Greenlane Signs New Exclusive U.S. Distribution Agreement with Green Gruff USA Inc.

Rhea-AI Summary

Greenlane Holdings (Nasdaq: GNLN) has signed an exclusive U.S. distribution agreement with Green Gruff USA to enter the canine CBD supplements market. Green Gruff offers veterinarian-approved organic CBD-infused supplements and treats for dogs, manufactured in the U.S.

The products, developed by pet industry professionals and veterinarians, include non-GMO, pesticide-free, broad-spectrum hemp leaf supplements. These will be available through Greenlane's online retail platforms (vapor.com, puffitup.com, higherstandards.com) and wholesale portal.

Green Gruff currently serves over 1,000 dispensaries, and this partnership aims to expand their reach while diversifying Greenlane's product offerings. The agreement positions Greenlane to capitalize on the growing U.S. demand for legal CBD pet products, potentially generating incremental revenue.

Positive

• Exclusive U.S. distribution rights secured for CBD pet products
• Access to Green Gruff's existing network of 1000+ dispensaries
• Expansion into new market segment (pet CBD supplements)
• Additional revenue stream through diversified product offering

Negative

• None.

Insights

Market Research Analyst

The exclusive U.S. distribution agreement between Greenlane and Green Gruff represents a strategic entry into the rapidly growing pet CBD market, though its immediate financial impact may be given GNLN's current market cap of just $3.6M. The pet CBD market is projected to reach $4.7B by 2030, growing at a CAGR of 58.9%. Green Gruff's existing presence in 1000+ dispensaries provides a solid foundation, but the real value proposition lies in Greenlane's established e-commerce infrastructure and wholesale channels.

The distribution agreement diversifies Greenlane's revenue streams beyond traditional cannabis accessories into the pet wellness sector - a more mainstream market with potentially higher margins and less regulatory scrutiny. However, investors should note that while this expansion demonstrates strategic thinking, the company's micro-cap status and challenging financial position suggest this deal alone may not be transformative enough to significantly alter its near-term trajectory.

Veterinary Business Consultant

From a veterinary market perspective, Green Gruff's positioning with veterinarian-approved formulations and broad-spectrum CBD addresses key quality concerns in the pet supplement space. The focus on non-GMO, pesticide-free ingredients aligns with premium pet care trends, where pet owners increasingly seek professional-grade products. However, the regulatory landscape for pet CBD remains complex - while the 2018 Farm Bill legalized hemp-derived CBD, the FDA hasn't approved CBD products for animals, creating some market uncertainty.

The partnership leverages Greenlane's established distribution network to potentially capture market share in the growing veterinary supplements category. The inclusion of targeted formulations for cardiovascular health, pain management and mental health demonstrates product sophistication that could command premium pricing. Yet, success will largely depend on veterinary community acceptance and clinical validation of CBD efficacy in companion animals.

Distribution Agreement Marks Greenlane's Expansion into the Canine All-natural Cannabidiol Supplements and Treats Market

BOCA RATON, FL / ACCESSWIRE / January 6, 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 entered into a new exclusive U.S. distribution agreement with Green Gruff USA Inc. ("Green Gruff"). Grenn Gruff offers a comprehensive line of veterinarian approvedorganic cannabidiol-infused supplements and treats manufactured in the U.S. to support a dog's overall health and vitality.

At Green Gruff, a team of pet industry professionals, including veterinarians, teamed up to develop the cannabidiol ("CBD") soft chew products, which are non-GMO, pesticide-free, and include broad-spectrum hemp leaf and naturally occurring CBD. CBD has been researched by top veterinarians for cardiovascular, pain management, orthopedic and mental health in animals.

Green Gruff products, including tinctures and treats for dogs, are available to order via the Company's multiple online retail storefronts, (vapor.com, puffitup.com, and higherstandards.com/) as well as its wholesale portal (wholesale.greenlane.com).

"We are excited to launch Green Gruff's successful pet supplement product line and provide our customers with access to the health and wellness benefits of CBD for companion animals," said Barbara Sher, Chief Executive Officer for Greenlane. "With our broad distribution platform, we are well positioned to meet the growing U.S. demand for legal, safe and effective CBD pet products, which should generate incremental revenue for Greenlane and marks another strategic step in our goal to diversify and enhance our product offerings."

Jonathan Persofsky, CEO of Green Gruff, stated, "Partnering with Greenlane allows us to expand our reach beyond the 1000+ dispensaries we currently serve, bringing our products to even more dogs and their owners. Together, we're making strides towards achieving Green Gruff's simple mission of helping as many dogs as possible live happier, healthier lives."

About Green Gruff USA Inc.

Green Gruff is a leading provider of holistic wellness solutions for dogs, dedicated to improving their health and quality of life through natural, sustainable and science-backed products. Founded in 2019 with a deep love for dogs and a commitment to their well-being, Green Gruff creates premium supplements and treats that address common canine health concerns, from joint support and calming behavior to skin and coat care. With a focus on innovation and transparency, Green Gruff delivers products made with responsibly sourced ingredients and formulated with the guidance of veterinary experts.

For additional information, please visit: https://greengruff.com/.

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

What products will Greenlane (GNLN) distribute through the Green Gruff partnership?

Greenlane will distribute veterinarian-approved organic CBD-infused supplements and treats for dogs, including tinctures and soft chews that are non-GMO and pesticide-free.

Where will Green Gruff's CBD pet products be available through Greenlane (GNLN)?

The products will be available through Greenlane's online retail platforms (vapor.com, puffitup.com, higherstandards.com) and wholesale portal (wholesale.greenlane.com).

How many dispensaries does Green Gruff currently serve before the GNLN partnership?

Green Gruff currently serves over 1,000 dispensaries before the partnership with Greenlane.

What is the expected revenue impact of the Green Gruff partnership for GNLN?

While specific figures aren't provided, Greenlane expects the partnership to generate incremental revenue through meeting the growing U.S. demand for legal CBD pet products.

When does Greenlane's (GNLN) distribution agreement with Green Gruff begin?

The distribution agreement was announced on January 6, 2025, with immediate implementation for product distribution through Greenlane's platforms.