Kush Bottles Archives

Debra BorchardtSeptember 18, 2018

KushCo Holdings, Inc. (KSHB) formerly known as Kush Bottles said that it is expecting to report a 171% increase in annual revenue to over $51 million for the fiscal year ended August 31^st, 2018. The stock popped over 8% to lately trade at $5.23 on the news.

“Our fiscal year 2018 revenue serves as a historic milestone, not just for KushCo Holdings, but for the entire cannabis industry,” said Nick Kovacevich, CEO, and Chairman of KushCo Holdings. “We believe that no U.S. based public cannabis-related company has ever before generated this level of annual sales revenue. Building on the Company’s year to date momentum, our expected fourth quarter achievement of approximate revenues in excess of $19 million is a testament to the highly innovative and strategic work by our team, completing and integrating key acquisitions, and the effectiveness of our sales model in meeting the evolving needs of the market. We are witnessing just how our scale allows us to leverage synergies which benefit both us and our great customers.”

The news wasn’t all good. KushCo gave the market a heads up on a balance sheet hit. The company said that it expects to take a $1.8 million inventory adjustment charge resulting largely from opening multiple new distribution centers and its lack of a global warehouse management system. KushCo said that the situation would be addressed with software solutions being evaluated for implementation in the first half of the 2019 fiscal year.

The company experienced significant growth and blamed the problems on “growing pains.” KushCo opened several new distribution centers including Worcester, Massachusetts and Las Vegas, Nevada.

It has been an incredibly busy year for the cannabis packaging pioneer. The company acquired Zack Darling Creative Associates and its wholly-owned subsidiary, The Hybrid Creative, in order to offer brand strategy, creative design and marketing, web application development, and e-commerce solutions to cannabis and non-cannabis clients. It also launched Kush Energy, a new division focused on supplying the cannabis industry with tested, ultra-high purity solvents and hydrocarbons and went global by launching Kush Supply Co. Canada headquartered in Toronto.

In addition to all of those efforts, the company also started Koleto Packaging Solutions, the research, and development arm focused on developing innovative packaging products and creating Intellectual Property.

StaffAugust 8, 2018

It’s time for your Daily Hit of cannabis financial news for August 8, 2018:

On The Site

Insys Therapeutics Inc.

Insys Therapeutics Inc. (INSY) delivered its earnings today after the market close and following an earlier announcement that it had settled with the Department of Justice. Insys said that it had agreed to pay $150 million over five years and “with the potential for contingency-based payments associated with certain events that, if they were to occur, management estimates would require additional payments ranging from $0 to $75 million.”

With regards to the company’s second-quarter earnings, Insys delivered gross revenue of $38 million versus last year’s $58.2 million for the same time period. Net revenue was $23.5 million, which missed analyst estimates by $2.4 million and fell dramatically from last year’s $42.5 million. The drop was blamed on lower gross revenue and returns of expired product.

Cannabis Lawsuit

There’s something rotten, it seems, in the state of CBD Naturals and its CBD-related claims. When Jared Berry’s brand CBD Naturals was recently selected as the exclusive distributor of a premier hops/humulus CBD isolate in the United States, he may or may not have expected that he would soon be served with a lawsuit.

The lawsuit comes off the heels of a contentious debate about the origin and trademark rights to extracting CBD from hops (the process trademarked humulus kriya), for which credit is to go to Peak Health Center. The process proves to be promising for CBD medicine as it as a derivative of a legal substance, promising consumers access to CBD in states that have laws against hemp or cannabis CBD.

Isodiol International Inc.

Isodiol International Inc. (ISOLD), a manufacturer of pharmaceutical grade CBD and CBD-based products, announced that its subsidiary, Iso-Sport, has entered into an agreement with ALTIS LLC. Based out of Arizona, ALTIS is a company dedicated to promoting Track & Field through multi-disciplinary uniﬁcation of the sport and provides elite athletes a variety of services such as coaching, integrated support services, and education.

In Other News

General Cannabis Corp.

