Cannabis Industry Pioneer KushCo Raises $40 Million In a Direct Stock Offering
KushCo Holdings Inc. is a sponsor at the Benzinga Cannabis Capital Conference on February 25-26, 2021. The information contained in this article in no way represents investment advice or opinion on the part of Benzinga or its writers and is intended for informational purposes only.
After a shifted year, 2021 is blooming as most cannabis stocks are on the rise with a promising future ahead. Companies like Aurora Cannabis (NYSE: ACB), Columbia Care (OTC: CCHWF), TerrAscend Corp.(OTC: TRSSF), and KushCo Holdings Inc. (OTCQX: KSHB), among others, are in the eyes of the market and investors.
KushCo Holdings Inc., a provider of ancillary products and services to the legal cannabis and CBD industries, is seeing brighter days having achieved adjusted EBITDA profitability in the past two quarters for the first time in more than three years. They recently raised $40 million in equity capital and intend to use the net proceeds to pay down its debt and for general corporate purposes including working capital, product development, acquisitions, capital expenditures, and other business opportunities.
In an impressive turnaround, this is the highest amount Kushco has ever raised in a round with the deal oversubscribed three times, reflecting the vastly improved investor sentiment and demand around the company.
Corporate Highlights
Founded in 2010, KushCo is a cannabis pioneer in the industry. The company has sold over 1 billion units and regularly services legally operated medical and adult-use growers, processors, and producers across North America, South America, and Europe.
Recently, Kushco reported its partnership renewal with Abstrax Tech, a provider of research, development, and production of cannabis and botanically-derived terpenes.
Additionally, the company hit record December sales of $14.7 million and expects to generate between $130 million and $160 million in revenue and between $5 million and $7 million in adjusted EBITDA for its fiscal 2021.
These promising results and execution from the KushCo team, especially its CEO Nick Kovacevich who has been with the company since it was founded, reinforce the great future ahead.
For more information, please visit KushCo.com.
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