Equity in Focus KUSH BOTTLES INC COM USD0.001 (OTCMKTS:KSHB)

by RJohnson | Last Updated: April 6, 2016

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KUSH BOTTLES INC COM USD0.001 (OTCMKTS:KSHB) operations have achieved cash flow positive and is relatively unknown by many investors. Kush Bottles operates in packaging industry. Its offering includes certified child-resistant and custom-branded solutions in all states that permit adult-use or medical marijuana, and Canada. It has sold over 100 million bottles.

The company has an e-commerce site where it sells many of its products. According to Alexa, a website ranking site owned by Amazon, it is the 158,000 most popular site in the United States and top 782,000 website in the world which is an improvement over 350,000 in its global rank showing that the excitement around the company continues to grow. The website has a strong presence with more than 70% of visitors spending over 3 minutes on the site. Google trends of Kush Bottles shows the explosive trend behind Kush Bottles.

 

KSHB Website Rank

KSHB Website Rank

Website Engagement

Website Engagement

 

Google Trends of Kush Bottles

Google Trends of Kush Bottles

KSHB fills a critical and on-going need in the growing legal marijuana industry by providing a wide range of packaging solutions. Its flagship product is a full line of certified child-safe containers. Many states and jurisdictions are mandating that all cannabis products must be sold only in child-resistant containers. If more states mandate this requirement, it will put upward pressure on the company’s growth and propel it to new levels.

The CEO launched the company in 2010 and recently took the company public in an IPO which is very different from many marijuana companies who have come into existence through reverse mergers or existing penny stocks changing their strategies to focus on the cannabis boom. An IPO requires an extensive business plan, outlining risks, and financials which institutional investors buy shares of the company.

Since the IPO the stock has lost roughly 50% of its market value; however, the company continues to operate soundly. KSHB posted growth of 177% for first quarter 2016 growing form $0.62 million in first quarter of 2015 to $1.72 million in first quarter 2016. The company also posted a positive cash flow from operations of $0.12 million.

CEO Nicholas Kovacevich stated “We are pleased to continue to show strong financial performance, and are especially proud that we began our fiscal year by posting a profitable first quarter. These results are a testament to the strong management team we have in place, and a validation of our business plan. As we move forward, our big focus will be on accelerated growth by putting our capital to use in developing new product lines, expanding to new territories, and continuing to strengthen our brand and market presence.”

On March 22 2015, Nicholas Kovacevich, Co-Founder and CEO of Kush Bottles, was named by the Orange County Business Journal as one of the top leaders in the Southern California area. This is the second consecutive year that Kovacevich has received this honor. Kush Bottles recently became the first company in the nation to introduce a line of certified containers that meet the new regulations requiring manufacturers and sellers of electronic cigarettes to use child-resistant packaging for liquid nicotine containers.

KSHB is currently trading at a $51 million market valuation. The company has had a keen eye for acquisition as given its recent success of Dank Bottles, LLC which launched KSHB to new levels and significantly increased revenues. With government mandates around child-safe containers, the company is poised for rapid growth as it continues to expand its product offerings.

We will be updating on KSHB when more details emerge so make sure you are subscribed to Microcapspot so you know what’s going on with KSHB.

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Disclosure: we hold no position in KSHB either long or short at the publication of this article.

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