As demand for legal cannabis continues to grow exponentially, Greenlane Holdings Inc. (NASDAQ:GNLN) and KushCo Holdings Inc. (OTCQX:KSHB) have completed a merger that will vastly affect the ancillary cannabis marketplace by creating a new combined market leader.
The new company, which operates as Greenlane, brings together two of the cannabis industry’s leading pioneers with more than 26 years of combined operating history.
“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,” Greenlane CEO Nick Kovacevich said in a recent press release. “The substantial progress both companies have made in our combined 26 years of history positions us at the forefront of a rapidly evolving landscape.”
The deal allows the two companies to offer its combined product lines to a diverse and robust group of customers, including leading multi-state operators, licensed producers, brands, and top smoke shops in the U.S., along with millions of consumers worldwide.
The merger is expected to deliver many synergies and financial benefits for Greenlane, including:
- The establishment of Greenlane as a leading ancillary cannabis company delivering increased value to customers across its supply chain.
- An expected $15 million to $20 million of annual run-rate cost synergies within 24 months, which includes reduced operating expenses and an optimized nationwide distribution network.
- A robust suite of proprietary brands and exclusive 3rd-party brand offerings, which enables significant cross-selling between the two companies’ respective customer bases. Greenlane can now offer its customers a highly diversified and complementary product offering.
- A unique value proposition driving innovation as well as premier product design and development. Greenlane now has more than 200 intellectual property articles and will continue to build an innovative pipeline across a broad category of product offerings, supported by its professional product development and design team.
Greenlane’s Class A common stock will continue to trade on the Nasdaq Global Market under the ticker symbol GNLN. KushCo’s common stock ceased trading on the OTCQX effective as of the close of trading on Aug. 31.
For more information, go to www.gnln.com.