Kush Bottles Inc

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 including CBD manufacturers.

Founded in 2010 as a packaging and supplies company for dispensaries and growers, Kush Bottles has sold more than 1 billion 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.

Kush Bottles aims to be the gold standard for responsible and compliant products and services in the cannabis industry. Kush Bottles has no direct involvement with the cannabis plant or any products that contain THC or CBD.

overview

Overview

Kush Bottles is a dynamic sales and distribution platform that provides packaging, supplies, vaporiser products, accessories, and branding services to cannabis dispensaries, retailers, growers, and processors. With their value-added evangelical salesforce, their highly trained, in-house sales team is critical given the early stages of this industry. The California-based company was founded in 2010 with the goal of helping entrepreneurs entering the cannabis industry overcome the many barriers to entry.

Kush Bottles services more than 3,000 producers, processors and retailers in the wholesale/B2B market for both medical and legal recreational use and they’ve created one of the largest product libraries in the cannabis industry, with distribution serving North America, South America and Europe. The Company aims to be the gold standard for responsible, customised branding and packaging in this rapidly accelerating industry.

As Nick Kovacevich (Founder and CEO) said,

“So now, imagine you have a license to extract oil, THC oil. All you have to worry about is running your machine, putting trim through there, and pulling out THC oil. From there, you just buy everything else from Kush Bottles, and you’re on the market with a premium product that’s infused with Terpenes, that’s differentiated and bioavailable to the patient.

And it comes in a premium cartridge that does not leak, with a branded battery, with a nice box or blister packaging that goes around it, and a label that’s compliant. Boom.”

Differentiators

The uncertain regulatory conditions in the US actually work in Kush Bottle’s favour. More regulation and stricter requirements – particularly around child tamper bottles and packaging – perfectly positions Kush Bottles as the supplier of choice.

Not only do they work closely with the MEA to understand the rules (applicable to each state) but also to keep abreast of the rule changes. They then build product to ensure the specifications adhere to the required regulations.

  • Value-added supplier and trusted partner
  • Regulatory insight helps customers remain compliant
  • More than 1800 SKUs across more than 15 product categories
  • Huge emphasis on child resistant packaging
  • Strong branding and awareness
  • Physical presence in key states for quicker and more effective delivery capability
  • Unique relationships with the Marijuana Enforcement Agency (MEA)
  • Offer a turnkey solution to retailers – from the packaging, labelling and ultimately – the branding

Highlights

  • Fully branded, FDA-compliant child-resistant packaging solutions provider
  • 3000 accounts, with no customer > 10%
  • Multi-state operations
  • Solutions for growers, processors and retailers
  • First OTC cannabis stock to be covered by top-tier Wall Street firm

Comparative Quarterly Revenue

reach

West Coast Coverage

Kush Bottles has facilities in the three largest U.S. cannabis markets (CA, WA, CO) with distribution serving North America, South America and Europe. A physical presence in key states enables the Company to rapidly meet customer demand and reduce shipping costs.

growth

Having been founded in California in 2010, the company is very well established in this state. The largest player by market share on the West Coast, the company recently hired its first employee on the East Coast as it looks to exponential growth in this region.

Riding the wave…

As new markets open up, Kush Bottles expands their sales force to drive first-mover advantage; getting to prospects before they establish a packaging partner. An early and local presence in new markets creates significant brand value in a grassroots and highly fragmented industry.

Kush Bottles has invested significantly in personnel, facilities, technology, and systems to support organic and acquisitive growth Specific departments focused on accounting, fulfilment, IT, marketing, product development, sales & sourcing Kush Bottles can use its stock as currency and has done 3 acquisitions to date

Products

Diversified Product Range

The Kush Bottles product portfolio consists of packaging for a variety of cannabis products, supplies for growing and processing, accessories for resale, as well as custom branded solutions to help customers increase brand value and build customer loyalty.

The company offers a wide array of products that meet the needs of cannabis business owners while satisfying the stringent regulatory requirements that exist in many states.

management team

Nick Kovacevich – CEO

In his role as CEO for Kush Bottles, Nick directs all business relations and financial strategy for the company.

Nick also oversees the organisation’s senior management team. Nick has been integral in making critical strategic, growth, and financial decisions since the company’s inception.

Nick holds a Bachelor of Science from Southwest Baptist University where he studied Sports Management and earned Academic All-American honours.

Ben Wu – President & COO

Ben Wu brings to Kush Bottles valuable experience in managing small, rapidly growing businesses.

Prior to joining Kush Bottles, Ben served as a Vice President at Wedbush Capital Partners, a private equity fund focused on acquiring professionalizing and accelerating the growth of small entrepreneur owned companies.

He is very familiar with a broad range of industries including manufacturing, distribution, branded consumer products and packaging.

Ben joined Kush Bottles in February 2014 and has been instrumental in the development of the Company.

Jim McCormick – CFO

On August 1, 2017, Jim McCormick, was appointed as the Company’s Chief Financial Officer.

Prior to his appointment, from 2016 through 2017, Mr. McCormick served as a management consultant in the consumer goods sector including companies operating within the cannabis industry.

From 2014 through 2016, Mr. McCormick served as the Chief Financial Officer of Electronic Cigarettes Group International, a Grand Rapids, Michigan based electronic cigarette marketing and distribution company..