In #finance, leading #cannabis industry #ancillary companies Greenlane Holdings and KushCo announce plans for an all-stock #merger. Under the agreement, #California-based KushCo, which specializes in #marijuana packaging, vape hardware and complementary solvents, will become a wholly-owned subsidiary of cannabis accessories powerhouse Greenlane. The transaction will issue KushCo #stockholders approximately 0.2546 shares of Greenlane common stock per KushCo share, resulting in Greenlane #investors owning slightly more of the combined entity at 50.1 percent upon the deal’s expected closing by the third quarter of this year. The new company will be named at a later date and based out of Greenlane’s current headquarters in #Boca Raton, #Florida. The complementary product offerings of both #businesses is predicted to generate up to 20 #million dollars of annual cost-saving synergies and increased profitability within two years. The news comes the same day Greenlane reported record fourth quarter and 2020 #fiscal year results. Though total #revenue fell to 138 million dollars compared to 2019’s 185 million, core revenue, which is defined as non-nicotine earnings, grew by 12.7 percent to 125 million. Similar trends were seen in quarterly results, which the company attributed to a shift in focus toward higher-#margin #sales opportunities, including their own Greenlane branded products. The KushCo agreement will continue their M&A expansion #strategy, and follows their #acquisition of #silicone smoking product manufacturer and longtime partner Eyce last month. Greenlane currently serves more than 8,000 retail locations and employs over 250 people across the #US, #Canada, and #Europe.
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