KushCo Holdings Inc (OTCMKTS:KSHB) has agreed with holder of its senior unsecured notes to convert $5 million worth of notes to help boost its balance sheet and liquidity. The deal will help offset 18.5% of the total debt amount of $27 million expected to mature in April 2021. The notes will be priced at $0.94 per share and will attract a 15% discount.
Move Aimed at Improving the company’s liquidity and financial position
In a bid to enhance its liquidity and financial position, the company has taken several measures in recent months, including implementing cost-cutting measures, right-sizing the business and converting part of its share reserve. According to KushCo’s CFO Stephen Christoffersen, the company has been working hard to address its debt, and the current buy out will help address a significant percentage of its indebtedness. He added that the transaction will increase its net income, boost its financial position, strengthen the balance sheet, and fill any financial gaps that may arise in the near future.
According to Christoffersen, the transaction will also strengthen the company’s balance sheet, increase its cash flow, and boost its overall financial position. The deal will also help the company the need to raise more equity capital in the near future.
KushCo Holdings’ President and Chief Revenue Officer Jason Vegotsky announced that he will resign from the position and join the company’s advisory board. Vegotsky reached an agreement with the company to part ways to allow him pursue other interests in the cannabis industry. According to Vegotsky, his focus will shift towards maximizing his network, skills, and entrepreneurial drive to develop cannabis start-ups. His responsibilities will be reassigned between Nick Kovacevich, a Co-founder, Chairman, and CEO and CFO, Stephen Christoffersen. Senior Vice President of Sales and Product, Brian Stewart, and Senior Vice President of Business Development, Carmen Lam, will be in charge of the salesforce, growth of the customer relationships, and overseeing the day-to-day management. Both have a combined sales and customer relationship experience of over 20 years, having worked in companies like Wegman’s, MAC Cosmetics, Allergan, and PepsiCo.