Business
Greenlane Enters Agreement with Universal Distribution to Distribute Greenlane Brands in Latin America
Company Partners with Well-Capitalized, Local Experts to Expand the Reach of Greenlane Brands into Critical Emerging Markets in an Asset-Light MannerBOCA
About this update from Greenlane Holdings, Inc.
[{"type":"text","content":"Company Partners with Well-Capitalized, Local Experts to Expand the Reach of Greenlane Brands into Critical Emerging Markets in an Asset-Light MannerBOCA RATON, FL / ACCESSWIRE / May 13, 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, has announced today that it has entered into a distribution agreement with Universal Distribution LATAM LLC (\"Universal Distribution\") to distribute its proprietary portfolio of house brands (the \"Greenlane Brands\") in Latin America.Under the terms of the agreement, Greenlane has granted Universal Distribution: (a) the exclusive right to promote, market, distribute and sell the Greenlane Brands to retailers for resale in Chile, Uruguay and Argentina; (b) the non-exclusive right to promote, market, distribute and sell the Greenlane Brands via all wholesale channels in other territories in South America, Central America, and Mexico. As part of the agreement, Universal Distribution also has been granted the non-exclusive right to sell certain third-party brand products.Universal Distribution has committed to the following sales targets within the first three years of the agreement to maintain exclusivity, consisting of both Greenlane Brands and select high-velocity third-party brand products:Year 1: at least $1.5 million of Greenlane Brands and third-party productsYear 2: at least $1.9 million of Greenlane Brands and third-party productsYear 3: at least $2.4 million of Greenlane Brands and third-party products\"This partnership represents a major milestone in the Company's history, as we expand into the promising Latin America market,\" said Nick Kovacevich, CEO of Greenlane. \"Unlike plant-touching operators, Greenlane is not subject to the same global trade constraints and can ship its products worldwide in an asset-light manner, enabling us to scale faster and wider, and ultimately build our brands in these emerging markets ahead of legalization. By relying on the resources and expertise of Universal Distribution, who intimately knows and understands the local markets, we can significantly expand the reach of our products without having to invest considerable capital to build our own operations in these markets. Overall, this partne...