Greenlane Holdings Stock Price, News & Analysis

Greenlane Holdings (NASDAQ:GNLN) announced the closure of a $15 million asset-based loan to enhance its working capital and support strategic initiatives. The loan, set for a term of three years, aims to aid Greenlane in reducing costs and accelerating profitability without diluting shareholder equity. CEO Nick Kovacevich highlighted the company's progress towards its strategic shift and its unique position within the cannabis ecosystem. Greenlane serves over 8,000 retail locations, showcasing a strong brand portfolio in the cannabis accessory market.

Greenlane Holdings (Nasdaq:GNLN) announced a one-for-20 reverse stock split to take effect on August 9, 2022. This move aims to comply with Nasdaq's minimum bid price requirements, reducing the number of Class A shares from approximately 137.5 million to about 6.9 million and Class B shares from 5.2 million to 260,000. The stock will begin trading post-split on August 10, 2022, under the existing symbol GNLN. The split will not change any shareholder's percentage interest, though fractional shares will be paid in cash.

Greenlane Holdings has sold its stake in VIBES Holdings LLC for $5.3 million in cash, marking a strategic move to enhance profitability. The sale values VIBES at an enterprise value of approximately 1x its trailing 12-month revenue, indicating that Greenlane's public market valuation may be undervalued. Greenlane retains distribution rights for VIBES products and will continue as a strategic partner. CEO Nick Kovacevich expressed optimism about the valuation disparity and aims to improve the company's balance sheet through this transaction.

Greenlane Holdings (NASDAQ:GNLN) announced a registered direct offering to sell 21,600,000 shares of common stock and warrants at $0.25 per share, aiming to raise approximately $5.4 million.

The warrants are valid for five and a half years and become exercisable six months post-issuance. The offering is scheduled to close around June 29, 2022, pending customary conditions. Proceeds will be used for general corporate purposes.

Greenlane Holdings (NASDAQ:GNLN) has commenced shipping regulated vaporizer products to wholesale clients utilizing a business exemption to the PAC Act granted by the USPS. This exemption allows for reduced shipping costs and improved fulfillment times, enhancing customer experience. CEO Nick Kovacevich highlights the strategic advantage this brings, enabling Greenlane to accelerate growth in the vaporizer market and offer logistics capabilities to other businesses affected by the PAC Act. The company aims to strengthen its compliance and safety leadership in the cannabis accessories sector.

Greenlane Holdings (NASDAQ:GNLN) announces its strategy to generate over $30 million in non-dilutive liquidity. Key components include securing an asset-based loan, selling its headquarters in Boca Raton, and disposing of non-core inventory. The company is negotiating a loan expected to yield more than $10 million in liquidity and is actively marketing its headquarters, with hopes of generating an additional $10 million. The sale of excess and obsolete inventory aims to contribute another $10 million. These efforts are seen as crucial in a challenging market environment.

Greenlane Holdings (NASDAQ:GNLN) reported a 37% revenue increase to $46.5 million in Q1 2022, driven largely by the KushCo merger. However, excluding KushCo's impact, revenue dropped 47%. The company aims for positive adjusted EBITDA by Q3 2022, aided by a reduction in force expected to save $8 million annually. Greenlane Brand sales fell 34% due to ERP system issues, impacting order fulfillment. Total cash stands at $5.9 million, with working capital decreasing to $41.7 million compared to the end of 2021.

Greenlane Holdings (NASDAQ:GNLN) has partnered with Universal Distribution LATAM to distribute its Greenlane Brands in Latin America, specifically in Chile, Uruguay, and Argentina. The agreement grants exclusive and non-exclusive rights for promotion and sales, targeting sales of at least $1.5 million in the first year, $1.9 million in the second year, and $2.4 million in the third year. This asset-light strategy allows Greenlane to expand without heavy capital investment, leveraging local expertise.

Greenlane Holdings (NASDAQ: GNLN) announces a conference call on May 17, 2022, at 8:30 a.m. Eastern Time to discuss its financial and operational results for Q1 2022, which ended on March 31, 2022. The call will include a live presentation accessible via their Financial Results page. Interested parties can join by phone or online. A replay will be available until May 31, 2022. Greenlane is a leading global seller of cannabis accessories and products, serving over 8,500 retail locations.