Media, LLC. Read our full disclaimer.