Business
Greenlane Completes Sale of Interest in VIBES
Company Sells Stake for $5.3 Million In CashBOCA RATON, FL / ACCESSWIRE / July 19, 2022 / Greenlane Holdings, Inc. ("Greenlane" or the "Company")
About this update from Greenlane Holdings, Inc.
[{"type":"text","content":"Company Sells Stake for $5.3 Million In CashBOCA RATON, FL / ACCESSWIRE / July 19, 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 announced that it has sold its stake in VIBES Holdings LLC (\"VIBES\") for $5.3 million in cash.The strategic sale aligns with Greenlane's plans to capitalize the business and accelerate the Company's path to profitability. The Company sold its interest in VIBES™ at an enterprise value of approximately 1x VIBES' trailing 12 months revenue, significantly higher than the implied multiple reflected in the Company's public market capitalization, further validating Greenlane's belief that its stock remains undervalued under a \"sum-of-the-parts\" analysis.Under terms of the sale, Greenlane has retained distribution rights to VIBES products and will remain a strategic partner with the premium rolling paper and apparel company.\"We are pleased to bring in $5.3 million through this sale,\" said Nick Kovacevich, CEO of Greenlane. \"We are even more pleased to see one of our brands privately valued at six times more than where our total business is currently being valued in the public markets. We admire the VIBES brand and its premium products and look forward to working strategically with the ownership group to ensure that VIBES continues to expand and succeed in the marketplace. As a distributor, we will continue to support our customers, while immediately improving our balance sheet through the sale of our interest.\"\"We are very excited to complete this strategic transition,\" said Berner, CEO of VIBES. \"As a brand builder, we feel that VIBES is just scratching the surface and its future trajectory is extremely compelling. We appreciate everything Greenlane has done as a partner to get VIBES to this level, and we look forward to leveraging their distribution expertise and vast customer network in the future as we continue to make VIBES a staple product on shelves around the globe.\"About Greenlane Holdings, Inc.Greenlane is the premier global platform for the development and distribution of premium cannabis accessories, packaging, vape solutions, and lifestyle products. We operate as a powerful house of brands, third-party brand acceler...