Kush Bottles (OTCQB:KSHB) shares are moving steadily higher since the start of this year. Its share price rose 16% in the last two weeks alone despite a broader market selloff in Marijuana industry. The North American Marijuana index slid more than 2% on Thursday, the second straight session of negative growth. Marijuana index currently stands at 236 points, the lowest level in the last two weeks.
Kush Bottles shares are getting support from its expansion strategies and strong financial numbers. It completed the acquisition Summit Innovations, LLC on Thursday for 1,280,000 shares of Kush Bottles common stock and $3.2 million in cash.
Summit Innovations is among the most prominent distributor of hydrocarbons to the legal cannabis industry. Kush Bottles management believes that the acquisition will open new market opportunities for the company in the space of gas supplying to cannabis extractors.
Nicholas Kovacevich, CEO, and Chairman of Kush Bottles said, “Gas is the lifeblood of the cannabis market, and Summit Innovations offers a broad range of hydrocarbon gases that meet the complex needs of cannabis extractors across the country. By bringing Summit Innovations under the Kush Bottles umbrella, we expect to leverage synergies in our distribution channels to grow sales at both Summit and our existing business lines.”
Beside from the latest acquisition, the company has been impressing investors amid its robust revenue growth. Its sales rose more than 240% year over year to $10 million in the latest quarter. The strong revenue growth was due to its expansive product portfolio, which included vaporizers, packaging and branding solutions.
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The company’s liquidity position improved sharply in latest quarter. Its cash balance rose to $7.1 million from $0.9 million in the same period last year. This substantial increase in cash balance was brought by $6 million equity investment by its new strategic partner, Merida Capital Partners.
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