Business-to-business company KushCo Holdings, Inc. (OTCQX: KSHB) is seizing on a new opportunity this week to increase legitimacy and combat lingering problems with the unlicensed cannabis industry as more states take up legalization measures. 

KushCo just struck a distribution deal with supply chain authentication company De La Rue. Through that partnership, KushCo will now offer anti-counterfeit security labels custom branded to client specifications. 

Those labels for cannabis products will include IDs for digital verification to track inventory and sales data, enhance packaging options, and ensure product authenticity. 

The end goal of offering these labels is to protect licensed cannabis company reputations and guard against fraudulent products meant to look legitimate. Discussing the new agreement with De La Rue, KusCho CEO Nick Kovacevich commented: 

It is our responsibility to build consumer trust in addition to empowering governments and brands. Counterfeit products undermine the 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.

Potential health issues have become a minefield for the industry in the last month as unlicensed THC vape products are frequently cited in reports of seven individuals who died in the U.S. from an apparently vape-related lung disease.  

While the root cause of that issue has not yet been determined, the U.S. federal government has already promised a crackdown on non-tobacco flavoured vape products in the near future.  

In other recent company news, KushCo’s Chief Revenue Officer Jason Vegotsky spoke at the MJBizCon International Conference earlier this month to discuss mergers and integrations in the industry.  

The company additionally closed on a $50 million credit facility from private firm Monroe Capital LLC back in August to fuel further growth both on the cannabis and CBD sides of operations. On that latter front, the company launched a retail services division this summer to assist companies entering the CBD market at scale. 

KushCo’s stock price has continued to decline over the last month, trading at $3.00 a share today, which is down from $4.04 this same time last month and significantly dropped from the $7.03 price in early January.