Greenlane Announces Pricing of $6.5 Million Private Placement Priced At-the-Market Under Nasdaq Rules
Greenlane Holdings (NASDAQ:GNLN), a leading global seller of premium cannabis accessories, has announced a $6.5 million private placement with a single institutional investor. The company will issue 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 have an exercise price of $2.50 per share and will expire after 5 years.
The private placement is expected to close on August 13, 2024, subject to customary closing conditions. Greenlane plans to use the net proceeds for working capital and general corporate purposes. Aegis Capital Corp. is acting as the Exclusive Placement Agent, with legal counsel provided by Sichenzia Ross Ference Carmel LLP for Greenlane and Kaufman & Canoles, P.C. for Aegis Capital Corp.
Greenlane Holdings (NASDAQ:GNLN), un rivenditore globale leader di accessori premium per cannabis, ha annunciato un collocamento privato di 6,5 milioni di dollari con un singolo investitore istituzionale. L'azienda emetterà 2.363.637 unità e unità pre-finanziate, ciascuna costituita da un'azione ordinaria (o warrant pre-finanziato) e due warrant ordinari. I warrant ordinari hanno un prezzo di esercizio di 2,50 dollari per azione e scadranno dopo 5 anni.
Il collocamento privato è previsto per chiudersi il 13 agosto 2024, soggetto alle consuete condizioni di chiusura. Greenlane prevede di utilizzare i proventi netti per capitale circolante e scopi aziendali generali. Aegis Capital Corp. funge da Agente Esclusivo per il Collocamento, con consulenza legale fornita da Sichenzia Ross Ference Carmel LLP per Greenlane e Kaufman & Canoles, P.C. per Aegis Capital Corp.
Greenlane Holdings (NASDAQ:GNLN), un vendedor global líder de accesorios premium para cannabis, ha anunciado un colocación privada de 6.5 millones de dólares con un único inversionista institucional. La compañía emitirá 2,363,637 unidades y unidades prefinanciadas, cada una compuesta por una acción de capital común (o warrant prefinanciado) y dos warrants comunes. Los warrants comunes tienen un precio de ejercicio de 2.50 dólares por acción y caducarán después de 5 años.
Se espera que la colocación privada se cierre el 13 de agosto de 2024, sujeto a las condiciones de cierre habituales. Greenlane planea utilizar los ingresos netos para capital de trabajo y fines corporativos generales. Aegis Capital Corp. actúa como Agente Exclusivo del Colocación, con asesoría legal proporcionada por Sichenzia Ross Ference Carmel LLP para Greenlane y Kaufman & Canoles, P.C. para Aegis Capital Corp.
Greenlane Holdings (NASDAQ:GNLN), 프리미엄 대마초 액세서리의 세계적 선두 판매업체가 단일 기관 투자자와 함께 650만 달러의 사모 배정을 발표했습니다. 회사는 2,363,637 개의 유닛 및 사전 자금 조달 유닛을 발행할 예정이며, 각 유닛은 하나의 보통주(또는 사전 자금 조달 와arrant)와 두 개의 보통와arrant로 구성됩니다. 보통와arrant의 행사가격은 주당 2.50달러이며 5년 후 만료됩니다.
사모 배정은 2024년 8월 13일에 마감될 예정이며, 일반적인 마감 조건이 적용됩니다. Greenlane은 순수익을 운영 자금 및 일반 기업 목적에 사용 계획입니다. Aegis Capital Corp.는 독점 배정 대리인으로 활동하며, Greenlane를 위한 법률 자문은 Sichenzia Ross Ference Carmel LLP이, Aegis Capital Corp.를 위한 법률 자문은 Kaufman & Canoles, P.C.가 제공합니다.
Greenlane Holdings (NASDAQ:GNLN), un leader mondial dans la vente d'accessoires de cannabis haut de gamme, a annoncé un placement privé de 6,5 millions de dollars avec un unique investisseur institutionnel. La société émettra 2 363 637 unités et unités préfinancées, chacune composée d'une action ordinaire (ou warrant préfinancé) et de deux warrants ordinaires. Les warrants ordinaires ont un prix d'exercice de 2,50 dollars par action et expireront après 5 ans.