General Cannabis Corp (CANN) announced financial results for the quarter ended June 30, 2018. The company delivered a net of $3.6 million for the quarter a 130% drop from the previous year’s loss of $1.5 million for the same time period. The loss per share was ($0.10) versus last year’s loss of ($0.08). Revenues jumped to $1.1 million from last year’s $833,000.

SinglePoint Inc.

SinglePoint Inc. (SING) reported revenues of over $188,000 for the first quarter of 2018, which represents a significant increase as compared to the first quarter of 2017. This revenue increase has been generated by successful acquisitions continuing to grow and operate, including DIGS and JAG. Acquisitions have been a key factor in starting to build a solid financial base.

Sugarmade, Inc.

Sugarmade, Inc. (SGMD), one of the largest publicly traded cannabis-related hydroponics supply companies returns to the OTCQB Venture Market trading venue as a fully reporting company with the U.S. Securities & Exchange Commission. Additionally, the Company makes comments relative to the strong revenue growth it is experiencing within the cannabis supplies marketplace.

Kush Bottles, Inc.

Kush Bottles, Inc. (KSHB) acquired Summit Innovations in May of 2018, and now, with the launch of Kush Energy, has successfully completed a full integration. Kush Energy will focus on servicing the rapidly growing concentrates category, which in many primary cannabis markets now account for nearly half of all sales. Kush Energy will operate eight hazmat compliant distribution facilities across the country, including a new location in Humboldt County in Northern California. Kush Energy’s core products are high purity butane, propane, iso-butane, ethanol, dry-ice and blends. The new division will also work closely with cannabis manufacturers and extraction facilities to ensure cleanliness, product quality, reliable supply, safety, and compliance during the extraction process.

Bespoke Extracts Inc.

Bespoke Extracts, Inc. (BSPK) has named JOH as the exclusive broker of Bespoke CBD products in the Northeastern Region of the United States. Founded in 1956, JOH (www.johare.com) is a national food broker recognized as one of the strongest brokers in the country with 17 offices and strategic partnerships across the U.S. JOH will market Bespoke Extracts’ line of high quality, hemp-derived CBD products direct to retailers through its Specialty Natural channel.

William SumnerJune 8, 2018

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.

Cynthia SalarizadehJune 6, 2018

Innovative Packaging for Modern Medicine

Santa Ana, CA, June 6, 2018 / AxisWire/ Kush Bottles, Inc. (OTCQB: KSHB) (“Kush Bottles” or the “Company”), a leading provider of packaging, supplies, vaporizers, hydrocarbon gases, solvents, accessories and branding solutions for the regulated cannabis industry, today announced that it has launched a new division, Koleto Packaging Solutions, that will bring new, FDA-compliant packaging solutions to the pharmaceutical and veterinary industries.

The global pharmaceutical packaging market is expected to reach USD 158.8 billion by 2025. Kush Bottles plans to utilize its expertise from its industry-leading cannabis-focused packaging business to supply packaging solutions to these two new markets. The new division will be run by Edd Pratt, Executive Vice President, and is expected serve pharmaceutical companies and veterinary clinics across the United States.

Kush Bottles’ CEO Nick Kovacevich commented, “As a leading provider of packaging solutions to the cannabis industry, we have an unrivaled track record of creating products that are elegant, while remaining compliant with all of the various state and local regulations. This expertise makes us uniquely suited for scaling our institutional knowledge into other heavily-regulated industries. Virtually all of our products are related to other industries and we see important applications for our child-resistant containers that adhere to stringent FDA regulations, which we believe makes these products relevant to pharmaceutical and veterinary clients. Additionally, our expertise in incorporating customizable branding into our packaging solutions will help clients in these industries achieve a one-of-a-kind look and feel for their products. We believe that entering these new market verticals will allow us to leverage our existing knowledge and infrastructure to significantly expand this underserved market from a packaging innovation perspective.”

With tens of billions of dollars poured into pharmaceutical research, and new products coming to market every day, it can be challenging for companies to keep up with effective and appropriate packaging. Kush Bottles believes that to date, there has been little creative and innovative packaging solutions available for those products. Far from a one-size-fits all mentality, Koleto Packaging Solutions will be able to provide child-resistant packaging and state-of-the-art solutions for nearly any product or device.

