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.
“Integrating this broad gas portfolio into our large distribution platform will further diversify our business by offering another unique product line that is highly complementary to Kush Bottles’ existing product inventory,” Kush CEO Nick Kovacevich said in the release.
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.