KushCo Holdings (OTCQX:KSHB) announced Monday (July 8) that it has filed to list its common shares on the NASDAQ Global Select Market.
The California-based cannabis company will continue to be traded on the OTCQX until its application to list on the NASDAQ has been approved. The move is an important step for the company as it establishes itself in the growing US cannabis market. KushCo became qualified to trade on OTC Market Group’s Best Market earlier this year after trading on the OTCQB Venture Market since 2016.
In a press release, KushCo Chairman and CEO Nick Kovacevich said that getting listed on the NASDAQ would raise the company’s profile by diversifying its shareholder base and “enhancing share liquidity” to support the company’s goals in the long term.
“If anybody can uplist, we certainly have a good opportunity to do so,” said KushCo CFO Jason Vegotsky in a previous interview with the Investing News Network.
The move comes after the company reported a new partnership with C.A. Fortune, a product sales and marketing agency that focuses on lifestyle brands, earlier this month. C.A. Fortune’s reach into retail channels will provide KushCo with increased access as it expands into the cannabidiol (CBD) retail space.
KushCo also announced a new 40,000 square foot distribution facility in Taylor, Michigan, last month that will support operations in the Midwest with the recent legalization of recreational cannabis use in both Michigan and Illinois.
The company’s subsidiaries and brands manufacture cannabis vaporizer products, supplies and accessories, and provide the larger cannabis sector with hydrocarbon gases and solvents. Since its founding in 2010, KushCo has offered its services to over 6,000 cannabis producers and processors across North and South America and Europe.
KushCo’s Q2 results hit a company record for quarterly revenue. Net revenue increased 240 percent year-over-year to US$35.2 million compared to US$10.4 million in the same quarter last year.
KushCo’s status as an ancillary company in the cannabis industry allowed it to apply for the move onto the NASDAQ. While there are several states in the US that have legalized cannabis for either medical or recreational use, the substance’s federal status as a Schedule I drug prevents the NASDAQ and the NYSE from listing companies that deal directly with cannabis plants and do business in the US.
KushCo’s share price increased about 3.5 percent after Monday’s announcement, ending the day at US$5.22. The company opened at US$5.30 on Tuesday (July 9) and closed at US$5.11.
TipRanks has a price target for the company of US$7.90, representing upside of over 50 percent.
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Securities Disclosure: I, Danielle Edwards, hold no direct investment interest in any company mentioned in this article.