Kush could be First US Company in Cannabis Industry with Annual Revenue Over $50M
California-based KushCo Holdings, known primarily as a cannabis packaging company, may become the first U.S.-based publicly-traded cannabis-related company to bring in over $50 million in annual revenue. Other high revenue U.S. cannabis companies include Charlotte’s Web Holdings and Green Thumb Industries.
KushCo Holdings (OTCQB:KSHB), the parent of Kush Bottles, Kush Energy, the Hybrid Creative, and Koleto Packaging Solutions, expects $51 million for the year ended August 31st, 2018.
Founded in 2010, KushCo has facilities in the five largest U.S. cannabis markets and a sales presence in all major U.S. cannabis markets. It has sold more than 1 billion units and serves more than 5,000 dispensaries, growers, and producers in North America, South America, and Europe.
Kush revenue grew 171% over the previous year, following efforts to expand of its product portfolio and create of a more efficient distribution platform. These efforts included:
– the launch of Kush Energy, a division supplying the cannabis industry with solvents and hydrocarbons;
– the opening of new distribution centers in Worcester, Massachusetts and Las Vegas, Nevada.
– the launch of Kush Supply Canada, in Toronto.
– the launch of Koleto Packaging Solutions, an R&D arm that develops innovative packaging and IP.
– the purchase of Zack Darling Creative Associates and its subsidiary, The Hybrid Creative, marketing companies.
Nick Kovacevich, CEO and Chairman of KushCo, noted, “…our expected fourth quarter revenues of $19 million is a testament to our team completing key acquisitions, and the effectiveness of our sales model.
…We expect the industry will continue to see rapid growth and a race to achieve scale…” added Mr. Kovacevich. “…Heading into 2019 we are… just getting started.”
Kush did take a $1.8 million inventory adjustment charge resulting from opening new distribution centers and its lack of a global warehouse management system. They plan to address this with software solutions in early 2019.
Source Kush press release
Kush could be First US Company in Cannabis Industry with Annual Revenue Over $50M
