One of the world’s largest sellers of premium cannabis accessories and specialty vaporization products, Greenlane Holdings, has recently announced that it has done the necessary paperwork to finalize a deal of utmost convenience. The definitive agreement was made with a single institutional investor. It is based on the purchase and sale of 21,600,000 shares of common stock and warrants to purchase 21,600,000 shares of common stock at a purchase price per share of $0.25 in a registered direct offering.
As announced, five and a half years will be the term of the warrants to be issued, which will be exercisable six months after the date of issuance. The exercise price will be $0.25 per share. Subject to the satisfaction of customary closing conditions, the offering is expected to be completed today.
If all goes according to plan, the gross proceeds from the offering are expected to be approximately $5.4 million. The company made it clear that the net proceeds from the offering will be used essentially for general corporate purposes. AGP/Alliance Global Partners has been the sole placement agent for the offering at this time.
The offering is being made in reliance on an effective registration statement on Form S-3 previously filed with the US Securities and Exchange Commission (SEC). In addition, a prospectus supplement describing the terms of the proposed offering will now be filed with the SEC and can be obtained through the SEC’s website.
Greenlane is known for operating as a branded powerhouse and an omnichannel distribution platform. As a result, the company is able to provide a quality of products unmatched in the market without leaving out customer service and logistics to accelerate the growth of its portfolio. With moves such as these, the firm seeks to further develop stronger corporate operations in order to consolidate its position as one of the most relevant companies in the industry.