Cannabis packaging company Kush Bottles announced that the company has entered into a strategic partnership with Merida Capital, a private equity fund targeting the cannabis industry. Kush has received a $6 million equity investment from Merida, which the company will use to expand its product portfolio, build new distribution channels and penetrate new legalized markets.
The announcement comes in the wake of the company reporting a 285% rise in revenue for the first fiscal quarter of 2018, with a net income of $94,615 compared to the previous year’s loss of $161,000.
The strategic partnership will leverage Merida’s strong East Coast presence to help build Kush Bottles’ distribution platform and expand the company’s footprint in East Cost medicinal and recreational market; offering the opportunity for the company to develop and execute its acquisition pipeline with Merida’s help.
In a statement Nicholas Kovacevich, the Chairman and CEO of Kush Bottles said that Merida’s understanding of the unique dynamics of the cannabis industry, as well as its strong networks and willingness to finance Kush Bottles’ growth, would serve as an invaluable asset as the company moves to explore new markets and opportunities.
“We plan to use this capital investment to expand our range of proprietary products to meet the needs of the industry, advance our M&A strategy to take advantage of consolidation in the industry and grow market share,” Kovacevich said.
Echoing Kovacevich’s words, Merida’s Managing Partner, Mitchell Baruchowitz, expressed admiration for the team behind Kush Bottles and their work.
“Since we first started discussing a partnership and investment in Kush Bottles nearly seven months ago, we have been deeply impressed by the vision of Nick and his team and the progress they have made strategically positioning Kush Bottles as much more than simply a packaging company. Kush Bottles’ acquisitions and in-house development efforts have established the Company as a critical link in the supply chain for more than 5,000 cannabis growers, extractors, manufacturers, and retailers. The Merida team could not be more excited to put significant resources to work to build on this foundation to expand Kush Bottles’ leading position,” added Baruchowitz.