Greenlane Announces Closing of $6.5 Million Private Placement Priced At-the-Market Under Nasdaq Rules
Greenlane Holdings, Inc. (NASDAQ:GNLN), a leading global seller of premium cannabis accessories, has closed a $6.5 million private placement with a single institutional investor. The company issued 2,363,637 units and pre-funded units, each consisting of one share of common stock (or pre-funded warrant) and two common warrants. The common warrants are exercisable at $2.50 per share and will expire after 5 years. Greenlane plans to use the net proceeds for working capital and general corporate purposes. Aegis Capital Corp. acted as the Exclusive Placement Agent, while Sichenzia Ross Ference Carmel LLP served as counsel to Greenlane. The securities are being sold in a private placement exempt from registration requirements of the Securities Act of 1933.
Greenlane Holdings, Inc. (NASDAQ:GNLN), un importante venditore globale di accessori per cannabis di alta qualità, ha concluso una raccolta fondi privata di 6,5 milioni di dollari con un singolo investitore istituzionale. La società ha emesso 2.363.637 unità e unità pre-finanziate, ciascuna composta da un'azione ordinaria (o warrant pre-finanziato) e due warrant comuni. I warrant comuni sono esercitabili a 2,50 dollari per azione e scadranno dopo 5 anni. Greenlane prevede di utilizzare i proventi netti per capitale circolante e scopi aziendali generali. Aegis Capital Corp. ha agito come Agente di Collocamento Esclusivo, mentre Sichenzia Ross Ference Carmel LLP ha servito come consulente per Greenlane. I titoli sono venduti in una raccolta fondi privata esente dai requisiti di registrazione della Securities Act del 1933.
Greenlane Holdings, Inc. (NASDAQ:GNLN), un vendedor global líder de accesorios de cannabis premium, ha cerrado una colocación privada de 6.5 millones de dólares con un único inversor institucional. La compañía emitió 2,363,637 unidades y unidades prefinanciadas, cada una consistente en una acción ordinaria (o warrant prefinanciado) y dos warrants comunes. Los warrants comunes son ejercitables a 2.50 dólares por acción y vencerán después de 5 años. Greenlane planea usar los ingresos netos para capital de trabajo y propósitos corporativos generales. Aegis Capital Corp. actuó como Agente de Colocación Exclusivo, mientras que Sichenzia Ross Ference Carmel LLP se desempeñó como asesor de Greenlane. Los valores se venden en una colocación privada exenta de los requisitos de registro de la Ley de Valores de 1933.
그린레인 홀딩스, 주식 코드 (NASDAQ:GNLN)는 프리미엄 대마초 액세서리의 글로벌 선두 판매업체로 650만 달러 규모의 사모 펀드를 완료했습니다 단일 기관 투자자와 함께. 이 회사는 2,363,637 유닛과 사전에 자금이 제공된 유닛을 발행했으며, 각각 하나의 보통주(또는 사전 자금 지원 워런트)와 두 개의 일반 워런트로 구성됩니다. 일반 워런트는 주당 2.50달러에 행사 가능하며 5년 후 만료됩니다. 그린레인은 순수익을 운영 자본 및 일반 기업 용도에 사용할 계획입니다. 에이기스 캐피탈 코프가 독점 배치 대행사로 활동했으며, 시첸지아 로스 페렌스 카멜 LLP는 그린레인의 법률 자문 역할을 했습니다. 증권은 1933년 증권법의 등록 요건에서 면제되는 사모 형태로 판매되고 있습니다.
Greenlane Holdings, Inc. (NASDAQ:GNLN), un leader mondial de la vente d'accessoires de cannabis premium, a achevé un placement privé de 6,5 millions de dollars avec un seul investisseur institutionnel. La société a émis 2 363 637 unités et des unités préfinancées, chaque unité étant constituée d'une action ordinaire (ou d'un warrant préfinancé) et de deux bons de souscription ordinaires. Les bons de souscription ordinaires sont exerçables au prix de 2,50 dollars par action et expireront après 5 ans. Greenlane prévoit d'utiliser le produit net à des fins de fonds de roulement et d'objectifs d'entreprise généraux. Aegis Capital Corp. a agi en tant qu'agent de placement exclusif, tandis que Sichenzia Ross Ference Carmel LLP a été le conseiller de Greenlane. Les titres sont vendus dans le cadre d'un placement privé exempt des exigences d'enregistrement de la loi sur les valeurs mobilières de 1933.
Greenlane Holdings, Inc. (NASDAQ:GNLN), ein führender globaler Verkäufer von Premium-Cannabis-Zubehör, hat eine Privatplatzierung in Höhe von 6,5 Millionen Dollar abgeschlossen mit einem einzelnen institutionellen Investor. Das Unternehmen gab 2.363.637 Einheiten und vorfinanzierte Einheiten aus, die jeweils aus einer Stammaktie (oder einem vorfinanzierten Warrant) und zwei normalen Warrants bestehen. Die normalen Warrants sind zum Preis von 2,50 Dollar pro Aktie ausübbar und verfallen nach 5 Jahren. Greenlane plant, die Nettomittel für Betriebsvermögen und allgemeine Unternehmenszwecke zu verwenden. Aegis Capital Corp. fungierte als exklusiver Platzierungsagent, während Sichenzia Ross Ference Carmel LLP als Rechtsberater von Greenlane tätig war. Die Wertpapiere werden in einer Privatplatzierung verkauft, die von den Registrierungsanforderungen des Securities Act von 1933 befreit ist.