“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,” continued Mr. Kovacevich. “Our priority is finding packaging solutions that ensure the quality and safety of all pharmaceuticals while addressing the problem of stale innovation.”

To be added to the distribution list, please email ir@kushbottles.com with “Kush” in the subject line.

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About Kush Bottles

Kush Bottles, Inc. (OTCQB: KSHB) is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry including CBD manufacturers. 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.

Kush Bottles aims to be the gold standard for responsible and compliant products and services in the cannabis industry. Kush Bottles has no direct involvement with the cannabis plant or any products that contain THC or CBD.

The Company has been featured in media nationwide, including CNBC, Los Angeles Times, TheStreet.com, Entrepreneur, and business magazine Inc.

For more information, visit www.kushbottles.com or call (888)-920-5874.

Forward-Looking Statements

This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent the Company’s current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the opinions of the Company’s management only as of the date of this release. Please keep in mind that the Company is not obligating itself to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as: “potential,” “expect,” “look forward,” “believe,” “dedicated,” “building,” or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward-looking statements made by the Company herein are often discussed in filings the Company makes with the United States Securities and Exchange Commission (SEC), available at: www.sec.gov, and on the Company’s website, at: www.kushbottles.com.

Kush Bottles Contacts

Media Contact:
Anne Donohoe / Nick Opich
KCSA Strategic Communications
212-896-1265 / 212-896-1206
adonohoe@kcsa.com / nopich@kcsa.com

Investor Contact:
Phil Carlson / Elizabeth Barker
KCSA Strategic Communications
212-896-1233 / 212-896-1203
ir@kushbottles.com

StaffMay 31, 2018

Santa Ana, CA, May 31, 2018 /AxisWire/ Kush Bottles, Inc. (OTCQB: KSHB) (“Kush Bottles” or the “Company”), a leading provider of packaging, supplies, vaporizers, hydrocarbon gases, solvents, accessories and branding solutions for the regulated cannabis industry, today announced it has signed a lease for a new warehouse facility in Las Vegas to meet demand from the consumer market as well as support the current and new businesses entering the industry or expanding operations.

With the 13,000 square foot facility, expected to be operational mid-June, Kush Bottles expects to minimize the time taken to receive and distribute packaging and supplies, streamline its logistics and access more storage space for high-demand products with rapid turnover times, such as exit bags, cartridges, and pre-roll tubes. By opening its first local distribution facility in Las Vegas, the Company aims to become a stronger partner to some of the most advanced cannabis cultivation and retail facilities in the industry, which are located in Nevada. This warehouse will complement the existing Kush Bottles hazmat facility used today to service the Las Vegas and greater Nevada market with a variety of hydrocarbons, in which businesses use to turn cannabis plants into oils.

“The new Las Vegas facility will further solidify Kush Bottles’ commitment to the city’s thriving, local cannabis community and strengthen our own mission to be the go-to partner for cannabis companies as they scale their operations,” said Kush Bottles CEO Nick Kovacevich. “The fluctuating demand from the tourism and organic growth in the cannabis market means that a lot of our partners are having a difficult time forecasting their packaging and supply needs. By having a local facility, we give our clients the added flexibility of faster delivery as well as offering on-site pick up if that’s what their business dictates.”

As one of the busiest tourist destinations in the country, people from all over the world are being exposed to cannabis, sometimes for the very first time, through Las Vegas dispensaries. With consumer demand at an all-time high in Las Vegas, retailers in the state have already sold nearly $200 million in cannabis in the first six months after the legalization of its adult-use cannabis sales, fueled by both tourists and locals. ¹

To be added to the distribution list, please email ir@kushbottles.com with “Kush” in the subject line.

References

¹ “McVey, E.” Tourism drives hot start to recreational marijuana sales in Nevada, but where’s the ceiling?” Marijuana Business Daily. Retrieved May 29th, 2018 from https://mjbizdaily.com/chart-tourism-drives-hot-start-recreational-marijuana-sales-nevada-wheres-ceiling/

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About Kush Bottles

Kush Bottles, Inc. (OTCQB: KSHB) is a dynamic sales platform that provides unique products and services for both businesses and consumers in the cannabis industry. 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.

