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Kush Bottles Inc (OTCMKTS:KSHB) Partnered Up And Soaring Higher

Kush Bottles Inc (OTCMKTS:KSHB) Partnered Up And Soaring Higher
Written by
Aaron Smith
Published on
October 31, 2016
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Kush Bottles Inc (OTCMKTS:KSHB) is trading up over 300% from the middle of August due to its new packaging solutions, partnerships with Acology and Bud Bar Displays, upcoming conference presentations and, of course, the election. The stock started trending upwards in the middle of August after announcing that it was adding a new 'Kush N Slide' bag to its packaging lineup. KSHB has a low-float of 2.3 million shares which is attractive to traders because it has the potential to move higher very quickly due to supply and demand. Although volatile, due to its low-float and market cap, KSHB has the ability make explosive upside moves resulting in large gains in a short period of time.KSHB is a one-stop-shop packaging solution provider that markets and sells packaging products and solutions to customers operating in the regulated medical and recreational cannabis industries. In Colorado, for instance, all marijuana storage containers and bags must be tested as child-safe, which is why KSHB has teamed up with several innovative manufacturers in order to develop exit bags and other regulation-approved products for dispensaries to use as packaging for end users to carry product out of their stores.The ‘Kush N Slide’ child-resistant exit bag was added in August to its pop-top bottle packaging solutions and sold to dispensaries to use as packaging for end users to carry product out of their stores. Even though marijuana is quickly gaining legal status in one form or another across many states, the distribution and procedure for handling the product have to follow the guidelines set by each state’s regulatory agency. KSHB expects the market demand of exit packaging to increase as more states implement legal cannabis programs and enact regulations requiring child-resistant exit packaging.A partnership agreement was signed between KSHB and Acology Inc (OTCMKTS: ACOL) on September 20th. Both stocks have been rising as the US moves toward the pivotal November election. California is now expected to ratify Proposition 64, legalizing cannabis for recreational use and sending orders for compliant packaging soaring.Acology's signature product, the MedTainer - -a store, grind and pour packaging solution -- has been gaining traction with sales exceeding expectations for calendar 2016. Nicholas Kovacevich, Co-Founder and Chief Executive Officer of Kush Bottles, said:

"The MedTainer is a great addition to our growing portfolio of customizable products, which have been shown to create a steady stream of recurring revenue, as customers typically reorder customized products. The MedTainer was particularly appealing to us because our customers can use it as a promotional giveaway or accessory cross-sell to help build their brand."

Rather than rest, on October 19th KSHB partnered up again. This time with Bud Bar Displays to market its high-end cannabis merchandising displays. The jars meet regulations in many states, including Washington, which has the strictest cannabis display regulations in the United States. KSHB will utilize their distribution network to sell Bud Bar Displays to its current customer base, as internal market research found an increasing demand for products in the high-end merchandising category. Nick Kovacevich, Co-Founder and CEO said:

"We continue to survey our industry to determine market demands and identify product lines that are poised to succeed…Bud Bar Displays will fill a gap in our product portfolio and will give us one more item to sell to our growing customer base."

KSHB will highlight these issues when Kovacevich speaking at two prominent conferences in the coming weeks, the New England Cannabis Convention and the Entrepreneurial Opportunities Forum.KSHB has a relatively strong set of financials after the company reported its FY16-Q2 ending 5/31. The balance sheet reflected that the company has $2.2mm in current assets, including $354K in cash, $212K in net receivables and $1.1mm in inventory. Total assets are $4.8mm of which $2.4mm is ‘goodwill’ from its acquisitions and $226K in property and equipment. Total liabilities are $943K. Consequently, the Equity (Assets less Liabilities) is $3.8mm.At the present price, KSHB has a market valuation of $202 million. As we sprint into the election in the next two weeks, KSHB is expected to heat up along with the rest of the sector. With its new packaging solutions, strategic partnerships, upcoming conference presentation and the election just around the corner, it appears the bull run for KSHB has more to go. We will be updating our subscribers as soon as we know more. For the latest updates on KSHB, sign up below!Disclosure: We have no position in KSHB and have not been compensated for this article.

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