Cannapany on March 31, 2021 No Comments
The two cannabis companies are ready to take on the expanded market set to come this year
2021, by most forecasts, is expected to be a huge year of growth for the cannabis industry around the world. This is the time that all cannabis companies have been patiently waiting for, an opportunity to see incredible expansion with huge benefits. KushCo is ready, as well, and has already begun making preparations. In its latest endeavor, the company is teaming up with Greenlane Holdings to produce a well-rounded cannabis firm that is ready to seriously target retail channels.
Greenlane is a cannabis packaging and accessories maker that can provide a tremendous amount of consumer-based assets to the industry. It and KushCo, which offers pre-filled vape cartridges, papers and more to multi-state operators around the US, have agreed to merge their operations in an all-stock deal. Once finalized, the combined company will be worth more then $400 million, with KushCo cofounder and CEO Nick Kovacevich stepping in as CEO. Bill Mote of Greenlane will serve as chief financial officer.
KushCo shareholders are expected to be delivered around 0.2546 a share of Greenlane Class A common stock for each KushCo share. This equates to a 6.3% premium over KushCo’s 20-day volume weighted average, and the company’s shareholders will control approximately 49.9% of the new company once the transaction is complete.
According to a press release, “The combined company will have the wide-ranging breadth of products and services needed to support the entire global cannabis industry. Greenlane’s and KushCo’s highly diverse complementary customer bases create strong opportunities for organic growth and are expected to deliver significant customer value through the introduction of Greenlane’s owned brand products and exclusive third-party brands to KushCo customers, including top multi-state operators and licensed producers. Additionally, the C-CELL suite of products, currently sold exclusively by KushCo and other distributors in the United States, will become available to Greenlane’s large B2B and B2C customer base.”
KushCo just announced that it had paid off some of its debt, which has given it better access to working capital. This, plus the merger with Greenlane, will greatly enhance the company’s ability to continue to serve the cannabis industry, while expanding its footprint.
Congratulation!