The Company has been featured in media nationwide, including CNBC, Los Angeles Times, TheStreet.com, Entrepreneur, and business magazine Inc.

For more information, visit www.kushbottles.com or call (888)-920-5874.

Forward-Looking Statements

Kush Bottles Contacts

Media Contact:
Anne Donohoe / Nick Opich
KCSA Strategic Communications
212-896-1265 / 212-896-1206
adonohoe@kcsa.com / nopich@kcsa.com

Investor Contact:
Phil Carlson / Elizabeth Barker
KCSA Strategic Communications
212-896-1233 / 212-896-1203
ir@kushbottles.com

William SumnerApril 26, 2018

This is your Daily Hit of cannabis news for April 26, 2018:

On The Site

AltMed

Canadian-based CannaRoyalty Corp. (CNNRF) announced that one of its investee companies, Alternative Medical Enterprises, LLC often called AltMed closed a private placement financing of $35.4 million. In a company statement, CannaRoyalty said it made a $1.5 million equity investment in AltMed in 2015 and that the post-money valuation of this current financing represents a growth in value of approximately 215% for CannaRoyalty shareholders.

In Other News

Solis Tek Inc.

Solis Tek Inc. (SLTK), a Nevada-based cannabis manufacturer and distributor, announced that it has executed a letter of intent to acquire an unnamed Arizona company which will provide turn-key services for the management, administration and operation of a licensed medical marijuana cultivation and processing facility in Arizona. In preparation for the agreement, Solis Tek has entered into a long-term lease agreement in Arizona for the use of a 70,000 square foot facility, which will be developed into an advanced cannabis cultivation and processing facility.

Isodiol International Inc.

Isodiol International Inc., a company dedicated to the development and commericialization of CBD-based pharmaceuticals and wellness products, announced that its wholly owned subsidary, BSPG Laboratories LTD., has received approval from the United Kingdom’s Medicines and Healthcare Products Regulatory Agency (MHRA) for the manufacturing of CBD under certificate number:UK API 48727. This approval will allow Isodiol to export CBD to almost any country in the world. “This is a huge achievement by BSPG laboratories and reflects the significant work and efforts made by the staff and management. The API registration also clearly demonstrates the commitment of BSPG Laboratories and Isodiol to manufacture the highest quality CBD currently available worldwide,” commented Dean Billington, QP Consultant of BSPG Laboratories LTD.

Kush Bottles Inc.

Kush Bottles Inc., a provider of packaging solutions and other cannabis accessories, announced that is has appointed Rodrigo de Oliveira as Vice President of Operations and Jason Vegotsky as Vice President of Sales. Additionally, the company announced that it has promoted Edd Pratt to Executive Vice President, where he will be responsible for overseeing domestic and international distribution efforts. “Building out a world-class sales organization is a top priority for us at Kush…This is a big step forward for our organization, and we’ll see this structure take hold immediately as well as folding into our the long-term growth plans,” stated Kush Bottles CEO Nick Kovacevich.

William SumnerApril 12, 2018

On April 11, 2018, Kush Bottles, Inc. (KSHB) released its financial results for the second quarter of 2018, which ended on Feb. 28, 2018.

Revenue for the quarter was $10.36 million, up 249% compared to the previous year. Gross margins were 28.1%, down from 35.6% in the same period last year. The lower gross margins were attributed to increased business in vaporizer and cartridge products, which are lower margin products.

Still, the company reported a net loss for the quarter of approximately $920,000, compared to the previous year’s net income of $3,619. The losses could be attributed to the jump in operating expenses which ballooned from $1 million for the second quarter of 2017 to $3.7 million for the same time period in 2018. The gross profit of $2.9 million in 2018 was better than last year’s $1 million for the same time period an increase of 270%, but not enough to overcome the costs.

