California-based KushCo Holdings, a cannabis company specializing in ancillary products such as packaging, closed on a $50 million credit facility that will be used for working capital and potential acquisitions.
The transaction consists of a $35 million revolving line of credit that can be increased by $15 million subject to certain terms, according to the company.
KushCo CEO Nick Kovacevich said in a statement that it is “imperative to have an adequately sized credit facility that will increase as our business grows.”
Since June 2018, KushCo has raised a total of $70 million in stock fundings.
KushCo recently reported revenues of $41.5 million for its fiscal third quarter, more than triple the amount in the same period a year ago. Losses increased slightly to $10.6 million.
Shares of the company, which trade on the over-the-counter exchanges under the ticker symbol KSHB, were up nearly 4% to $3.97 at midday Thursday.
KushCo recently applied to be listed on the Nasdaq.
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