Some time ago, the US federal government established the Employee Retention Credit (ERC) to provide a refundable employment tax credit to assist businesses with the cost of retaining employees. Greenlane, one of the world’s largest sellers of premium cannabis accessories, appears to be benefiting from more than $4.8 million thanks to that process. At the same time as this is happening, the company is reducing its current loan facility by more than 40% from $15 million to approximately $8.5 million.
No doubt, 2023 is starting off with great news for Greenlane’s finance department. The firm recently announced the inflow of non-dilutive capital, as well as the corresponding voluntary repayment of its existing debt. The news comes as the cannabis industry leader continues to work hard on its transition to a consumer business model with an emphasis on higher-margin private labels.
“Today’s announcement allows us to reduce our debt and provide capital for the innovative products that will continue to come from Greenlane throughout the year,” said Craig Snyder, CEO of Greenlane. “It is also a key step forward in structuring the business on its path to profitability.”
It is well known that having orderly finances and striking a balance between expenses and revenues will change a company’s outlook. This clears the way for it to be able to find many opportunities within a market as changing as the marijuana market.
Liquid cash is important to run the day-to-day operations of the organization. From the smallest expense to large business expenses, good finance is a must. Greenlane appears to be making the necessary moves to meet all of its short- and long-term goals.