Business
Greenlane Announces Leadership Changes and Plans to Capitalize Business and Accelerate Path to Profitability
Headcount Reductions, Exclusive of Anticipated Pre-Announced Merger Synergies, Expected to Result in Approximately $8 Million in Additional Annual Cost
About this update from Greenlane Holdings, Inc.
[{"type":"text","content":"Headcount Reductions, Exclusive of Anticipated Pre-Announced Merger Synergies, Expected to Result in Approximately $8 Million in Additional Annual Cost SavingsCraig Snyder Appointed as New Chief Commercial Officer, Responsible for the Company's Sales and \"Go-to-Market\" StrategyCompany Intends to Sell Non-Core Assets, Dispose of Low-Margin Inventory, and Secure Asset-Based Loan to Capitalize the Business and Increase LiquidityBOCA RATON, FL / ACCESSWIRE / March 10, 2022 / Greenlane Holdings, Inc. (\"Greenlane\" or \"the Company\") (NASDAQ:GNLN), a global house of brands and one of the largest sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today announced leadership changes and plans to capitalize the business and accelerate the Company's path to profitability, as well as provided preliminary financial results for its fourth quarter and full year ended December 31, 2021.Corporate Plans to Reduce Cost Structure and Increase LiquidityAs part of its ongoing cost-cutting initiatives to accelerate the path to profitability, Greenlane completed a reduction in force, which the Company expects will result in approximately $8.0 million in annualized cash compensation cost savings. The reduction in force encompassed a broad spectrum of divisions both domestically and abroad. In conjunction with the reduction in force, the Company is also implementing additional profit enhancing initiatives, such as reducing its facility footprints worldwide and adjusting its go-to-market strategy significantly to reduce its operating costs and enhance liquidity.The Company expects these initiatives to help it achieve adjusted selling, general & administrative (\"Adjusted SG&A\") expenses (which excludes depreciation and amortization) of between approximately $14.0 million and $16.0 million on a quarterly basis by Q3 2022, down from approximately $26.6 million in Q3 2021.Additional strategic measures that the Company is pursuing or intends to pursue in order to capitalize the business in a non-dilutive manner, include:Conducting a sale leaseback of the Company's headquarter building;Disposing of non-core assets;Discontinuing sales of lower-margin 3rd-party brands and selling existing inventory;Raising prices on select products; and,Securing an asset based loan that will support working capital needs...