Cannabis Packaging Business Blows Up As Kush Bottles Acquires Solvent Company

Cannabis Packaging Business Blows Up As Kush Bottles Acquires Solvent Company

67
0
SHARE

There’s a whole lot of media attention given to the bajillion-dollar cannabis industry as legal markets open up in this place or that, but less mind is paid to the fast-ballooning cannabis ancillary businesses. The biggest among those might be cannabis packaging, and one of the biggest businesses in that business is probably Kush Bottles, a company which just got even bigger in its acquisition of solvent gas company Summit Innovations Gas.

California’s Kush Bottles announced Tuesday that it bought the Denver-based Summit Innovations through a merger agreement, as reported by MJBizDaily.

Kush is a diversified cannabis ancillary business, focusing mostly on cannabis packaging, but with their hands in everything from glassware to customized labels to scales, papers, and lighters. The company is “one of the market’s best performing U.S. marijuana stocks,” according to Fool.com, “rising more than 120% in the past year “

Its merger with Summit could serve two ends, getting them into the gas solvent business and possibly making its owners rich on the quick. Summit sells pure n-butane, propane, and butane/propane blends in bulk.

“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 Bottles CEO Nick Kovacevich said in a press release Tuesday.

Kush will have the option to double its shares if Summit reaches $12 million in revenue within a year after the acquisition closes, which is supposed to be on May 1. Summit will become a wholly owned subsidy of Kush and will receive of $3.2 million in the deal, as well as 1.28 million shares of common stock.

Photo via Flickr user Dick Thomas Johnson

NO COMMENTS

LEAVE A REPLY