CYPRESS, CA / ACCESSWIRE / December 11, 2019 / KushCo Holdings, Inc. (OTCQX:KSHB) ("KushCo" or the "Company"), the premier producer of ancillary products and services to the legal cannabis and CBD industries, today announced the addition of four new compliant, hemp-derived CBD brands under its Retail Services partnership with C.A. Fortune, a leading full-service national consumer products sales and marketing agency focused on lifestyle brand partnerships.
The four new hemp-derived CBD brands include:
- HeavenlyRx: A global hemp and CBD company that holds controlling ownership interests in various industry-leading assets in the hemp/CBD and THC-free cannabinoid wellness space, with a focus on hemp cultivation, processing and the manufacturing of a diverse range of traditional CBD products including oils, tinctures, balms, and vape-ready products. HeavenlyRx recently signed a letter of intent to acquire a top-ranked national CBD brand, PureKana.
- B GREAT: An emerging CBD brand that produces superior quality and full-spectrum hemp-based products, including topicals, tinctures, capsules, and hemp shots. All products use natural ingredients grown in the U.S., are produced in FDA-registered and GMP-compliant facilities, and are third-party lab tested.
- Maye: An upcoming line of CBD products by Grassroots, the largest private vertically-integrated multi-state operator with a vast presence in legal cannabis and CBD markets, particularly across the Midwest and Northeast. With roots in medical cannabis, Maye's team of professionals have helped thousands of people across the country safely introduce the wellness benefits of cannabis and CBD into their daily lives.
- Level Select: A breakthrough line of sports creams and sports roll-ons with a proprietary blend of broad spectrum and nano CBD for quick absorption. Level Select's operations span multiple geographies and farms throughout the U.S. and adhere to disciplined farming processes to guarantee high levels of quality CBD with no THC from farm to final product.
Along with the Company's first CBD brand partner, Sentia Wellness, a new hemp-derived CBD company with manufacturing and distribution capabilities, these brands will leverage KushCo's enhanced distribution capabilities through C.A. Fortune to expand their distribution into grocery and other conventional stores nationwide.
"For the past several months, we have been hard at work helping our CBD brands capture significant share in the rapidly growing, multi-billion-dollar CBD industry by onboarding them onto some of the largest national conventional retail chains," said Jason Vegotsky, KushCo's Chief Revenue Officer and President. "Currently, with the FDA still yet to deliver comprehensive guidance regarding the authorized use of CBD in food and beverage products, our market is to a large extent limited to tinctures and topicals. However, even at this early juncture, we have been able to successfully gain retailer authorizations and activate some of our brands across a variety of retail channels. We also have been building a portfolio of food and beverage-oriented CBD brand partners so that when the FDA does give guidance for these brands to include CBD in their products, we can quickly and successfully launch them into the major retailers. Regardless of the specific retail channel, brands trust and rely on us because of our deep understanding of the federal and state regulatory and compliance framework, as well as our robust distribution network to help them scale across the nation. Ultimately, this process will take time, just like any other consumer packaged goods industry, but we're encouraged to see this division gaining traction and continuing to drive higher value for our customers."
KushCo's Retail Services division is the first large scale go-to-market operation focused on helping compliant, hemp-derived CBD brands achieve mass distribution across legal markets throughout the U.S. By providing comprehensive retail solutions, insight, and strategic direction to its CBD brand partners, KushCo solves one of the biggest challenges for building a national CBD brand. In addition to enabling distribution into the national grocery chains through its partnership with C.A. Fortune, the Company is focused on helping its CBD brand partners expand into other retail channels, including pet care, convenience, and beauty categories.
Vegotsky continued: "Beyond driving significant value for our customers and helping us nurture deeper and stickier relationships with them, our Retail Services division generates 100% gross margins and is EBITDA accretive given its capital light business model. Yet perhaps the biggest value-add of this business is that it greatly enhances our competitive moat by complementing our other products and services in the CBD seed-to-sale supply chain, including our newly launched hemp trading business. In fact, we are already experiencing meaningful synergies between these two businesses, as brand owners and operators who want access to our retail distribution network are also seeking a reliable, consistent, and independently tested supply of hemp biomass and post-processed oil to develop their CBD products. This dynamic creates a virtuous cycle, whereby the more retail stores we can get our brands into, the more hemp inputs, packaging, and energy and natural products they will need from us. This demand is only expected to grow as the industry continues to expand. Overall, leveraging our ecosystem and cross-selling into our deep customer base have been the staples to our success over the past decade and will help define our future as we continue to solidify our presence in the rapidly growing and massive CBD industry."
About KushCo Holdings, Inc.
KushCo Holdings, Inc. (OTCQX:KSHB) (www.kushco.com) is the premier producer of ancillary products and services to the legal cannabis and CBD industries. KushCo Holdings' subsidiaries and brands provide product quality, exceptional customer service, compliance knowledge and a local presence in serving its diverse customer base.
Founded in 2010, KushCo Holdings has now sold more than 1 billion units to growers, processors and producers across North America, South America, and Europe.
The Company has been featured in media nationwide, including CNBC, Fox News, Yahoo Finance, Cheddar, Los Angeles Times, TheStreet.com, and Entrepreneur, Inc Magazine. While KushCo Holdings provides products and solutions to customers in the cannabis and CBD industries, it has no direct involvement with the cannabis plant or any products that contain THC.
For more information, visit www.kushco.com or call (888)-920-5874.
Forward-Looking Statements
This press release may include predictions, estimates or other information that might be considered forward-looking within the meaning of applicable securities laws. While these forward-looking statements represent the Company's current judgments, they are subject to risks and uncertainties that could cause actual results to differ materially. You are cautioned not to place undue reliance on these forward-looking statements, which reflect the opinions of the Company's management only as of the date of this release. Please keep in mind that the Company is not obligating itself to revise or publicly release the results of any revision to these forward-looking statements in light of new information or future events. When used herein, words such as: "potential," "look forward," "expect," "project," "believe," "dedicated," "building," or variations of such words and similar expressions are intended to identify forward-looking statements. Factors that could cause actual results to differ materially from those contemplated in any forward- looking statements made by the Company herein are often discussed in the Company's filings with the United States Securities and Exchange Commission (SEC), which are available at: www.sec.gov, and on the Company's website, at: www.kushco.com.
KushCo Holdings Contact
Investor Contact:
Najim Mostamand, CFA
Director of Investor Relations
714-539-7653
[email protected]
SOURCE: KushCo Holdings, Inc.