Exhibit 4.1


 


DESCRIPTION OF SECURITIES


 


The summary of the general terms and provisions
of the capital stock of KushCo Holdings, Inc. (the “Company”) set forth below does not purport to be
complete and is subject to and qualified by reference to the relevant provisions of the Company’s Amended and Restated Articles
of Incorporation (as amended, the “Articles of Incorporation”), the Bylaws (“Bylaws,”
and together with the Articles of Incorporation, the “Charter Documents”), and the laws of the State
of Nevada. Copies of the Charter Documents have been filed with the Securities and Exchange Commission.


 


Capital Stock 


 


Our authorized capital stock consists of
265,000,000 shares of common stock, par value $0.001 per share (“Common Stock”), and 10,000,000 shares
of preferred stock, par value $0.001 per share (“Preferred Stock”).


 


Voting Rights


 


Each holder of Common Stock is entitled
to one vote for each share of Common Stock held on all matters submitted to a vote of the stockholders, including the election
of directors. Except as otherwise provided by law or our Charter Documents, all matters other than the election of directors submitted
to the stockholders at any meeting shall be decided by the vote of the holders of a majority of the stock having voting power present
in person or represented by proxy. Directors are elected by a plurality of the votes cast at the meeting. Our Charter Documents
do not provide for cumulative voting rights. Because of this, the holders of a majority of the shares of Common Stock entitled
to vote in any election of directors can elect all of the directors standing for election, if they should so choose.


 


Dividends


 


Subject to preferences that may be applicable
to any then outstanding Preferred Stock, the holders of our outstanding shares of Common Stock are entitled to receive dividends,
if any, as may be declared by our board of directors at any regular or special meeting. At present, we have no plans to issue dividends.


 


Liquidation  


 


In the event of our liquidation, dissolution
or winding up, holders of Common Stock will be entitled to share ratably in the net assets legally available for distribution to
stockholders after the payment of all of our debts and other liabilities, subject to the satisfaction of any liquidation preference
granted to the holders of any outstanding shares of Preferred Stock.


 


Other Rights and Preferences  


 


Holders of our Common Stock have no preemptive,
conversion or subscription rights, and there are no redemption or sinking fund provisions applicable to our Common Stock. The rights,
preferences and privileges of the holders of Common Stock are subject to, and may be adversely affected by, the rights of the holders
of shares of any series of our Preferred Stock that we may designate and issue in the future.


 


Anti-Takeover Effects of Nevada Law
and Our Charter Documents


 


Some provisions of Nevada law, our Charter
Documents contain provisions that could make the following transactions more difficult: an acquisition of us by means of a tender
offer; an acquisition of us by means of a proxy contest or otherwise; or the removal of our incumbent officers and directors.
It is possible that these provisions could make it more difficult to accomplish or could deter transactions that stockholders
may otherwise consider to be in their best interest or in our best interests, including transactions which provide for payment
of a premium over the market price for our shares.


 






     


     


    

 


These provisions, summarized below, are
intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage
persons seeking to acquire control of us to first negotiate with our board of directors. We believe that the benefits of the increased
protection of our potential ability to negotiate with the proponent of an unfriendly or unsolicited proposal to acquire or restructure
us outweigh the disadvantages of discouraging these proposals because negotiation of these proposals could result in an improvement
of their terms.


 


Undesignated Preferred Stock


 


The ability of our board of directors,
without action by the stockholders, to issue up to 10,000,000 shares of undesignated Preferred Stock with voting or other rights
or preferences as designated by our board of directors could impede the success of any attempt to change control of us. These and
other provisions may have the effect of deferring hostile takeovers or delaying changes in control or management of our company.


 


Stockholder Meetings


 


Our Bylaws provide that a special meeting
of stockholders may be called only by our president, the majority of the board of directors, or by the stockholders holding shares
in the aggregate entitled to cast not less than a majority of the votes at any such meeting.


 


Stockholder Action by Written Consent


 


Our Bylaws allow for any action which may
be taken at any annual or special meeting of the stockholders to be taken without a meeting and without prior notice, if a consent
in writing, setting forth the action so taken, is signed by the holders of outstanding shares having not less than the minimum
number of votes that would be necessary to authorize or take such action at a meeting at which all shares entitled to vote thereon
were present and voted.


 


Removal of Directors


 


Our Bylaws provide that any or all of our
directors may be removed without cause if such removal is approved by the affirmative vote of a majority of the outstanding shares
entitled to vote.


 


Stockholders Not Entitled to Cumulative
Voting


 


Our Articles of Incorporation does not
permit stockholders to cumulate their votes in the election of directors. Accordingly, the holders of a majority of the outstanding
shares of our Common Stock entitled to vote in any election of directors can elect all of the directors standing for election,
if they choose, other than any directors that holders of our Preferred Stock may be entitled to elect.