The company’s cash balance was $7.1. million, up from the previous year’s total of $0.9 million. The increase in cash on hand was due to a $6 million equity investment by the company’s strategic partner, Merida Capital Partners. As of reporting, the company has $15.3 million in working capital, compared to the $3.4 million that the company had as of August 31, 2017.

In the second quarter, the company hired Kyle Heverly as its Regional Sales Director and tasked him with expanding the company’s physical presence on the East Coast. Donald H. Hunter, who formerly served as Senior Executive of Harbor Global Company Limited and The Pioneer Group, Inc., was appointed to the Board of Directors. In addition to continuing to serve as Chief Financial Officer, Jim McCormick was also appointed as the company’s Chief Operating Officer.

“We have made significant headway expanding our offering to encompass a comprehensive portfolio of solutions that power the cannabis industry and position Kush Bottles as a critical link in the cannabis supply chain,” commented Kush Bottles CEO Nick Kovacevich. “By staying on top of industry trends and developments and proactively building a dynamic and flexible business, we have increased the number of customers, average order size, and order volume in all our markets.This strategy has also broadened our client base and provided improved revenue stability to the Company. ”

Stock Performance

Kush Bottles stock is currently trading at $5.04 per share, down from its 52-week high of $8.51, but still well above its two-year average. There is one analyst covering the stock with a price target of $9.50.

William SumnerMarch 6, 2018

mCig

mCig Inc. (MCIG) announced today that its subsidiary, NYAcres Inc. will conduct a joint venture with FarmOn! Foundation, which was just granted permission to participate in an Industrial Hemp Agricultural Research Pilot program through the New York State Department of Agriculture & Markets. The company expects that first harvests, which will be grown on an initial 40-acre plot, will yield approximately 1,000 to 1,500 plants per-acre and should generate approximately $4 million in revenue. “Our Joint Venture with FarmOn! Foundation, puts MCIG in the CBD business in a big way and opens the door for growing, researching, developing premium hemp and CBD oil,” said mCig CEO, Paul Rosenberg, in a statement.

MedReleaf

MedReleaf (LEAF) today entered into an exclusive licensing agreement with Woodstock Cannabis Company, allowing the company to utilize the famous Woodstock brand in the Canadian market. Per the agreement, the company will grow and sell cannabis strains under the Woodstock Brand. The agreement comes just in time for the 50^th anniversary of the iconic Woodstock festival, which is set to take place on August 15, 2019. “Woodstock is known as one of the most significant cultural and societal events of the 20th Century…We’re thrilled to partner with Woodstock on this exciting initiative” said Darren Karasiuk, VP Strategy at MedReleaf, in a statement.

Organigram

Organigram Holdings (OGRMF) announced today that it has received approval from Health Canada for the remaining 13 grow rooms for the company’s planned Phase 2 expansion of its cannabis production facility; bringing the total number of grow rooms to 23. Harvests for the Phase 2 expansion are expected to take place in the third week of April.

Kush Bottles

KushBottles (KSHB) announced today that the company has been chosen as the exclusive distribution partner for FunkSac, LLC’s line of FunkGuard products. Under the agreement, Kush Bottles will distribute FunkGuard products across KushBottles’ national platform as well as to existing FunkSac customers. “We are pleased to be selected as FunkSac’s exclusive distribution partner and look forward to offering our customer base with an even greater range of brandable packaging and compliance solutions,” said Kush Bottles Chairman and CEO, Nicholas Kovacevich, in a statement.

CV Sciences

CV Sciences (CVSI) announced that it has paid its February and March 2018 installment obligations, as defined under its March 1, 2017, Convertible Promissory Note. Under the agreement, the company must pay the original principal of $770,000 in cash or converted shares. By paying their monthly installments in cash, the company was able to avoid stock dilution. The remaining balance of the company’s debt is $322,400.

Debra BorchardtJanuary 16, 2018

Cannabis packaging company Kush Bottles, Inc. (KSHB) reported rising revenue and net income for its first fiscal quarter of 2018, for the period ending November 30, 2017. Revenue rose 258% to $8.85 million over last year’s $2.4 million and net income was $94,615 versus last year’s net loss of $161,000. Gross margins fell from 34% to 30% as business increased in the lower margin vaporizer category.

