KushCo Renews Partnership with ABSTRAX to Bring Groundbreaking, Custom-Tailored Terpene Solutions to KushCo Customers

Rhea-AI Summary

KushCo Holdings (OTCQX: KSHB) has renewed its partnership with ABSTRAX, a leader in cannabis-derived terpenes, enhancing its service offerings. This renewed collaboration will allow KushCo customers to access exclusive discounts on ABSTRAX products, alongside custom terpene profiles and innovations. The partnership promises a 100% gross margin for KushCo on referrals made to ABSTRAX. Despite this positive development, CEO Nick Kovacevich emphasized that KushCo will not handle terpenes directly due to regulatory restrictions. The partnership aims to foster growth and innovation in the cannabis sector.

Positive

• Renewed partnership with ABSTRAX to enhance product offerings.
• KushCo will receive commissions on referrals to ABSTRAX, contributing to 100% gross margin.
• Customers can enjoy early access to innovative terpene-infused products.

Negative

• KushCo will not purchase or distribute terpenes due to lack of regulatory clarity.

CYPRESS, CA / ACCESSWIRE / February 17, 2021 / KushCo Holdings, Inc. (OTCQX:KSHB) (''KushCo''), a premier provider of ancillary products and services to the legal cannabis and CBD industries, has renewed its partnership with Abstrax Tech ("ABSTRAX"), an industry leader in research, development, and production of cannabis and botanically-derived terpenes.

Having recently celebrated its ten-year anniversary, KushCo has established itself over the past decade as a trusted partner providing ancillary products and solutions to the leading multi-state operators ("MSOs"), licensed producers ("LPs"), and regional brands in the legal cannabis and CBD industries. An industry trailblazer in its own right, ABSTRAX employs award-winning product developers and scientists armed with three-dimensional strain analysis technology to extract, study, and perfect aromatics and flavors.

Under this partnership, KushCo will garner discounted ABSTRAX pricing for its customers and will receive commissions for any referrals it makes to ABSTRAX, representing 100% gross margin to KushCo. In addition, ABSTRAX will provide KushCo customers with hyper-customized offerings and free custom terpene profiles. KushCo customers will enjoy early access to exciting ABSTRAX product innovations, such as its terpene-infused pre-roll papers, cones, and wraps. Each product has been crafted to deliver tangible benefits and provides unforgettable sensorial experiences.

"With the continued lack of state and federal government regulations around the inhalation of terpenes, KushCo will not purchase, sell, store, or distribute terpenes," said Nick Kovacevich, KushCo's Chief Executive Officer. "Nonetheless, we want to offer our valued customers special access to what we consider to be world-class terpenes from a provider staunchly devoted to safety, superior manufacturing standards, and 100% product purity. Over the years, ABSTRAX has continued to innovate and expand its impressive catalog. With expertise in customized blends, ABSTRAX will provide incremental value and "budding"-edge technology for our customers, who place their trust in KushCo to provide the highest quality, custom-tailored vape, packaging, and energy products."

ABSTRAX CEO Max Koby added: "We are fully devoted to the study, production, and perfection of botanical and cannabis-derived functional flavors, aromas, and terpenes. As we continue to uncover new compounds in our Type 7 licensed laboratory, we are developing products that give our customers a competitive edge in their product offering. Through superior technology and data that better educates consumers on the intended flavor and effects of our terpenes, brands can now deliver a targeted, repeatable and consistent product experience to their end user. KushCo has been instrumental in bolstering our reputation and reach within the legal cannabis and CBD industries as a trusted referral partner. With this renewed partnership, we look forward to offering more customers - and by extension more end consumers - a taste of our unique terpene innovations."

About KushCo Holdings
KushCo Holdings, Inc. (OTCQX:KSHB) is a premier provider of ancillary products and services to the legal cannabis and CBD industries. KushCo Holdings' subsidiaries and brands provide product quality, exceptional customer service, compliance knowledge and a local presence in serving its diverse customer base, which consists of leading multi-state-operators (MSOs), licensed producers (LPs), and brands.

Founded in 2010, KushCo Holdings has now sold more than 1 billion units to growers, brand owners, processors and producers across North America, South America, and Europe, specializing in child-resistant compatible and fully customizable packaging, exclusive vape hardware and technology, and complementary solvents and natural products.

As a pioneer in the industry, KushCo continues to work to create a positive impact on the environment, society, and community through CSR and ESG initiatives, such as: offering sustainable and compostable packaging; donating PPE supplies to healthcare workers on the frontline fighting the COVID-19 pandemic; partnering with organizations such as Mission Green to offer social equity programs for industry inclusion; being one of the first in the industry to award paid time-off for all employees on November 3, 2020 ("Election Day"); and working to incorporate industry-leading corporate governance practices and a more diverse board makeup.

For more information on KushCo's commitment to CSR and ESG initiatives, please visit the Company's #KushCares page at www.kushco.com/kushcares.

KushCo has been featured in media nationwide, including CNBC, Fox News, Yahoo Finance, Cheddar, Los Angeles Times, TheStreet.com, and Entrepreneur, Inc Magazine. For more information, visit www.kushco.com or call (888) 920-5874.

About ABSTRAX
Leveraging its proven background in cannabis research, ABSTRAX is a leader in the research, development, and production of botanically-derived and cannabis-inspired terpenes that create unforgettable sensorial experiences. Headquartered in California, the company owns and operates a state-of-the-art type 7 licensed research and manufacturing lab where its award-winning product developers and scientists leverage the most advanced strain analysis technology to extract and study aroma compounds via three-dimensional analysis, allowing for each and every compound within a plant to be named and studied. The company has partnered with many of the best cultivators in the industry to study their cannabis profiles and create the world's most advanced terpene formulations.

As a result of its efforts, ABSTRAX offers one of the largest terpene catalogue of the most popular strains - botanically-derived terpene blends and isolates native to cannabis. These ingredients, also known as functional flavors and aromas, are used in vapes, concentrates, edibles, beer, essential oils, fragrances, cosmetics, topicals, tinctures, alcohol, food and beverage, personal care, and more. The company works with internationally recognized brands and provides unparalleled cannabis research, innovation, and custom formulations to create products that engage and thrill consumers.

ABSTRAX also devotes significant resources to developing the highest terpene standards and best practices in the industry. The company has developed a robust quality management system including gas chromatography analysis and molecular distillation of natural ingredients to achieve the some of the highest purity standards. For more information, visit abstraxTech.com.

KushCo Holdings Contact
Investor Contact:
Najim Mostamand, CFA
Director of Investor Relations
714-539-7653
ir@kushco.com

ABSTRAX Contact:
Media Contact:
Stacey Jones
La Voz Marketing
213-925-8177
stacey@lavozmarketing.com

SOURCE: KushCo Holdings, Inc.

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FAQ

What is the renewed partnership between KushCo and ABSTRAX about?

KushCo's renewed partnership with ABSTRAX focuses on providing customers with exclusive access to discounted products and custom terpene profiles.

How will the partnership with ABSTRAX benefit KushCo customers?

KushCo customers will benefit from discounted pricing, early access to innovative products, and customized terpene offerings.

What are the financial implications of the partnership for KushCo?

KushCo will earn a 100% gross margin on any referrals made to ABSTRAX, improving its revenue opportunities.

Why won't KushCo sell or distribute terpenes?

KushCo will not engage in the sale or distribution of terpenes due to ongoing regulatory uncertainties.

When was the partnership with ABSTRAX renewed?

The partnership between KushCo and ABSTRAX was renewed on February 17, 2021.