Kush Bottles Inc’s (OTCQB:KSHB) year-over-year revenue growth of 173% in the third quarter, along with the substantial increase in market share and cash position indicates that the cannabis distributor is aggressively capitalizing on the booming demand from the legal cannabis market.
Recreational cannabis legalization in some parts of United States and all over Canada has significantly boosted cannabis demand; research reports indicate that cannabis sales were to hit $75 billion, in the U.S. alone, by 2030.
Kush Bottles Inc Growth Strategies
The company claims its organic growth initiatives across all its major markets and acquisition of Summit Innovations led to its generation of $13 million in Q3 revenues.
The acquisition of Summit Innovations would allow Kush Bottles to enter the quickly-growing hydrocarbon gases and solvents market. Kush Bottles Inc has also acquired Hybrid Creative, a leading digital creative agency – which has a presence in the cannabis market as well as other traditional industries.
Additionally, the company’s acquisition of a new distribution center in Nevada would also improve its operational efficiencies and permit it to serve its clients better. Kush Bottles recently began its Koleto Packaging Solutions division that will concentrate on creating customizable products for the cannabis market.
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“During the quarter, we witnessed strong growth in our custom branded products as customers seek differentiated brand building solutions and we believe there is significant opportunity to continue to increase sales in this regard,” Nick Kovacevich, Chairman and CEO of Kush Bottles said.
Cash Position Strengthens Future Fundamentals
Kush Bottles Inc’s cash position increased sharply during the third quarter after registered direct offering, which led it to generate $32.9 million of cash. The company believes they are in a robust position to advance their business expansion strategies and fund acquisitions. Its total cash position stood around $35.7 million at the end of the latest quarter compared to $900,000 in the same period last year.
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