KushCo Holdings Inc OTCMKTS: KSHB Facing Potential Claims From Investors

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KushCo Holdings Inc OTCMKTS: KSHB is the premier producer of ancillary products and services to the cannabis and hemp industries. KushCo Holdings’ subsidiaries and brands provide, product quality, exceptional customer service, compliance knowledge and a local presence in serving its diverse customer base.

Founded in 2010, KushCo Holdings has now sold more than 1 billion units to growers, processors and producers across North America, South America, and Europe.

The Company has been featured in media nationwide, including CNBC, Los Angeles Times, TheStreet.com, Entrepreneur, and business magazine Inc. While KushCo Holdings provides products and solutions to customers in the cannabis and CBD industries, it has no direct involvement with the cannabis plant or any products that contain THC or CBD.

KushCo Holdings Inc OTCMKTS: KSHB On April 9, 2019, KushCo announced that it would restate prior period financial statements for fiscal years 2017 and 2018 for non-cash items related to acquisitions of CMP Wellness, Summit Innovations, and Hybrid Creative. On this news, shares of KushCo fell $0.45, or over 7.75% to close at $5.35 on April 10. 2019, thereby injuring investors.
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On April 25, 2019 Pomerantz LLP is investigating claims on behalf of investors of KushCo Holdings, Inc. (“KushCo” or the “Company”). The investigation concerns whether KushCo and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.

On April 9, 2019, KushCo issued a press release announcing the Company’s decision to restate prior period financial statements for fiscal years 2017 and 2018 for non-cash items related to acquisitions of CMP Wellness, Summit Innovations and Hybrid Creative.

On this news, KushCo’s stock price fell $0.45 per share, or 7.76%, to close at $5.35 on April 10, 2019.

The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.

KushCo Holdings Inc OTCMKTS: KSHB On April 22, 2019 Announces Manufacturing and Distribution Agreement with Sun Grown Packaging to Launch Biodegradable Packaging Portfolio.
KushCo has entered a manufacturing and distribution agreement with SunGrown Packaging, LLC (“SunGrown”), a California-based provider of sustainable, customized packaging solutions to the cannabis industry. KushCo will immediately begin offering SunGrown’s current biodegradable and child-resistant packaging options to its vast customer network of over 6000 businesses. In addition, the companies will work together to launch a new line of compostable and biodegradable packaging products for use in the cannabis, hemp and CBD industries.

Pursuant to the agreement, SunGrown will partner with KushCo to develop products designed for the unique demands of the cannabis, hemp and CBD industries, while ensuring that all new products are environmentally friendly by featuring proprietary, biodegradable materials from renewable resources. This will have an immediate impact to KushCo’s top and bottom line as KushCo expects to recognize up to $12 million in revenue in the first two years of this partnership. Packaging solutions produced under the agreement have been published under protocols established by ASTM International (formerly known as American Society for Testing and Materials) and Biodegradable Products Institute to guarantee proper certification.

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