Kush Bottles Announces IPO
According to TheStreet.com, Kush Bottles sells approximately one million marijuana bottles a month, and things are going so well that the company is planning for an initial public offering. Kush Bottles CEO Nick Kovacevich wants to take the company even higher.
"Our bottle is a little bit cooler, a little bit different which is what this industry wants and that's not to be associated with the pharmaceutical industry," said Kovacevich.
Kovacevich and a pair of buddies founded Kush in December 2010 after witnessing the rapid growth of the medical marijuana industry in Southern California. The company quickly expanded, becoming the nation's largest wholesale distributor of child safe, medical grade containers for the legal and medical herb industries. Kush's portfolio includes not only its flagship Philips Rx Pop Top vial, but prescription bags, labels, and a variety of accessories as well. Kush Bottles, which are made domestically with FDA-approved materials, pass requirements for child safety as set forth by the Consumer Product Safety Commission. Kovacevich said Kush meets all requirements and regulations for packaging in every state with a legal herb program. There are now 23 states where medical marijuana is legal, as well as Washington D.C. "There are a lot of nuances so we are talking about different regulations in each state which we know inside and out," said Kovacevich. "We have catered our portfolio of products to match what our customers need in each state so they are compliant and above board in their practices. That's what keeps a lot of the bigger guys out of this field." The company sells online, but also has physical presences including a retail outpost in California, plus warehouses in Denver and Seattle. Kovacevich said he wants to be ready when each additional state legalizes marijuana so he keeps a close eye on both the map and the courts. Kush Bottles is finishing up its fiscal fourth quarter and Kovacevich approximates sales to be $3.8 million for the year. Last year the company sold $1.7 million worth of marijuana bottles. Kovacevich said the company is not profitable because it is reinvesting in the business. "We are looking to scale, we are looking to grow and those are the reasons why we are looking to go public," said Kovacevich. "We want access to capital and continue growing at such a fast rate." Or, in other words, like a weed.
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