Kush Bottles Inc (OTCMKTS:KSHB) Aiming at the Cannabis Concentrates Market

Kush Bottles Inc (OTCMKTS:KSHB) has confounded investors this year trading below companies with similar profiles, but recent news has revisited some positive energy to the stock. KSHB is launching a new Kush Energy line targeting the emerging concentrates market inside the cannabis industry. There are numerous statistics coming out of Oregon, Colorado and Washington demonstrating consumers shifting away from dried leaf to more oil-based products. One of the reasons for this is new users coming from a variety of demographics who are turned off by health concerns related to smoking. Kush Energy will service this industry through a set of core products like butane, propane, ethanol and other products necessary for extraction. As the CEO states, this is a perfect crossover play for KSHB and directly taps the skills of their subsidiary, Summit Innovations.

“This is yet another example of our successful strategy of purchasing complementary businesses, integrating them into the Kush Bottles platform, and then driving significant organic growth,” said Nick Kovacevich, CEO of KSHB. “Cannabis extraction is an ultra-high growth segment of the legal cannabis industry, and we have diversified our offering to capture reoccurring revenues from this demographic with many products – hydrocarbons and solvents being the most recent additions. Kush Energy’s customers also utilize our other product lines such as packaging and vaping equipment allowing a great cross-selling scenario. We expect this new division to make a major impact on our total company revenues and gross margins.”

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, “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 100 million 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.”

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“Kush Energy will provide strategic vertical diversity to the Kush brand and is already well positioned for aggressive growth while maintaining great customer service,” said Mr. Pham, KSHB’s the newly tapped leader of this project. “The rise in popularity of oils and extracts are driving the future of the cannabis industry – making ultra-high purity gas an essential aspect of our customers’ businesses. Now, with our eight distribution points for gas and solvents, we have the ability to more easily and efficiently serve the needs of our customers, alleviating their worries about running out of product and allowing them to focus on running their businesses.”

On the financial side, KSHB’s sales grew by 173% to $12.9 million, which was aided by the acquisition of Summit Innovations. This prior move highlights the move to create Kush Energy and means a renewed focus for the company, or, at worst, a more diverse portfolio.

Kush Bottles Inc (OTCMKTS:KSHB) has a market cap of 313.78M with a float of 34.74M. The company saw strong investor interest on the announcement in early trading and we will cover the news as it continues to color out. Sign-up for continuing coverage on shares of $KSHB stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

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