Small business-to-small business company KushCo Holdings, Inc. (OTCQX: KSHB) is seizing on a new chance this week to improve legitimacy and combat lingering troubles with the unlicensed cannabis market as a lot more states take up legalization measures.
KushCo just struck a distribution deal with provide chain authentication company De La Rue. By way of that partnership, KushCo will now offer anti-counterfeit safety labels custom branded to client specifications.
These labels for cannabis merchandise will incorporate IDs for digital verification to track inventory and sales information, improve packaging possibilities, and assure solution authenticity.
The finish objective of supplying these labels is to defend licensed cannabis organization reputations and guard against fraudulent merchandise meant to appear genuine. Discussing the new agreement with De La Rue, KusCho CEO Nick Kovacevich commented:
It is our duty to develop customer trust in addition to empowering governments and brands. Counterfeit merchandise undermine the cannabis market by hurting sales, cheating governments out of tax income, and eroding customer self-confidence although placing their wellness at danger. KushCo wants to supply the tools for our clientele to have higher transparency and accountability.
Possible wellness difficulties have develop into a minefield for the market in the final month as unlicensed THC vape merchandise are often cited in reports of seven people who died in the U.S. from an apparently vape-connected lung illness.
When the root bring about of that problem has not however been determined, the U.S. federal government has currently promised a crackdown on non-tobacco flavored vape merchandise in the close to future.
In other current organization news, KushCo’s Chief Income Officer Jason Vegotsky spoke at the MJBizCon International Conference earlier this month to go over mergers and integrations in the market.
The organization furthermore closed on a $50 million credit facility from private firm Monroe Capital LLC back in August to fuel additional development each on the cannabis and CBD sides of operations. On that latter front, the organization launched a retail solutions division this summer season to help corporations getting into the CBD industry at scale.
KushCo’s stock price tag has continued to decline more than the final month, trading at $three.00 a share right now, which is down from $four.04 this identical time final month and substantially dropped from the $7.03 price tag in early January.