With the vaping crisis spreading, one company is taking action…
Over the past few weeks, I’ve been providing updates about the vaping crisis.
In my first report, I talked about how there were possibly 150 cases across 16 states, with 30 of those occurring in Wisconsin.
Within a matter of weeks, there were more than 450 cases in 33 states. Unfortunately, five people had died as of September 11. Because of the news, I told members of Cannabis IPO Insider we were putting one of the companies in the model portfolio on hold.
Now, I know regulators can often get in the way of the cannabis industry. In places like California, they have placed too many taxes on legitimate operators, which in turn has helped the black market thrive.
But regulations can be good.
If a company is running a legitimate business, they want regulations that are done right. The right laws run illicit operators out of town, allowing those playing by the rules to thrive.
KushCo’s Exclusive Agreement
On September 16, KushCo announced an exclusive Agreement with De La Rue.
De La Rue is a trusted partner of government, central banks, and commercial organizations. It provides products and services for anti-counterfeiting and authentication solutions.
It is about as mainstream as a company can get – it prints the banknotes for over 60% of the world’s governments.
In its new venture in the cannabis industry, De La Rue will offer custom branded anti-counterfeit security labels. KushCo will now also provide customers with enhanced packaging, unique serialization, e-verification, label tracking, and data capturing capabilities.
“Counterfeit products undermine the legitimate cannabis industry by hurting sales, cheating governments out of tax revenue, and eroding consumer confidence while putting their health at risk. KushCo wants to provide the tools for our clients to have greater transparency and accountability,” KushCo CEO Nick Kovacevich said in a statement.
As CBD grows in popularity, so do the number of legitimate and illegitimate CBD companies on the market. That’s why the NICI team has identified two breakout CBD companies that are worth looking in to. Learn more now.
This won’t be a huge business in its own right, but it will increase the “stickiness” of Kush customers as it goes after larger multi-state operators (MSOs) and the big producers in Canada.
The deal also gives a nod to regulators.
You can expect to see these anti-counterfeiting solutions (primarily hologram stickers like what you see on NBA and MLB authorized merchandise) become required over time.
So when someone goes to buy a vaporizer or cartridge from a dispensary down the road, they will know they are getting an authentic product.
I’ll have another report out to you shortly about other companies that are looking to battle against the vaping epidemic that hit our country.
The exact agent causing the illness has yet to be uncovered with certainty, but we can be fairly certain that it is something that illicit vape manufacturers are introducing into their products – not something that comes from legitimate vaping companies.
Executive Director, National Institute for Cannabis Investors
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9 responses to “KushCo Makes a Strategic Move During the Vaping Crisis”
September 20 2019