KushCo Holdings to sell Roll-uh-Bowl assets to Smoke Cartel in $1.5M deal

KushCo Holdings (OTCQB:KSHB), the US provider of an array of products for the regulated cannabis industry, announced Tuesday that it will sell Roll-uh-Bowl, an online distribution platform for sales of glass pipes, to Smoke Cartel (OTCMKTS:SMKC) in a $1.5 million deal.

Under the deal’s terms, KushCo will transfer ownership of all Roll-uh-Bowl assets, including inventory, its website and social media, in exchange for shares of Smoke Cartel valued at $1.5 million plus the value of inventory.

In response, KushCo stock added 3.2% to $6.13 in Tuesday’s afternoon session while Smoke Cartel shares almost doubled to $2.05.

Read: Kush Bottles Inc reports third-quarter revenue up 173% to US$12.9mln

KushCo will also build a referral page into the Kush Bottles website to direct customers searching for glass and smoking accessories to Smoke Cartel.

“This is a win for both companies. By selling off the Roll Uh Bowl assets, KushCo will be able to continue to remain highly focused on our core business units driving our growth globally in areas across packaging, vape hardware, gas and branding services to multi-state cannabis operators,” said KushCo CEO Nick Kovacevich.

KushCo is the parent company for Kush Bottles, a packaging company catering to cannabis companies, and Kush Energy, which offers hydrocarbon gases and solvents to the cannabis and CBD sector. It also owns Hybrid Creative, a creative design agency, and Koleto Packaging, a research and development arm that drives intellectual property development and acquisitions.

Based in Savannah, Georgia, Smoke Cartel is a retailer of glass water pipes and vaporizers as well as smoking accessories and cannabis accouterments.

Story by ProactiveInvestors