GARDEN GROVE, Calif., Jan. 22, 2019 (GLOBE NEWSWIRE) -- PRESS RELEASE -- KushCo Holdings, Inc., the parent company of Kush Supply Co., Kush Energy, The Hybrid Creative and Koleto Innovations, which provide a range of services and products for the regulated cannabis, CBD and other related industries, has announced it closed a registered direct offering of 6,476,190 shares of common stock and warrants to purchase 3,238,095 shares of common stock with a combined purchase price of $5.25 per share on Jan. 18, 2019. The warrants have an exercise price of $5.75 per share, are immediately exercisable and will expire five years from the date of issuance. The gross proceeds of the offering are approximately $34,000,000 before deducting placement agent fees and other estimated offering expenses. The company intends to use the net proceeds for general corporate purposes, including, among other things, working capital, product development, acquisitions, capital expenditures and other business opportunities.
A.G.P./Alliance Global Partners acted as the lead placement agent in connection with the offering.
Compass Point Research & Trading, LLC acted as co-placement agent in connection with the offering. Northland Securities, Inc. acted as a financial advisor in connection with the offering.
KushCo’s Chief Executive Officer Nick Kovacevich commented, “We continue to be very pleased with our rapid revenue growth and significant customer expansion, as evidenced by our recently announced long-term supply arrangements-in-principle totaling $75.0 million. We believe this recent capital raise will continue to allow us to appropriately fund our working capital needs and fuel our continued sales trajectory and meet our growing customer demand. The cash proceeds will also support our current investment in our technology platforms leading to improved supply chain efficiencies. As we progress through fiscal 2019, we remain acutely focused on building out a scalable, sustainable business, executing on our cross-selling strategy and being a first-mover in new domestic and international markets.”
This offering was made pursuant to an effective shelf registration statement on Form S-3 (File No. 333-221910) previously filed with the U.S. Securities and Exchange Commission (the “SEC”), and an additional registration statement on Form S-3 filed pursuant to Rule 462(b) under the Securities Act, which became effective upon filing on Jan. 16, 2019 (File No. 333-229264). A prospectus supplement describing the terms of the proposed offering has been filed with the SEC and is available on the SEC’s website located at http://www.sec.gov. Electronic copies of the prospectus supplement may be obtained from A.G.P./Alliance Global Partners, 590 Madison Avenue, 36th Floor, New York, NY 10022 or via telephone at 212-624-2006 or email: [email protected].
