Kush Bottles (OTC:KSHB), Inc. saw its shares drop nearly 18% this past Friday on high volume despite announcing big news.
The provider of packaging, supplies, vaporizers, hydrocarbon gases, solvents, accessories and branding solutions for the regulated cannabis industry, has said it has launched a new division called Koleto Packaging Solutions.
The new division will bring new, FDA-compliant packaging solutions to the pharmaceutical and veterinary industries. It will be run by executive vice president Edd Pratt and will serve veterinary clinics sa well as pharmaceutical companies in the U.S.
Kush Bottles’ CEO Nick Kovacevich stated, “As a leading provider of packaging solutions to the cannabis industry, we have an unrivaled track record of creating products that are elegant, while remaining compliant with all of the various state and local regulations. This expertise makes us uniquely suited for scaling our institutional knowledge into other heavily-regulated industries. Virtually all of our products are related to other industries and we see important applications for our child-resistant containers that adhere to stringent FDA regulations, which we believe makes these products relevant to pharmaceutical and veterinary clients.”
“Additionally, our expertise in incorporating customizable branding into our packaging solutions will help clients in these industries achieve a one-of-a-kind look and feel for their products. We believe that entering these new market verticals will allow us to leverage our existing knowledge and infrastructure to significantly expand this underserved market from a packaging innovation perspective,” he added.
He concluded, “In speaking with many of the key stakeholders, such as the manufacturers and distributors, we see an opportunity to address how packaging in pharmaceutical and veterinary industries are handled, stored and used and aim to create a solution that fits the end-users’ specific needs. Our priority is finding packaging solutions that ensure the quality and safety of all pharmaceuticals while addressing the problem of stale innovation.”
The company believes that up to now, there has been little creative and innovative packaging solutions available. The division will offer child-resistant packaging and state-of-the-art solutions for nearly any product or device.
According to Grand View Research, the global pharmaceutical packaging market size was valued at $77.65 billion in 2016 with North America having the largest regional share of over 40% in the market that year.
Kush Bottles (OTC:KSHB) also recently announced that it has entered into definitive agreements with investors for the purchase and sale of 7.5 million shares of common stock, par value $0.001 per share, and warrants to purchase up to 3.75 million shares of common stock at an combined offering price of $4.80 per share, pursuant to a registered direct offering. The warrants will have an exercise price of $5.28 per share and will be exercisable immediately. They will expire five years from the date of issuance.