Business
Greenlane Announces Update on Plan to Generate $30 Million in Non-Dilutive Liquidity
BOCA RATON, FL / ACCESSWIRE / June 22, 2022 / Greenlane Holdings, Inc. ("Greenlane" or "the Company") (NASDAQ:GNLN), one of the largest global sellers of
About this update from Greenlane Holdings, Inc.
[{"type":"text","content":"BOCA RATON, FL / ACCESSWIRE / June 22, 2022 / Greenlane Holdings, Inc. (\"Greenlane\" or \"the Company\") (NASDAQ:GNLN), one of the largest global sellers of premium cannabis accessories, child-resistant packaging, and specialty vaporization products, today provided an update on its strategy to generate more than $30 million in liquidity, as part of its previously announced strategic plan to reduce its cost structure, accelerate its path to profitability, and increase liquidity on a non-dilutive basis.As previously announced in March 2022, this strategy to generate $30 million in non-dilutive liquidity entails the following primary components:Securing an asset-based loan to support working capital needs;Selling the Company's headquarters building in Boca Raton, Florida; and,Discontinuing and disposing of non-core and lower-margin inventory.For the past three months, Greenlane has been engaged in an intensive and comprehensive process to select the ideal partner for an asset-based loan that can support its working capital needs. The Company is in negotiations with respect to this loan facility, and expects to execute an agreement by early Q3 2022, which is expected to result in more than $10 million of liquidity.In addition, the Company listed its headquarters building for sale in May 2022 and has garnered significant interest from several buyers amidst a strong Florida commercial real estate market. Given management's decision to move to a hybrid work model, the Company plans to lease the top floor to another tenant until the building is sold. Along with this initiative, the Company is in the process of selling other non-core assets, which if sold together with the building at the sales price anticipated by management, is expected to generate an additional $10 million of liquidity.Finally, the Company is working to sell through its excess & obsolete (\"E&O\") inventory of lower-margin, non-strategic products, along with reducing the overall level of inventory on hand. In May, the Company commenced its official E&O sales program internally and has since sold more than $1 million of previously reserved E&O inventory. Management anticipates that the proceeds from these E&O sales, combined with a general sell-down of other non-core third-party brand inventory, is expected to generate more than $10 million of liquidity for the Compan...