Kush Bottles, Inc. (OTC:KSHB), is a manufacturer and marketer of packaging, supplies, vaporizers, accessories, branding solutions and most recently terpenes for the legal marijuana industry. Today, Kush Bottles announced the appointment of industry veteran Jim McCormick as CFO, effective August 1, 2017. Kush Bottles’ previous CFO, Chris Martin, will consult for Kush Bottles for roughly one quarter to ensure a smooth CFO transition period.
Related: Kush Bottles Expands to Alaska
This is significant for existing and prospective shareholders of Kush Bottles for a few reasons:
The experience McCormick brings to KSHB
What McCormick's tasked with as CFO of KSHB
How KSHB is compensating McCormick
Jim McCormick's Previous Experience
Jim McCormick has recently served as a management consultant where he led business development initiatives in the California cannabis sector. Prior to this role, he was Chief Financial Officer at Electronic Cigarettes Group International. Previously, he was also Senior Vice President and CFO, Corporate Services Division at Sodexo. McCormick spent the majority of his career in British American Tobacco where he held multiple general management and CFO roles internationally over his sixteen year tenure with the firm.
Nick Kovacevich, Co-Founder & CEO, Kush Bottles, commented, “I am pleased to welcome Jim to the Kush Bottles team. Jim is a highly successful senior leader with extensive CFO experience at both start-ups and global companies, complemented by an entrepreneurial spirit. His deep cross-functional understanding of developing and executing financial strategies is expected to help drive sustainable revenue and earnings performance at Kush Bottles. Furthermore, his lobbying experience and network from his time working in both the cannabis and tobacco sectors will be useful assets to the Company as we navigate the complexities of the cannabis industry.”
Jim McCormick's Tasks as CFO of Kush Bottles
As detailed above, McCormick has extensive CFO experience and has demonstrated financial and strategic leadership in his previous roles in the cannabis and tobacco industries. In his role as Chief Financial Officer, Jim McCormick will lead Kush Bottles’ financial operations.
Related: Breakdown - Kush Bottles Q3 Financial Results
McCormick will also be responsible for managing liquidity, balance sheet risk, and capital market transactions to ensure Kush Bottles remains well positioned to capitalize on growth opportunities. He will report directly to Nick Kovacevich, co-founder and CEO.
Jim McCormick's Compensation Package
In consideration for McCormick's services as CFO, he'll be paid an annual salary of $150,000, payable in accordance with the standard payroll practices of Kush Bottles. Furthermore, for each full year of employment McCormick completes with Kush Bottles, he'll have the opportunity to earn an annual bonus of up to $50,000, based on achievement of annual target performance goals, as established by Kush Bottles' Board of Directors or Chief Executive Officer, in their sole and absolute discretion.
Related: What You Need to Know About Kush Bottles New Patent
On top of the cash compensation detailed above, McCormick will also receive up to $18,000 of reimbursement for relocation related expenses. If McCormick quits or voluntarily terminates his employment with Kush Bottles or are terminated for “Cause” prior to one year from his hiring date, he'll be required to reimburse Kush Bottles for all relocation expenses.
Related: Kush Bottles Opens Terpene Formulation Lab
As for stock-based compensation, subject to Kush Bottles' Board of Directors’ approval, McCormick will be granted a stock option to purchase 600,000 shares of KSHB common stock. The option will vest in accordance with the following three-year vesting schedule: 1/3 of the option shares will vest one year of employment and the remaining 2/3 of the option shares will vest in equal monthly installments over the remaining two years.
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