KushCo Holdings Inc. tiptoes around the federal laws on marijuana by selling supplies to the cannabis industry, but not getting involved with the controversial product itself.
Now, the Garden Grove-based company (OTC: KSHB) is seeking a similar strategy by distributing cannabidiol, the sibling of THC without the psychoactive component.
Often known as CBD, it allegedly has medicinal and therapeutic effects ranging from antiepileptic, antispasmodic, and anxiolytic properties to overall feelings of wellbeing.
“The maturation of the cannabis industry has opened up countless avenues for business development across the industry’s supply chain,” Jason Vegotsky, president of KushCo said in a statement. “The cannabis industry continues to scale at an ever-increasing rate.”
Trader Joe’s Vet
To accommodate the company’s CBD expansion, KushCo has established a new retail services department, which will be managed by Ryan Savage.
He has 15 years of consumer packaged goods industry experience with Sprouts, Target, Amazon, Kroger, and Trader Joe’s.
The main focus of the new department will be on industry education, regulatory compliance, and connecting CBD brands across retail channels.
KushCo, which has a $391 million market cap, is the most highly valued cannabis-related company in Orange County.
Last month, it filed to list on the Nasdaq Global Select Market. In June, the Business Journal reported that it received a $21.3 million investment from New York-based Hudson Bay Capital Management LP.
According to the consensus of eight analysts covering the stock, KushCo is expected to triple revenue in fiscal 2019 to about $148 million with a further 61% increase to $239 million in fiscal 2020.
