Greenlane Announces Exclusive Distribution Agreement with Safety Strips Tech Corp Fentanyl, Xylazine and Drink Spike Detection Test Strips

Rhea-AI Summary

Greenlane Holdings (NASDAQ:GNLN) has secured an exclusive multi-year distribution agreement with Safety Strips Tech Corp to distribute fentanyl, xylazine and drink spike detection test strips in the U.S. The portfolio includes a low-cost test strip for detecting dangerous adulterants in substances. The test strips are available through Greenlane's online retail platforms and wholesale portal.

The ISO 13485 validated product can detect various synthetic opioids through a simple water-mixing process, providing results in approximately five minutes. This strategic move aligns with increasing customer demand for affordable test strip options amid the ongoing opioid crisis.

Positive

• Secured exclusive multi-year distribution agreement for test strips
• High margin product addition to enhance revenue potential
• Favorable inventory terms included in the agreement
• Multiple distribution channels already established for immediate sales

Negative

• None.

Insights

Market Research Analyst

This exclusive distribution agreement represents a strategic expansion into a high-margin, high-demand product category. The test strips market presents significant revenue potential due to several factors:

• Growing opioid crisis creating sustained demand
• Multiple distribution channels including retail, wholesale and potential government/university contracts
• Exclusive multi-year agreement providing competitive advantage

The ISO 13485 validation adds credibility and may help secure institutional contracts. The favorable inventory terms will help maintain healthy margins while the company's existing distribution infrastructure can support efficient scaling. However, investors should note that while this diversification is promising, the company's core cannabis accessories business still faces challenges in a competitive market.

• Portfolio includes Safety Strips Tech Corp.'s low-cost test strip that provides an affordable, reliable way for people to test substances for two of the dangerous adulterants that are exacerbating the growing opioid epidemic

• Greenlane to benefit from favorable inventory terms while leveraging its strong distribution, operations, marketing and sales teams to support the brand

• Addition of high margin test strips enhances the Company's portfolio of product offerings and revenue potential

• Preparations underway for university and government opportunities

BOCA RATON, FL / ACCESSWIRE / November 7, 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 an exclusive multi-year distribution agreement with Safety Strips Tech Corp ("Safety Strips"). Under the agreement, Greenlane will exclusively distribute Safety Strips fentanyl, xylazine and drink spike detection test strips in the U.S.

Safety Strips, Inc. Testing Strips

"Entering this adjacent product category has been high on our strategic priority list due to the alarming fact that the opioid crisis shows no signs of slowing and our customers are seeing increasing demand for more quality, affordable test strip options. We believe providing economical and reliable substance testing is critical to help prevent accidental overdoses as well as protecting individuals from drug-induced date rape," said Barbara Sher, Chief Executive Officer for Greenlane.

Added Sher "Given the strong customer demand for high quality and value in this segment, we are very pleased to have completed this deal with Safety Strips who, we believe, has industry-leading quality and technology."

Products are available to order today via the Company's multiple online retail storefronts, (vapor.com, puffitup.com, and higherstandards.com/) as well as its wholesale portal (wholesale.greenlane.com).

Safety Strips Test Portfolio

Safety Strips offers a single, low-cost test strip that provides an affordable, reliable way for people to test substances for fentanyl and xylazine (popularly known as tranq), two dangerous adulterants that are exacerbating the already critical and growing opioid epidemic.

Safety Strips Fentanyl Test Strip (FTS) ISO 13485 validated product, is an easy-to-use lateral flow immunoassay designedto swiftly detect potent synthetic opioids, including 3-Methyl Fentanyl, Acetyl Fentanyl, Butyryl Fentanyl, Carfentanil, Fentanyl, Furanyl Fentanyl, Ocfentanil, Remifentanil, Sufentanil, Valeryl Fentanyl, and p-Fluoro Fentanyl.

To use the test, a trace amount of the sample substance is mixed with water. The test strip is then dipped into the liquid for 15 seconds. After waiting approximately five minutes, the results can be read. One line indicates fentanyl is present in the sample; two lines indicate a negative result. Test strips are the easiest, fastest, and most accurate way to detect ultra-low nanogram trace amounts of fentanyl or xylazine in powders, pills or injectables and can help prevent accidental overdoses.

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 our 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:

IR@greenlane.com

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

What is the new distribution agreement between Greenlane (GNLN) and Safety Strips Tech Corp?

Greenlane has secured an exclusive multi-year distribution agreement to distribute Safety Strips' fentanyl, xylazine, and drink spike detection test strips in the U.S.

How do the Safety Strips test strips distributed by Greenlane (GNLN) work?

The test strips work by mixing a trace amount of the sample substance with water, dipping the strip for 15 seconds, and reading results after five minutes. One line indicates fentanyl presence, while two lines show a negative result.

Where can customers purchase the Safety Strips test products through Greenlane (GNLN)?

The test strips are available through Greenlane's online retail platforms (vapor.com, puffitup.com, higherstandards.com) and their wholesale portal (wholesale.greenlane.com).