Business
Greenlane Provides Operational Update and Announces Leadership Changes to Streamline and Optimize Business
Company Achieved Approximately $8 Million of Cost Saving Synergies for the Four Months Following KushCo Merger; Reiterates Total Cost Saving Synergies of $15
About this update from Greenlane Holdings, Inc.
[{"type":"text","content":"Company Achieved Approximately $8 Million of Cost Saving Synergies for the Four Months Following KushCo Merger; Reiterates Total Cost Saving Synergies of $15 to $20 Million Within 24 Months of ClosingAaron LoCascio to Step Down as President and Remain as Board Member; Adam Schoenfeld to Transition to Chief Marketing Officer Role with Company Eliminating Chief Strategy Officer RoleCompany Secures $8 Million Bridge Loan from LoCascio to Support Organic Growth InitiativesBOCA RATON, FL / ACCESSWIRE / January 4, 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 provided an operational and integration update, as well as announced leadership changes to streamline the organization and optimize the cost structure of the business.Operational and Integration UpdateGreenlane is pleased to have achieved its synergies for the first four months following the closing of its merger with KushCo Holdings, Inc. (\"KushCo\") in August 2021. The Company has been consolidating vendors and infrastructure; reducing headcount; rationalizing inventory and reallocating resources to higher-margin goods; and, developing go-to-market cross-selling strategies to penetrate KushCo's customer base of leading multi-state operators with Greenlane's proprietary owned brands, and vice versa.Total cost saving synergies achieved since the closing of the merger are estimated to be approximately $8 million. The Company reiterates its guidance of achieving between $15 million and $20 million of cost saving synergies within 24 months of closing.Leadership ChangesThe Company and Mr. LoCascio have amicably agreed for Mr. LoCascio to step down from his role as President, effective December 31, 2021. As the Company's co-founder, a board member and one of its largest shareholders, Mr. LoCascio remains invested in Greenlane's continued future success, and has agreed to provide the Company with an $8 million bridge loan to support organic growth initiatives.Since the closing of the merger, Mr. LoCascio has been instrumental in advocating for cross-functional alignment and collaboration within the executive leadership team, while continuing to share his deep institutional knowledge and unders...