Cannabis Industry Supplier KushCo Takes 19.9% Stake In Xtraction Services

Specialty finance venture Xtraction Services Holding Corp. XS XSHLF has entered into a strategic partnership with KushCo Holdings Inc. KSHB.

The Xtraction Services-KushCo Deal 

KushCo is taking a 19.9% ownership stake in Xtraction Services, Xtraction said in a Friday press release. 

Xtraction Services was also given the first right of refusal concerning leasing services to current and future KushCo customers.

KushCo was granted a similar first right of refusal to provide its products to current and future Xtraction Services customers.

The partnership is also being touted as an opportunity to work on joint marketing and promotional campaigns.

Xtraction's relationships with 70 original equipment manufacturers were one reason for KushCo's decision to invest in Xtraction, KushCo CEO and co-founder Nick Kovacevich said in a statement.

Kovacevich called the strategic partnership “the best option for KushCo and our customers.”

The CEO and co-founder highlighted KushCo's ability to indirectly offer customers equipment financing solutions and directly facilitate hemp biomass delivery for extraction efforts.

“Altogether, this strategic move represents an excellent entry point to provide highly demanded equipment financing solutions to our customers, generate attractive recurring revenue streams and higher margins, and cross-sell our customer base even further to earn a bigger piece of every transaction in the cannabis and CBD industries.”

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KushCo, Xtraction Price Action

KushCo shares were down 0.51% at $1.97 at the time of publication, while Xtraction shares were trading 7.4% higher at 27 cents. 

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