BOCA RATON, Florida, September. 1, 2021 - PRESS RELEASE - Greenlane Holdings, Inc. and KushCo Holdings, Inc. 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 Aug. 31, the transaction's effective date. Holders of Greenlane Shares before the transaction completion 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 Aug. 31.
"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, Greenlane chief executive officer. "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, Greenland co-founder and president. "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 several important strategic synergies and financial benefits, allowing for enhanced scale and rapid growth:
- Establishes a ancillary cannabis company delivering more value to customers across the supply chain: Greenlane serves a premier group of customers, including many 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 a supplier of 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 a product development and design team.