Greenlane Holdings Cannabis Co. To Raise $32M Ahead Of Closing Merger With KushCo Holdings

Author: Jelena Martinovic | August 09, 2021 11:12am

Greenlane Holdings, Inc. (NASDAQ:GNLN) is looking to raise $32 million through a registered direct offering of its shares, priced at the market under NASDAQ rules.

The Boca Raton, Florida-based company, agreed to sell institutional investors some $10.13 million shares of its stock and warrants to buy up to 6.07 million shares of stock at $3.16 per share. In addition, warrants have a price of $3.55 per share and are exercisable within the next five years.

A.G.P./Alliance Global Partners agreed to serve as sole placement agent for the transaction, which is expected to close on or about Wednesday, August 11.

Greenlane & KushCo Merger Deal

Meanwhile, Greenlane is expected to wrap up its months-long negotiations to merge with KushCo Holdings, Inc. (OTCQX:KSHB). Earlier this year, the two companies said that they were planning to create the leading ancillary cannabis company and house of brands.

As previously announced, the deal under which KushCo agreed to become a wholly-owned subsidiary of Greenlane is expected to close in the third quarter of 2021.

KushCo’s co-founder and CEO Nick Kovacevich will become CEO of the combined company

and Greenlane’s CFO Bill Mote will serve as CFO for the combined company.

Unanimously approved by the boards of directors of Greenlane and KushCo, the deal is now pending approval from shareholders of both companies. The vote is scheduled for August 26.

Once the merger is closed, KushCo shareholders will obtain roughly 0.2546 shares of Greenlane Class A common stock for each share of KushCo common stock held. In addition, Greenlane Class C shares will be transformed into Greenlane Class B shares on a 3-to-1 basis.

Greenlane Holdings’ shares were trading 5.50% lower at $2.92 per share at the time of writing Monday morning.

Photo: Courtesy of Tim Foster on Unsplash

Posted In: GNLN KSHB