Greenlane Holdings, Inc. (NASDAQ:GNLN) and KushCo Holdings, Inc. (OTCQX:KSHB) confirmed Wednesday that it had completed its previously announced merger. 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 will continue to trade on the Nasdaq Global Market under the ticker symbol “GNLN”, while KushCo’s common stock has ceased trading on the OTCQX effective as of the close of trading on August 31, 2021.
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, which was 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.
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.
Why it matters
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 expects to generate approximately $15 million to $20 million of annual run-rate cost synergies within 24 months from the closing of the Transaction.
- Strengthens proprietary brands and exclusive third-party brand offerings.
- Robust organic growth through cross-selling opportunities.
“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,” Nick Kovacevich, CEO of Greenlane stated. “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. “
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Greenlane shares closed Tuesday market session 2.68% lower at $2.54 per share.