Greenlane Holdings, Inc. (“Greenlane” or “the Company”) (Nasdaq: GNLN) and KushCo Holdings, Inc. (”KushCo”) (OTCQX: KSHB) today announced the completion of their previously announced merger (“the Transaction”). The combined company, operating as Greenlane, brings together two of the pioneering cannabis ancillary product and service companies with more than 26 years of operating history to create an undisputed leader in the cannabis industry.
The Company’s Class A common stock (“Greenlane Shares”) will continue to trade on the Nasdaq Global Market under the ticker symbol “GNLN”. Each KushCo stockholder is entitled to receive 0.3016 of a Greenlane Share for each share of KushCo common stock held on August 31, 2021, the effective date of the Transaction. Holders of Greenlane Shares prior to the completion of the Transaction will continue to hold their Greenlane Shares with no adjustment as a result of the Transaction.
KushCo’s common stock has ceased trading on the OTCQX effective as of the close of trading on August 31, 2021.
Management Commentary
“I am proud to announce the successful closing of our transformative merger and would like to thank our combined teams for all of their hard work over the past few months,” said Nick Kovacevich, Chief Executive Officer of Greenlane. “As we turn the page to an exciting new chapter as Greenlane, I am more confident than ever in our ability to build the industry’s leading ancillary cannabis company by leveraging our size, scale, strategy, and talent to take advantage of the significant growth opportunities that lie ahead. The substantial progress both companies have made in our combined 26 years of history positions us at the forefront of a rapidly evolving landscape. I look forward to the road ahead with our new colleagues and am excited to report our continued progress in the months and years to come.”
“I am thrilled by the strong support our customers, employees, and shareholders have shown for this transformative merger and excited to welcome Nick and our new colleagues to the Greenlane team,” said Aaron LoCascio, Co-Founder and President of Greenlane. “I am convinced that together we will continue to drive innovation and build the industry’s leading ancillary cannabis company that is incredibly well positioned to provide both exceptional service to our customers and create long term value for our shareholders.”
Greenlane expects the Transaction to yield a number of important strategic synergies and financial benefits allowing for enhanced scale and rapid growth:
- Establishes the leading ancillary cannabis company delivering more value to customers across the supply chain: Greenlane serves a premier group of customers, including many of the leading multi-state-operators and licensed producers, the top smoke shops in the United States, and millions of consumers worldwide.
- Optimized platform with significant synergies: The Company expects to generate approximately $15 million to $20 million of annual run-rate cost synergies within 24 months from the closing of the Transaction. These synergies are expected to result from the economies of scale that will be realized following the Transaction, an optimized nationwide distribution network, and reduced operating expenses.
- Strengthens best-in-class proprietary brands and exclusive third-party brand offerings: As the leading supplier of premier consumer brands and products, Greenlane offers its customers a diversified and highly complementary product offering.
- Robust organic growth through cross-selling opportunities: the Company has the wide-ranging breadth of products and services needed to support the entire global cannabis industry.
- Unique ability to drive industry innovation and premier product design and development: With over 200 articles of Intellectual Property, the Company will cultivate a strong innovation pipeline across a broad category of product offerings, supported by an industry-leading and experienced product development and design team.
Effective on closing, Greenlane’s senior management team and Board of Directors are as follows:
Senior management team
Nick Kovacevich, Chief Executive Officer
Bill Mote, Chief Financial Officer
Aaron LoCascio, President
Adam Schoenfeld, Chief Strategy Officer
Rodrigo de Oliveira, Chief Operating Officer
Rhiana Barr, Chief People Officer
Douglas Fischer, General Counsel
Michael Cellucci, President, CPG Sales
Andrew Goodman, SVP of Sales
Board of Directors
Jeff Uttz, Independent Director
Rich Taney, Independent Director
Dallas Imbimbo, Independent Director
Donald Hunter, Independent Director
Nick Kovacevich, Director
Aaron LoCascio, Director
Adam Schoenfeld, Director
Advisors
Canaccord Genuity Corp. served as financial advisor to the Special Committee of Greenlane’s board of directors. Potter Anderson & Corroon LLP acted as legal counsel to the Special Committee. Cowen acted as financial advisor to Greenlane, and Morrison & Foerster LLP acted as its legal counsel. Jefferies LLC acted as exclusive financial advisor to KushCo and Reed Smith LLP acted as its legal counsel.
About Greenlane Holdings, Inc.
Greenlane Holdings, Inc. (Nasdaq: GNLN) is a global house of brands and one of the largest sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products to smoke shops, dispensaries, and specialty retail stores, as well as direct to consumer through its online e-commerce platforms, Vapor.com, Higherstandards.com, Aerospaced.com, Haringglass.com, Eycemolds.com, Canada.Vapor.com, Azarius.net, Vaposhop.com, and Puffitup.com. Founded in 2005, Greenlane serves more than 7,000 retail locations and has over 250 employees with operations in United States, Canada, and Europe. With a strong global footprint, Greenlane has been the partner of choice for many of the industry’s leading brands, who chose to leverage its strong distribution platform, unparalleled customer service, and highly efficient operations and logistics to accelerate their growth. Greenlane’s curated portfolio of owned brands includes EYCE, packaging innovator Pollen Gear™, VIBES™ rolling papers, Marley Natural™ Accessories; K.Haring Glass Collection, Aerospaced grinders, and Higher Standards which offers both an upscale product line as well as an innovative retail experiences with flagship stores located in Chelsea Market, New York and Malibu, California.
For additional information, please visit: https://gnln.com/.
