One of the larger ancillary U.S. cannabis companies announced Tuesday that it just got even bigger.
California-based Kush Bottles revealed in a news release that it acquired Colorado-based Summit Innovations, a purveyor of hydrocarbon gas used by marijuana extract producers, through a merger agreement.
Under the terms of the deal, Summit Innovations will become a wholly owned subsidiary of Kush in exchange for 1.28 million shares of common stock and $3.2 million in cash.
Kush, a public company that trades as KSHB on the over-the-counter markets, also has the option to issue up to double that number of shares if Summit hits $12 million in revenue in the year after the acquisition closes.
The deal is expected to close by May 1.