- Secured $6.5 million in funding through private placement
- Strengthened financial position for working capital and corporate purposes
- Attracted investment from a single institutional investor
- Potential dilution of existing shareholders due to issuance of new shares and warrants
- Warrants exercisable at $2.50 per share, which may impact future stock price
Insights
Greenlane's $6.5 million private placement provides a important cash infusion, albeit at the cost of significant dilution. The issuance of 2,363,637 units at
The private placement's structure raises several legal considerations. By opting for a private placement under Regulation D, Greenlane avoids the more rigorous disclosure requirements of a public offering. However, the company has committed to file registration statements for resale, which will eventually provide public disclosure. The use of pre-funded warrants is a creative mechanism to navigate around Nasdaq's minimum price requirements. The registration rights agreement with the investor is a key element, potentially accelerating the timeline for public resale. Investors should be aware that until the SEC declares the registration statement effective, these securities remain restricted. The company's careful wording about the use of proceeds ("working capital and general corporate purposes") provides flexibility but transparency.
This financing move by Greenlane reflects broader trends in the cannabis accessories sector. The industry faces headwinds from regulatory uncertainties and market saturation, making traditional financing challenging. The at-the-market pricing and warrant structure suggest investor caution, likely due to sector-wide pressures. Greenlane's ability to secure this funding, albeit on less-than-ideal terms, indicates some investor confidence in its market position. However, the dilutive nature of the deal may signal a lack of more attractive financing options. This transaction could trigger a reassessment of valuations across the cannabis accessories space, potentially impacting peer companies. Investors should watch for similar deals in the sector, as they may indicate a shift in how cannabis-adjacent businesses access capital in the current market environment.
BOCA RATON, FL / ACCESSWIRE / August 13, 2024 / Greenlane Holdings, Inc. ("Greenlane" or the "Company") (NASDAQ:GNLN), one of the premier global sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today announced the closing of a private placement with a single institutional investor for aggregate gross cash proceeds of
In connection with the private placement, the Company issued an aggregate of 2,363,637 units and pre-funded units. The pre-funded units will be sold at the same purchase price as the units, less the pre-funded warrant exercise price of
Aegis Capital Corp. acted as the Exclusive Placement Agent for the private placement. Sichenzia Ross Ference Carmel LLP served as counsel to the Company for the private placement. Kaufman & Canoles, P.C served as counsel to Aegis Capital Corp. for the private placement.
The securities described above are being sold in a private placement exempt from the registration requirements of the Securities Act of 1933, as amended (the "Act"), and have not been registered under the Act, or applicable state securities laws. Accordingly, the securities may not be offered or sold in the United States except pursuant to an effective registration statement or an applicable exemption from the registration requirements of the Act and such applicable state securities laws. Pursuant to a registration rights agreement with the investor, the Company has agreed to file one or more registration statements with the Securities and Exchange Commission (the "SEC") covering the resale of the shares of common stock sold in the private placement and the shares of common stock issuable upon exercise of the pre-funded warrants and the warrants sold in the private placement.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Greenlane Holdings, Inc.
Founded in 2005, Greenlane is a premier global platform for the development and distribution of premium smoking accessories, vape devices, and lifestyle products to thousands of producers, processors, specialty retailers, smoke shops, convenience stores, and retail consumers. We operate as a powerful family of brands, third-party brand accelerator, and an omnichannel distribution platform.
We proudly offer our own diverse brand portfolio and our exclusively licensed Marley Natural and K.Haring branded products. We also offer a carefully curated set of third-party products through our direct sales channels and our proprietary, owned and operated e-commerce platforms which include Vapor.com, PuffItUp.com, HigherStandards.com, Wholesale.Greenlane.com and MarleyNaturalShop.com.
For additional information, please visit: https://investor.gnln.com. For additional information, please visit: https://gnln.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 concerning Greenlane and other matters. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements. In some cases, you can identify forward-looking statements by terms such as "may," "will," "should," "expects," "plans," "anticipates," "could," "intends," "targets," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these terms or other similar expressions. The forward-looking statements in this press release are only predictions. Greenlane has based these forward-looking statements largely on its current expectations and projections about future events and financial trends that it believes may affect its business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. You should carefully consider the risks and uncertainties that affect our business, including those described in our filings with the Securities and Exchange Commission ("SEC"), including under the caption "Risk Factors" in Greenlane's Annual Report on Form 10-K filed for the year ended December 31, 2023 and the Company's other filings with the SEC, which can be obtained on the SEC website at www.sec.gov. These forward-looking statements speak only as of the date of this communication. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events or otherwise. You are advised, however, to consult any further disclosures we make on related subjects in our public announcements and filings with the SEC.
Investor Contact:
or
TraDigital IR
Kevin McGrath
+1-646-418-7002
kevin@tradigitalir.com
SOURCE: Greenlane Holdings, Inc.
View the original press release on accesswire.com
FAQ
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