Le placement privé devrait se clôturer le 13 août 2024, sous réserve des conditions de clôture habituelles. Greenlane prévoit d'utiliser le produit net pour le fonds de roulement et les fins générales de l'entreprise. Aegis Capital Corp. agit en tant qu'agent de placement exclusif, avec un conseil juridique fourni par Sichenzia Ross Ference Carmel LLP pour Greenlane et Kaufman & Canoles, P.C. pour Aegis Capital Corp.
Greenlane Holdings (NASDAQ:GNLN), ein führender globaler Verkäufer von hochwertigen Cannabis-Zubehör, hat eine Private Placement von 6,5 Millionen Dollar mit einem einzigen institutionellen Investor angekündigt. Das Unternehmen wird 2.363.637 Einheiten und vorfinanzierte Einheiten ausgeben, die jeweils aus einer Stammaktie (oder vorfinanziertem Warrant) und zwei Stammwarrants bestehen. Die Stammwarrants haben einen Ausübungspreis von 2,50 Dollar pro Aktie und verfallen nach 5 Jahren.
Das Private Placement soll am 13. August 2024 abgeschlossen werden, vorbehaltlich der üblichen Abschlussbedingungen. Greenlane plant, die Nettoerlöse für Betriebs- und allgemeine Unternehmenszwecke zu verwenden. Aegis Capital Corp. fungiert als exklusiver Platzierungsagent, wobei die rechtliche Beratung für Greenlane von Sichenzia Ross Ference Carmel LLP und für Aegis Capital Corp. von Kaufman & Canoles, P.C. bereitgestellt wird.
- Secured $6.5 million in gross cash proceeds through private placement
- Strengthened balance sheet for working capital and general corporate purposes
- Attracted investment from a single institutional investor
- Potential dilution of existing shareholders due to issuance of new units and warrants
- Warrants exercisable at $2.50 per share, which may impact future stock price
Insights
Greenlane's $6.5 million private placement is a double-edged sword for investors. While it provides necessary working capital, it comes at a cost of significant dilution. The issuance of 2,363,637 units, each containing a share and two warrants, could substantially increase the share count. The warrant exercise price of $2.50 is notably higher than the current stock price, indicating potential upside expectations. However, the
This private placement reflects the challenging market conditions for cannabis-adjacent companies. Greenlane's resort to a private placement instead of a public offering suggests investor appetite in the open market. The at-the-market pricing indicates a lack of premium, further highlighting investor caution. The inclusion of warrants sweetens the deal for the institutional investor but poses long-term dilution risks for existing shareholders. This financing method is increasingly common in the cannabis sector, where traditional banking support remains Greenlane's ability to secure this funding, despite market headwinds, demonstrates some investor confidence in its business model. However, the terms suggest a cautious outlook on the company's near-term prospects and the broader cannabis accessories market.
The structure of this private placement raises several legal considerations. The use of pre-funded warrants alongside common stock units is a nuanced approach to navigate regulatory constraints. This structure allows the investor to acquire a significant stake without immediately triggering ownership thresholds that might require additional disclosures or approvals. The registration rights agreement is a key provision, obligating Greenlane to file registration statements with the SEC. This ensures future liquidity for the investor but also signals potential future selling pressure once the shares are registered. The explicit disclaimer about the securities being unregistered under the Securities Act of 1933 is important for regulatory compliance. Investors should be aware that these securities have transferability until registered, which could impact short-term liquidity.
BOCA RATON, FL / ACCESSWIRE / August 12, 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 that it has entered into a securities purchase agreement with a single institutional investor for aggregate gross cash proceeds of
In connection with the private placement, the Company will issue an aggregate of 2,363,637units 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
The closing of the private placement is expected to occur on or about August 13, 2024, subject to the satisfaction of customary closing conditions.
Aegis Capital Corp. is acting as the Exclusive Placement Agent for the private placement. Sichenzia Ross Ference Carmel LLP is serving as counsel to the Company for the private placement. Kaufman & Canoles, P.C. is serving 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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