Greenlane Regains Full Compliance with Nasdaq Continued Listing Rules

Rhea-AI Summary

Greenlane Holdings (NASDAQ:GNLN) has regained full compliance with Nasdaq Listing Rule 5605(c)(2) following the appointment of Michael C. Howe as an independent director and audit committee member on December 31, 2024. This appointment resolves all previously announced deficiencies in Nasdaq continued listing requirements.

Howe brings over 40 years of consumer and healthcare experience, having held management positions at Procter & Gamble and PepsiCo, and CEO roles at Arby's and MinuteClinic. His notable achievement includes expanding MinuteClinic from 19 locations to over 530 during his tenure, culminating in its acquisition by CVS in 2006. Howe's expertise spans commercial strategy, operations, and business development, with a focus on branding, marketing, and organizational development.

Positive

• Regained full Nasdaq compliance, eliminating listing concerns
• Added board member with extensive consumer goods and retail experience
• Strengthened corporate governance with new independent director

Negative

• None.

Insights

Corporate Governance Expert

The regaining of Nasdaq compliance is a critical regulatory milestone for Greenlane, resolving a significant corporate governance concern. The appointment of Michael Howe not only satisfies the Nasdaq requirement for three independent directors on the audit committee but also brings valuable operational expertise. His track record with MinuteClinic's expansion from 19 to over 530 locations and subsequent CVS acquisition demonstrates proven ability in scaling businesses and creating shareholder value.

The timing is particularly relevant given Greenlane's micro-cap status ($3.28M market cap) and the heightened importance of strong corporate governance for smaller public companies. Howe's accounting background and extensive consumer goods experience with P&G and PepsiCo adds important financial oversight capabilities to the audit committee, potentially improving risk management and financial controls.

For retail investors: Think of this as fixing a crack in the foundation - while it doesn't immediately boost profits, it removes a serious risk of delisting and strengthens the company's oversight structure. The addition of proven leadership experience in scaling businesses could prove valuable for Greenlane's growth strategy.

Appointment of new independent director, Michael Howe, brings significant expertise in commercial strategy, operations and business development

BOCA RATON, FL / ACCESSWIRE / January 15, 2025 / 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 it has regained compliance with Nasdaq Listing Rule 5605(c)(2), which requires Nasdaq listed companies to maintain an audit committee consisting of three independent directors. This development follows the appointment on December 31, 2024 of Mr. Michael C. Howe as an independent director of the Company and as a member of the Company's audit committee, effective immediately. With this appointment, Greenlane is now in full compliance with all Nasdaq continued listing requirements and has remedied all previously announced deficiencies.

Mr. Howe has a proven track record of leading and building successful consumer focused businesses across different sectors including consumer goods, fast food restaurants, SaaS products, and innovative healthcare companies. Mr. Howe has more than 40 years of consumer and healthcare experience including management positions with Procter & Gamble and PepsiCo, and CEO positions at Arby's, Minute Clinic (acquired by CVS in 2006), and several technology companies.

His leadership and expertise in creating innovative consumer focused brands was demonstrated during his tenure at MinuteClinic, a provider of safe, accessible and convenient healthcare services to the consumer. Mr. Howe joined MinuteClinic in June 2005 as the brand struggled to define a clear national expansion strategy. At that time, the company had established 19 clinics in two markets. Within 15 months Mr. Howe added more than 100 clinics in 13 markets and facilitated the sale of the company to CVS in September 2006. He stayed with CVS as CEO of MinuteClinic for two additional years leading the national expansion from the original 19 clinics to more than 530. After leaving CVS in September of 2008, Mr. Howe focused on supporting start up and early-stage companies in their expansion processes, as an angel investor, board member, and executive. His areas of focus include branding, marketing, site development, operational leadership and organizational development. He earned both his accounting and business degrees from the University of Minnesota, Duluth after serving 4 years in the U.S. Air Force.

"Michael will be a tremendous asset to the Board in its oversight of the Company's long-term strategy," said Barbara Sher, Chief Executive Officer for Greenlane. "His exceptional track record in growth-oriented organizations and his strategic insights will be invaluable as we continue to execute on our growth objectives. Michael's appointment reflects our ongoing commitment to enhancing our board with diverse, independent perspectives."

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. 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-lookingstatements 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

When did Greenlane (GNLN) regain Nasdaq compliance?

Greenlane regained Nasdaq compliance on January 15, 2025, following the appointment of Michael C. Howe as an independent director on December 31, 2024.

What Nasdaq rule did Greenlane (GNLN) comply with?

Greenlane complied with Nasdaq Listing Rule 5605(c)(2), which requires listed companies to maintain an audit committee consisting of three independent directors.

Who is the new independent director appointed to Greenlane's (GNLN) board?

Michael C. Howe was appointed as an independent director and audit committee member, bringing over 40 years of consumer and healthcare experience.

What experience does Greenlane's (GNLN) new director bring to the board?

Michael Howe brings experience from management positions at Procter & Gamble and PepsiCo, CEO roles at Arby's and MinuteClinic, and expertise in commercial strategy, operations, and business development.