Greenlane Holdings, a cannabis industry ancillary product company, sold its corporate headquarters to Boca Raton in Florida for almost $10 million. According to a Thursday news release, the sale is part of Greenlane’s ongoing plan to generate $30 million of “non-dilutive liquidity” by the end of the year. ASC Capital was the buyer.
Greenlane will use the proceeds to repay the remaining $7.8 million mortgage on the property,” according to a regulatory. The remainder will be used for corporate purposes. While the company will still be based in the same building, it will relocate to a different suite.
Greenlane CEO Nick Kovacevich stated that it is not practical to own a large HQ building in today’s hybrid workplace environment. However, consolidating its office footprints and warehouse footprints will make it more cost-efficient, streamlined and scalable.
Kovacevich added, “We continue to execute well on our liquidity initiatives, despite the extremely challenging macro environments. Additionally, we are always evaluating areas within the portfolio to unlock value that currently isn’t represented in our public market capitalization. Furthermore, we are optimizing our business and materially reducing our costs. In today’s hybrid work environment, owning a large HQ building doesn’t make sense for Greenlane, and consolidating our office and warehouse footprints will allow us to be more cost-efficient, streamlined, and scalable.”
Greenlane, which was reorganizing its marijuana packaging division following a 2021 merger with KushCo, announced that it was selling the unit. Greenlane’s product line includes accessories for vaporizing and smoking cannabis, as well packaging.
The change comes soon after the launch of a new enhanced wholesale shopping experience at wholesale.greenlane.com. Customers can now access the new site 24/7 to buy thousands of products from Greenlane brands like Higher Standards, DaVinci Vaporizers and K. Haring, as well as third-party brands such Grenco Science and Storz & Bickel.
Greenlane’s growth strategy includes the wholesale website. It will increase sales, profitability, and business efficiency. Customers will enjoy a simplified user experience, which streamlines processes and allows customers the ability to interact with Greenlane whenever they want.