KushCo picks up $50-million line of credit

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The cannabis packaging company is preparing for major expansion

KushCo Holdings, a California-based company that specializes in manufacturing and distributing products like cannabis packaging, is forecasting major growth for the industry right around the corner. In an effort to be prepared for the explosion and possible federal marijuana reform that is expected to be on its way, it sought financial support to have additional working capital and to possibly make some acquisitions. It found what it wanted, securing $50 million in credit.

$35 million of the credit is available in a revolving line of credit. This can be increased by another $15 million if certain terms are met. The latest financing comes from Monroe Capital, a private credit asset management firm out of Chicago, and shows the strength KushCo has in the industry. The term of the credit facility is just five years.

Announcing the credit, KushCo CEO Nick Kovacevich stated, “KushCo continues to execute on its less dilutive financing strategy that will provide the capital necessary to support our continued operations and acquisitive growth. We are excited to partner with an entrepreneurial-focused private credit firm such as Monroe, and we have plans to grow our businesses together providing critical products and services to the cannabis and CBD industry. As the size of our customer’s business grows, it’s imperative to have an adequately sized credit facility that will increase as our business grows.”

KushCo has enjoyed success the past couple of years. Most recently, it reported revenue of $41.5 million for the fiscal third quarter, which represented an increase of 200% above what it reported for the same period last year. It has previously stated that it would like to be uplisted to a major exchange, either NYSE or NASDAQ, and is reportedly still working on achieving that goal.