Cannabis firm KushCo raises $34 million to fund working capital, new technology

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California-based KushCo Holdings, a diversified marijuana company specializing in packaging and other products and services, closed on a $34 million stock funding that comes on the heels of a similar direct offering last June.

KushCo plans to use the latest funding much as it did its $36 million June raise – to fund working capital, growth needs and technology investments, according to a news release.

The latest offering involves roughly 6.5 million shares of common stock and warrants to buy about 3.2 million shares of common stock at a combined price of $5.25 a share.

According to the release, the warrants are exercisable immediately and will expire five years from the date of issuance.

Based in Garden Grove, KushCo shares (OTC: KSHB) were trading at $5.44 at midday Tuesday in the over-the-counter market.

“As we progress through fiscal 2019,” CEO Nick Kovacevich said in the release, “we remain acutely focused on building out a scalable, sustainable business, executing on our cross-selling strategy and being a first-mover in new domestic and international markets.”

KushCo’s marijuana holdings include Kush Supply Co., Kush Energy, The Hybrid Creative and Koleto Innovations. The latter two are the company’s creative design and research and development arms, respectively.