“We entered fiscal 2018 with excellent momentum as we saw the impact of the strategic initiatives implemented throughout 2017 start to take hold,” said Nick Kovacevich CEO of Kush Bottles. “This strength in the business led to net profits of $94,615 in fiscal Q1 2018. We also saw our cash balance increase to $5.5 million, which we plan to invest towards inventory purchasing, development of proprietary products, and other strategic initiatives.”

The company’s gross profits rose to $2.6 million in the quarter over last year’s $834,643. Total operating expenses also increased to $2.5 million over last year’s $971,624.

Kovacevich added, “During the first fiscal quarter of 2018, we saw the release of California’s new temporary regulations for medical and adult-use cannabis sales, which took effect on January 1, 2018. California is not only the U.S.’s largest cannabis market but also our home market where we have already extensively invested in sales, marketing, and infrastructure. We consider the legalization of adult-use cannabis sales to be a major opportunity to scale the business throughout 2018 and beyond, and we have made significant headway to establish the Company as a leader in this market. Many of our clients have been granted temporary licenses and we are working with them closely during this hectic transition period as California finalizes its permanent regulations over the next 6 to 12 months.”

Last week, the company announced management changes. Ben Wu, who has served as Chief Operating Officer since 2014 was stepping down and Jim McCormick will assume the role of Chief Operating Officer in addition to continuing to serve in his current capacity as Chief Financial Officer.

The company will host a conference call after the market closes on Tuesday. The stock was lately trading at $6.70 for a year high, quite a nice move over the 52-week low of $1.61.

Debra BorchardtNovember 28, 2017

California-based Kush Bottles, Inc. (KSHB), reported its financial results for its fiscal year ended August 31, 2017 with revenues climbing 129% year over year to $18.8 million. Net income came in at $69,000 down from 2016’s $72,000. Gross profits were $6.2 million, a nice jump over last year’s $2.6 million.

“Fiscal year 2017 was a pivotal year for the Company as we began a new and exciting chapter,” commented Nick Kovacevich, Chairman and Chief Executive Officer of Kush Bottles. “We implemented a series of growth initiatives intended to expand our product portfolio, strengthen our supply chain, increase our sales force and position Kush Bottles as the leading provider of ancillary products and solutions to the rapidly growing cannabis market. As a result of these initiatives, our sales growth steadily gained momentum throughout the year, resulting in record revenues of $18.8 million in fiscal year 2017, representing an increase of 129% compared with fiscal year 2016.”

Kovacevich noted that the company’s strong fourth quarter results were driven by the company’s acquisition of CMP Wellness that occurred in May of 2017. This enabled the company to take advantage of the explosive vape market.

“The acquisition brings significant revenue and growth opportunities in the vapor category, as well as synergies which expand our ability to grow the core packaging, supplies, and services business. This acquisition was the latest of several initiatives implemented throughout the year to diversify our product offerings to capture additional market share in the cannabis sector,” said Kovacevich. “We have made great strides to gain market share in new emerging cannabis markets such as Nevada and California, areas we expect to remain a large focus in fiscal year 2018.”

New Loan

The company also stated in its annual report that on November 16, 2017, Kush Bottles and Kush International Corporation (KIM) as borrowers, and all of its other subsidiaries, as credit parties, entered into a Loan and Security Agreementwith Gerber Finance Inc., as the lender, effective as of November 6, 2017. The loan provides a secured revolving credit facility with an aggregate principal amount of up to $2.0 million at any time outstanding, of which $1,500,000 was drawn as of November 24, 2017. The proceeds of the loans under the Loan Agreement will be used for working capital and general corporate purposes. The revolving line has a maturity date of November 6, 2019.

Kush Bottles, Inc. markets and sells packaging products and solutions to customers operating in the regulated medical and recreational cannabis industries. Kovecevich told Green Market Report during the MJ Biz conference recently that California was a huge catalyst as the state embarks on new regulations that include new requirements for packaging.

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