Nick Kovacevich, left

Nick Kovacevich, left

Legal cannabis products provider KushCo Holdings Inc. said slower vaping products sales and the coronavirus crisis contributed to a 14% revenue drop in the second quarter, while the company’s net loss widened.

The Cypress-based company also appointed Stephen Christoffersen, previously executive vice president of corporate development, as its new chief financial officer, effective today.

Get the latest OC business and Coronavirus updates

He replaces Christopher Tedford, CFO for about 18 months; Tedford was previously chief accounting officer with insurance broker Confie Seguros in Huntington Beach.

KushCo reported net revenue of $30.1 million in the three-month period ending Feb. 29, down from $35.2 million in the same period a year ago. Its net quarterly loss was $44.4 million, compared with $8.9 million last year.

Nick Kovacevich, KushCo's co-founder, chairman and chief executive, attributed the revenue drop to “a myriad of factors” including slower-than-anticipated growth for its vaping hardware following last year’s “illicit vape crisis,” as well as lag in the launch of its hemp trading business. sCalifornia had already seen lower-than-projected demand for legal marijuana. Then came COVID-19.

KushCo said revenue from the company's top customers grew 227% from the prior-year quarter to $24.6 million, or 82% of total revenue, and noted “robust sequential growth in many of our key markets, such as Illinois, Michigan, Massachusetts, and Canada.”

Shares (OTC: KSHB) traded recently at about a $70 million market cap, down 70% over the last 60 days; KushCo’s 52-week high was about $6 a share