Kush Bottles Inc (OTCMKTS:KSHB)
Kush Bottles Inc (OTCMKTS:KSHB) traded lower after announcing plans to penetrate Alaska’s legal cannabis market. The stock was down by 3.67% in Tuesday’s trading session to end the day at $2.10 per share. The company is also fresh from posting a 103% year over year increase in revenues.
Alaska Cannabis Sales Opportunities
Kush Bottles Inc (OTCMKTS:KSHB) bills itself as a dynamic sales platform for providing products and services to both businesses and consumers in the cannabis industry. The company currently services to more than 4,000 legally operated medical and adult use dispensaries, growers and producers. In addition to pursuing opportunities in North America, the company is also expanding its footprint in South America and Europe.
Ramping up efforts in the exploding Alaska cannabis market is the company’s latest play with the signing of an exclusive distribution agreement with JKD Brands. Under the terms of the agreement, the company will distribute Kush’s premier products including child resistant containers and bags among other packaging and labeling accessories.
Alaska is one of the top ten visited states in the U.S and presents unique growth opportunities for Kush Bottles Inc (OTCMKTS:KSHB) as it has already commenced legal cannabis sales. The signing of the distribution agreement with JKD seeks to bypass some of the logistical challenges synonymous with the state.
“We chose to partner with JKD Brands because their knowledge of the local Alaska regulatory, logistics, and market conditions is second to none. JKD’s management team brings substantial local and state knowledge, with the support, capabilities, and know-how of an established national partner,” said Nicholas Kovacevich Kush Bottles Inc (OTCMKTS:KSHB) CEO.
Q3 Stellar Performance
The signing of the distribution agreement is also part of an effort that seeks to supplement Kush’s existing sales channels to help build on Q3 sales momentum. During the quarter Kush Bottles Inc (OTCMKTS:KSHB), bottles generated revenues of $4.7 million, representing a 103% year over year increase. Gross margins also increased to 33% from 32%.
The third quarter performance, according to the CEO, underscores the company’s ongoing transition from a cannabis packaging provider to a full-service sales platform. In a bid to strengthen the sales platform portfolio, the company recently completed the acquisition of CMP Wellness, a renowned distributor of vaporizers, cartridges, and accessories.
Kush Bottles Inc. (OTCMKTS:KSHB) is also fresh from acquiring online distribution platform Uh-Bowl.com, which is poised to expand its presence in the business-to-consumer market for the first time.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.