KushCo Holdings Inc (OTCQX:KSHB) has said it expects to generate preliminary and unaudited fiscal third quarter 2021 revenue of between $27.5 million and $28.0 million, a 21%-26% year-over-year gain, driven primarily by an increase in sales to the company's top 25 customers that include leading multi-state operators (MSOs), licensed producers (LPs), and brands.
The company noted that revenue from its top 25 customers is expected to increase by more than 60% to at least $20.5 million in 3Q.
“Not only are our sales to these customers continuing to grow, but the quality of the customers we are serving is also continuing to improve, as we have a much stronger book of the right customers than we did a year ago,” KushCo Holdings CEO Nick Kovacevich said in a statement.
READ: KushCo Holdings and Greenlane complete key regulatory condition for proposed merger
“We have spent the last three years cultivating this elite customer base, and we are even more excited by the prospect of cross-selling these customers and others with proprietary owned products, as we move closer toward the consummation of our merger with Greenlane,” Kovacevich added.
“As a combined company, we have the potential to realize meaningful revenue synergies across our complementary customer bases, as well as generate significant cost synergies that can drive profitable growth amidst the backdrop of a booming industry still in the early innings of expansion.”
California-based KushCo has established itself as a premier provider of ancillary products and services to the global cannabis and CBD industries. The company has been operating for more than 10 years, selling more than one billion units to growers, processors, producers, and brands across North America, South America, and Europe.
KushCo expects its pending merger with Greenlane Holdings Inc (NASDAQ:GNLN) to close in 3Q this year, the combination of which is expected to generate some $15 million to $20 million of annual run-rate cost synergies within two years, the companies have said.
Contact Sean at sean@proactiveinvestors.com