Kush Bottles Nets $36 Million From Registered Direct Offering

Kush Bottles (KSHB), a company specializing in cannabis packaging solutions, announced that it has entered into a definitive agreement with investors for a registered direct offering priced at $36 million. A.G.P./Alliance Global Partners is the sole placement agent for the offering.

Under the agreement, Kush Bottles will sell to investors 7.5 million shares of common stock, at a price of $0.001 per share, and warrants to purchase up to 3.75 million shares of common stock at an combined offering price of $4.80 per share.

The warrants carry an exercise price of $5.28 per share and are immediately exercisable. The warrants will expire five years from the date of issuance. The company will use the proceeds from the offering to working capital, product development, acquisitions, capital expenditures, and other business opportunities. The offering is expected to close on or about June 12, 2018.

The offering comes several days after the company announced the launch of a new division, Koleto Packaging Solutions, which would focus on developing FDA-compliant packaging solutions to the pharmaceutical and veterinary industries. Leading up the new division will be Edd Pratt, Kush Bottles’ Executive Vice President.

A report by Grand View Research found that the global pharmaceutical packaging market is expected to reach $158.8 billion by the year 2025. With less legal risks and an equally large market, it is easy to see why Kush Bottles would want to branch out into the pharmaceutical packaging. In a statement, Kush Bottles’ CEO Nick Kovacevich said that the company was “uniquely suited” to scaling its know-how into other industries.

“In speaking with many of the key stakeholders, such as the manufacturers and distributors, we see an opportunity to address how packaging in pharmaceutical and veterinary industries are handled, stored and used and aim to create a solution that fits the end-users’ specific needs,” commented Kovacevich. “Our priority is finding packaging solutions that ensure the quality and safety of all pharmaceuticals while addressing the problem of stale innovation.”

Stock Performance

Kush stock was lately trading at $4.99, down from its year high of $8.51, but above its 52-week low of $1.81.

William Sumner

William Sumner is a freelance writer specializing in the legal cannabis industry. You can follow William on Twitter @W_Sumner or on Medium.

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up

About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


Recent Tweets

Back to Top

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.