 


Nevada Business Combination Statutes


 


The “business combination”
provisions of Sections 78.411 to 78.444, inclusive, of the Nevada Revised Statutes generally prohibit a Nevada corporation with
at least 200 stockholders from engaging in various “combination” transactions with any interested stockholder for
a period of two years after the date of the transaction in which the person became an interested stockholder, unless the transaction
is approved by the board of directors prior to the date the interested stockholder obtained such status or the combination is
approved by the board of directors and thereafter is approved at a meeting of the stockholders by the affirmative vote of stockholders
representing at least 60% of the outstanding voting power held by disinterested stockholders, and extends beyond the expiration
of the two-year period, unless:


 


		•	the combination was approved by the board of directors
prior to the person becoming an interested stockholder or the transaction by which the person first became an interested stockholder
was approved by the board of directors before the person became an interested stockholder or the combination is later approved
by a majority of the voting power held by disinterested stockholders; or



  






     


     


    

 


		•	if the consideration to be paid by the interested
stockholder is at least equal to the highest of: (a) the highest price per share paid by the interested stockholder within the
two years immediately preceding the date of the announcement of the combination or in the transaction in which it became an interested
stockholder, whichever is higher, (b) the market value per share of Common Stock on the date of announcement of the combination
and the date the interested stockholder acquired the shares, whichever is higher, or (c) for holders of Preferred Stock, the highest
liquidation value of the Preferred Stock, if it is higher.



 


A “combination” is generally
defined to include mergers or consolidations or any sale, lease exchange, mortgage, pledge, transfer, or other disposition, in
one transaction or a series of transactions, with an “interested stockholder” having: (a) an aggregate market value
equal to 5% or more of the aggregate market value of the assets of the corporation, (b) an aggregate market value equal to 5% or
more of the aggregate market value of all outstanding shares of the corporation, (c) 10% or more of the earning power or net income
of the corporation, and (d) certain other transactions with an interested stockholder or an affiliate or associate of an interested
stockholder.


 


In general, an “interested stockholder”
is a person who, together with affiliates and associates, owns (or within two years, did own) 10% or more of a corporation’s
voting stock. The statute could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may
discourage attempts to acquire us even though such a transaction may offer our stockholders the opportunity to sell their stock
at a price above the prevailing market price.


 


Nevada Control Share Acquisition
Statutes


 


The “control share” provisions
of Sections 78.378 to 78.3793, inclusive, of the Nevada Revised Statutes apply to “issuing corporations” that are Nevada
corporations with at least 200 stockholders, including at least 100 stockholders of record who are Nevada residents, and that conduct
business directly or indirectly in Nevada. The control share statute prohibits an acquirer, under certain circumstances, from voting
its shares of a target corporation’s stock after crossing certain ownership threshold percentages, unless the acquirer obtains
approval of the target corporation’s disinterested stockholders. The statute specifies three thresholds: one-fifth or more
but less than one-third, one-third but less than a majority, and a majority or more, of the outstanding voting power. Generally,
once an acquirer crosses one of the above thresholds, those shares in an offer or acquisition and acquired within 90 days thereof
become “control shares” and such control shares are deprived of the right to vote until disinterested stockholders
restore the right. These provisions also provide that if control shares are accorded full voting rights and the acquiring person
has acquired a majority or more of all voting power, all other stockholders who do not vote in favor of authorizing voting rights
to the control shares are entitled to demand payment for the fair value of their shares in accordance with statutory procedures
established for dissenters’ rights.


  


A corporation may elect to not be governed
by, or “opt out” of, the control share provisions by making an election in its articles of incorporation or Bylaws,
provided that the opt-out election must be in place on the 10th day following the date an acquiring person has acquired a controlling
interest, that is, crossing any of the three thresholds described above. We have not opted out of the control share statutes, and
will be subject to these statutes if we are an “issuing corporation” as defined in such statutes.


 


The effect of the Nevada control share
statutes is that the acquiring person, and those acting in association with the acquiring person, will obtain only such voting
rights in the control shares as are conferred by a resolution of the stockholders at an annual or special meeting. The Nevada control
share law, if applicable, could have the effect of discouraging takeovers of the Company.


 


Amendment of Charter Provisions


 


The amendment of any of the above provisions
would require approval by holders of at least a majority of the total voting power of all of our outstanding voting stock.


 


The provisions of Nevada law, our Charter
Documents could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they may also
inhibit temporary fluctuations in the market price of our Common Stock that often result from actual or rumored hostile takeover
attempts. These provisions may also have the effect of preventing changes in the composition of our board and management. It is
possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to
be in their best interests.