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KushCo Q2 sales up 23% QoQ ahead of the merger with Greenlane

KushCo Holdings, Inc. (OTCQX: KSHB) posted revenue of $ 32.9 million for the second quarter, a sequential increase of 23% and growth of 9% year over year. The gross profit (according to GAAP) was 20% compared to 30% in the previous year. On a non-GAAP basis, gross profit was approximately 23%. Selling, general, and administrative expenses were approximately $ 10.9 million compared to $ 27.2 million for the corresponding quarter last year. On a non-GAAP basis, cash sales, general and administrative expenses were $ 8.4 million, down approximately 38% year over year. Net loss was approximately $ 5 million on a GAAP basis and $ 3.1 million on a non-GAAP basis compared to $ 44.4 million and $ 17.5 million, respectively, for the same period last year. Adjusted EBITDA was negative. The company posted a loss of $ 0.7 million for the second quarter compared to a loss of $ 14.8 million for the same period last year. As of February 28, KushCo had $ 35 million in cash, compared to $ 5.7 million in the previous quarter. The sequential increase in cash is due to KushCo’s recent capital increase. In March, the Cypress, Calif. Based company raised approximately one million in funding to fund debt repayment, product development, acquisitions, investments and other business opportunities, and to provide working capital. “We are pleased that we not only achieved significant sequential sales growth in the second quarter of fiscal year 2021, but above all that we can again achieve robust year-on-year sales growth if we continue to press ahead with our strategy of a stronger focus on the top MSOs, LPs and leading brands, “said Nick Kovacevich, chairman and CEO of the company, on Thursday. Merger with Greenlane Holdings KushCo is poised to complete the upcoming merger with Greenlane Holdings, Inc. (NASDAQ: GNLN) in the late second or early third quarter of the 2021 calendar. Under the agreement, KushCo agreed to become a wholly owned subsidiary of Greenlane. The transaction is expected to generate annual cost synergies of $ 15 million to $ 20 million over the two years following closing. The combined company is expected to have a market capitalization of over $ 350 million. Upon completion of the merger, Kovacevich will become CEO of the combined company. Greenlane’s Bill Mote will oversee the finance department and Aaron LoCascio co-founder will become president. Photo by Avery Meeker on Unsplash See more from BenzingaClick here for option deals from BenzingaCannabis Dispensary Openings: Trulieve, Ayr, Flut, Kekse, MedMen, Curaleaf, Inner Spirit, C3 IndustriesCannabis Mover & Shaker: Cresco, Fyllo, Generation Hemp, Treez, Medterra © 2021 Benzinga does not offer investment advice. All rights reserved.

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