Kush Bottles Inc (OTCMKTS:KSHB) moved up another +26.72% Tuesday as solid financial reports continue to sink in. KSHB put together a strong 2017 and investors are bringing serious volume to this cannabis industry operator. KSHB is seeing volume surpass the million mark again today.

KSHB released their financial report for its fiscal year closed August of last year. Revenue surged 129% YoY to $18.8 million; revenues comprised four months of revenue from CMP Wellness – a seller of vaporizers and cartridges. Gross margins kept steady at 33%, at par with the previous year period.

Kush Bottles Inc (OTCMKTS:KSHB) provides packaging products and solutions to producers, processors, and retailers operating in the regulated medical and recreational cannabis industry.

KSHB sells primarily into the b2b market, which includes legally operating medical and adult-use dispensaries, growers, and MIP producers (Marijuana Infused Products) in states with marijuana programs.

It offers pop top bottles; child resistant exit, paper exit, and foil barrier bags; tubes; and polystyrene, polypropylene, or silicone containers to urban farmers, greenhouse growers, and medical and recreational cannabis dispensaries.

According to the company’s press messaging, “Founded in 2010, Kush Bottles has sold more than 100 million bottles and regularly services thousands of customers across the United States and Canada. The company primarily services the B2B market, which includes legally operated medical and adult-use dispensaries, growers and marijuana-infused product manufacturers. Kush Bottles aims to be the gold standard for responsible branding and packaging in the cannabis industry.”

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Net income, counting $301,000 in amortization expense and depreciation, $4.6 million in SG&A and $943,000 in non-cash stock compensation, came at $69,000 while it was $72,000 in FY2016; the jump in operating expenses can be attributed to costs related with CMP Wellness acquisition and higher SG&A costs to expand an outside sales program. KSHB reported that working capital stood at $3.45 million as against $2.03 million as of the close of August 31, 2016.

KSHB CEO Nick Kovacevich said that 2017 was a pivotal year for the firm. According to the company call, KSHB implemented a series of development measures planned to strengthen supply chain, expand their product portfolio, grow their sales force and position company as the key provider of ancillary solutions and products to the fast growing cannabis market.

As an outcome of these efforts, their sales growth steadily recorded momentum throughout the year, leading in revenue of $18.8 million in FY2017, representing a jump of 129% over fiscal year 2016.

The purchase of CMP Wellness brings growth and revenue opportunities in the vapor segment, as well as synergies which increase KSHB’s ability to grow the supplies, services and core packaging business.

Trading at a market capitalization of $313.79M, KSHB saw some strategic moves pay off for them in 2017. Investor dollars are flooding into the cannabis sector as more and more legal dominoes fall. We will update the story again soon as developments transpire. For continuing coverage on shares of $KSHB stock, as well as our other breakout picks, sign up for our free newsletter today and get our next hot stock pick!

Disclosure: we hold no position in $KSHB, either long or short, and we have not been compensated for this article.