Catalysts including the recent move into the Canadian marketplace and a full-force expansion of the company’s gas distribution network have turned Kush Bottles into an international player with offerings ranging from hydrocarbon gases and solvents to vaporizers and packaging.
While the 10,000 share position was valued at $45,000 at the time of the filing, Hilton Capital’s stake in the ancillary cannabis packaging and supplies company is now worth approximately $50,100 based on a last traded price of $5.01 for shares of KSHB on the OTCQB.
The quick mark-to-market gain for Hilton Capital of just over 11% is presumably due to the recent opening of a Massachusetts distribution facility to help Kush Bottles service the up-and-coming East coast marijuana industry.
Cannabis industries in states including Maine, Maryland, Rhode Island, Vermont, New Jersey, New York, and Pennsylvania are all on the rise while Massachusetts’ leads the charge.
In addition to the recent Kush Bottles position, the firm also has a small stake in The Scotts Miracle-Gro Company (NYSE:SMG) which has also positioned itself to make money as an ancillary supplier to the cannabis industry.
Although Scotts’ cannabis-focused division, Hawthorne Gardening, has been struggling as of late, the early-mover advantage and access to capital for acquisitions has positioned the company nicely for the long-term.
Why These Investments are Significant
While these two ancillary cannabis investments represent a mere drop in the bucket in comparison to Hilton Capital’s $1,276,239,892 in assets under management, it marks a turning of the tides for a firm that is primarily invested in larger, more stable risk-averse investments like Intel Corp. (NASDAQ:INTC) and the Schwab Short-Term U.S. Treasury ETF (NYSE:SCHO).
As the cannabis industry is estimated to “pump nearly $80 billion on an annual basis into the nation’s economy by 2022,” more and more money managers like Hilton Capital are going to being looking for ways to profit.
We’ll be watching 13-F filings closely to see how long Hilton Capital holds their positions in KSHB and SMG. In the meantime, be sure to subscribe to our Kush Bottles, Inc. Updates here and our Scotts Miracle-Gro Updates here so you never miss an important update.
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