KSHB stock is moving higher this morning as KushCo Holdings (OTCQB:KSHB) announced that it will present its fourth-quarter results on November 7.
Highly Awaited
Despite the slowdown in the cannabis sector, it is important to note that there are some companies that still remain quite interesting, and one of those is KushCo Holdings. The company is involved in supplying ancillary services and products to cannabis and CBD producing companies.
Today, KushCo announced it will be publishing its Q4 financial results on November 7, and the company is going to host a conference call for analysts on the same day. There is going to be a webcast as well. The financial results will be for the period that ended on August 31, 2019.
The financial results are going to be watched quite closely by analysts and investors, considering the sort of meltdown that KSHB stock has experienced over the past months.
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Share Offering At Steep Discount
Towards the end of September, the stock experienced a significant drop after the company announced a direct share offering. The reason behind the drop was twofold. KushCo Holdings wanted to offer up 17.2 million shares, which would have equated to as much as 19% of the company’s total outstanding shares. However, the company offered a discount of as much as 35% from the previous day’s closing price on those shares. Naturally, this upset investors and KSHB stock started sliding.
Even more so than this, however, the slide in KushCo stock has had to do with basic fundamentals. The company continues to make enormous losses, and unless it turns profitable, it is going to be difficult for the stock to stage a turnaround.
On the other hand, in the long-term, analysts believe that the growth of the cannabis industry is going to fuel growth for KushCo Holdings, and the fresh capital should help the company to tide over the present crises. Last but not least, it should be noted that the company has projected to be profitable by next year.
KSHB stock is up 4% at $1.70 in Friday's morning session.
Featured image: Canva
