KushCo Holdings, merging with Greenland Holdings, is a provider of cannabis and CBD-related ancillary products
- Greenlane Holdings and KushCo Holdings finalize previously announced merger
- KushCo Holdings 'riding the growth wave' on cannabis customer growth in preliminary 3Q earnings
Quick facts: KushCo Holdings Inc.
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About the company
KushCo Holdings, Inc. - which is being taken over by Greenland Holdings Inc. - is a premier provider of ancillary products and services to the legal cannabis and CBD industries. KushCo's subsidiaries and brands provide product quality, exceptional customer service, compliance knowledge and a local presence in serving its diverse customer base, which consists of leading multi-state-operators (MSOs), licensed producers (LPs), and brands.
Founded in 2010, KushCo Holdings has now sold more than 1 billion units to growers, brand owners, processors and producers across North America, South America, and Europe, specializing in child-resistant compatible and fully customizable packaging, exclusive vape hardware and technology, and complementary solvents and natural products.
As a pioneer in the industry, KushCo continues to work to create a positive impact on the environment, society, and community through CSR and ESG initiatives, such as: offering sustainable and compostable packaging; donating PPE supplies to healthcare workers on the frontline fighting the COVID-19 pandemic; partnering with organizations such as Mission Green to offer social equity programs for industry inclusion; being one of the first in the industry to award paid time-off for all employees on November 3, 2020 (“Election Day”); and working to incorporate industry-leading corporate governance practices and a more diverse board make-up.
How it is doing
Greenlane Holdings, Inc a leading seller of cannabis accessories said it has completed a previously announced merger with KushCo Holdings, Inc, an American provider of packaging, containers, and other ancillary products for the cannabis industry.
The newly combined company brings together a total of 26 years of experience and two of the sectors pioneering cannabis ancillary product and service companies.
The recently formed entity will operate under the Greenlane banner.
Greenlane’s Class A common stock will continue to trade on the Nasdaq Global Market under the ticker symbol “GNLN”.
KushCo Holdings Inc has said its stockholders voted overwhelmingly in favor of its proposed merger with Greenlane Holdings Inc at a special meeting held on August 26, 2021.
The California-based company said over 97% of votes cast supported the merger, which will result in it becoming a wholly-owned subsidiary of Greenlane in an all-stock, tax-free business combination. Greenlane's stockholders have also approved the merger.
KushCo Holdings Inc (OTCQX:KSHB) reported third-quarter 2021 revenue of $28.3 million, a 27% year-over-year increase, boosted primarily by an increase in sales to the company's top 25 customers that included leading multi-state operators (MSOs), licensed producers (LPs), and brands.
KushCo also realized an improvement in its quarterly adjusted EBITDA with a loss of $1.1 million in 3Q, compared with a deficit of about $2.7 million during the same period last year, mainly as a result of higher revenue and company-wide cost reductions.
What management says
KushCo Holdings Inc (OTCQX:KSHB) CEO Nick Kovacevich and CFO Stephen Christoffersen tell Proactive the group expects to generate preliminary and unaudited fiscal third quarter 2021 revenue of between $27.5 million and $28.0 million, a 21%-26% year-over-year gain.
Kovacevich says this is driven primarily by an increase in sales to the company's top 25 customers that include leading multi-state operators, licensed producers, and brands. He adds there is a 'huge' pipeline of more US states legalizing cannabis, which will continue to add growth to KushCo's business.
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