Kush Bottles Inc(OTCMKTS:KSHB) continues to trade well over $2 a share. KSHB made a huge run last year to highs of $5 a share before coming back down to current levels.
KSHB operates in the red hot Marijuana industry that has quickly turned into a multi-billion dollar massive growth market that is sweeping across the Country with many new states legalizing the drug including California, Nevada, Maine, and Massachusetts on November 8.
Kush Bottles Inc(OTCMKTS:KSHB) is a premier packaging supplier, offering certified child-resistant and custom-branded solutions in all states that permit medical or recreational cannabis use. With over 100 million bottles sold, the company is respected for its quality products, exceptional customer service, fast deliveries, and innovative custom design and branding solutions.
Kush Bottles is one of the few cannabis-focused businesses that is publicly traded and has demonstrated profitability and revenue growth without direct involvement with cannabis plants or extracts. The Company has been featured in media nationwide, including CNBC, Los Angeles Times, Entrepreneur.com, TheStreet.com, and Inc. Magazine.
Earlier this year KSHB announced record third quarter revenues; revenues for the three months ended May 31, 2016 jumped to $2,322,638, a 94% increase over revenues of $1,198,083 in the year-ago quarter, and were 29% higher sequentially than revenues of $1,798,539 for the second quarter ended February 29, 2016. The revenue growth was primarily attributable to the Company’s continued sales growth across California, Oregon, Washington, and Colorado as well as modest but early sales from the launch of a new product line and the implementation of a new custom packaging website.
The Company achieved record net income of $23,284, or $0.00 per share, compared with a net loss of ($76,393), or ($0.00) per share, in the year-ago quarter. For the third quarter ended May 31, 2016, cost of goods sold increased to $1,588,302 from $779,652 a year earlier due to substantially higher revenues. Gross profit for the third quarter ended May 31, 2016 rose to $734,336, for a 32% gross margin compared with $418,431 and a 35% gross margin in the year-ago quarter. The substantial increase in gross profits was primarily due to the Company’s continued penetration of the California, Oregon, Washington and Colorado markets.
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Kush Bottles launched their new product line, BudGloves™, in April 2016. These premium quality gloves, created by Kush Bottles, meet the specific requirements of the cannabis industry and provides customers with an affordable and effective solution for handling cannabis plants, extracts and other products. They are powderless, non-stick, food-safe, and manufactured to meet industrial-grade standards.
In May, the Company implemented a new website that allows customers to submit design inquiries so they may customize the packaging of their specific brand. This new site has helped increase the number of return customers, attracted new first-time customers, enables scalability and has lead to higher website conversion rates and an overall return on investment.
On June 13 KSHB announced the U.S. Patent Office has approved a patent for a unique customizable mechanism on one of its best-selling child resistant packaging products.
The patent for invention number US20160167844 covers the configuration of the Company’s child-resistant tube, which enables characters and three-dimensional branded icons to be attached to the container lids. This unique feature gives the product a competitive edge, as customers can further brand their packaging in a way that stands out from the crowd.
Mr. Nicholas Kovacevich, Chief Executive Officer of Kush Bottles, commented, “As in any consumer product sector, brand marketing is a core means for our clients in the cannabis industry to differentiate themselves from their competition. Our packaging solutions are tailored to allow our clients to maintain their brand integrity, while also providing a safe and reliable product which complies with the stringent requirements of the state in which they are operating. We aim to be the gold standard for responsible, customized branding and packaging and are pleased to acquire this patent to support our rapid growth.”
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Currently sitting at just over $2 KSHB had $350k in the treasury according to their latest filing as well as significant fast growing revenues reporting sales of $2,322,638 in Q3 2016, a 94% increase over revenues of $1,198,083 in the year-ago quarter, and were 29% higher sequentially than revenues of $1,798,539 for the second quarter ended February 29, 2016. KSHB is an exciting story in small caps; the Company is a premier packaging supplier, offering certified child-resistant and custom-branded solutions in all states that permit medical or recreational cannabis use. With over 100 million bottles sold, the company is respected for its quality products, exceptional customer service, fast deliveries, and innovative custom design and branding solutions. We will be updating on KSHB when more details emerge so make sure you are subscribed to Microcapdaily so you know what’s going on with KSHB.
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Disclosure: we hold no position in KSHB either long or short and we have not been compensated for this article.