In terms of vaping device manufacturers and parts providers, one of the more intriguing names to monitor is KushCo Holdings (NASDAQOTH:KSHB). KushCo makes a living in multiple areas of the ancillary market, including providing compliant packaging and branding solutions to over 5,000 growers worldwide. But the majority of its business has been derived from vaporizers, which is a business segment that should see tremendous growth to the north once Health Canada legalizes new derivative products (including vapes) later this year.
KushCo’s prized vaporizer segment has been a bit of a sour note in recent quarters due to the U.S.-China trade war. Tariffs on imported vape components have been eaten by KushCo, rather than passed along to consumers, thereby hurting margins. But the company recently made the decision to pass along any higher import expenses to consumers, which really shouldn’t be a problem given the tremendous demand for vaping devices in the U.S., and soon Canada.
Then there’s Greenlane Holdings (NASDAQ:GNLN), which is only one of the largest providers of vaporization products in North America. Greenlane provides an assortment of product categories to more than 11,000 retail outlets throughout North America, including customized packaging, papers and wraps, and even hemp cannabidiol products. But the company’s vaporizer products are likely to be the driving force behind Greenlane’s growth for the foreseeable future.
What may set Greenlane apart from its peers, and why it’s a must-know cannabis vape stock, is the company’s efforts to internally develop and acquire well-known vaporization brands, and then use those brands to build distribution networks. It’s been successful with this model in the early stages throughout the U.S., and it will look to build on its 103% net revenue growth in 2018 (for all products, not just vapes) when Canada launches new derivative options in the months that lie ahead.