BOCA RATON, FL - Greenlane Holdings, Inc. (NASDAQ:GNLN), a leading global distributor of cannabis accessories and vaporization products, announced today its intent to distribute CURB Lifestyle, Inc.'s patented inhalation device across various markets, including the U.S., Canada, Latin America, and the EU. The non-binding letter of intent (LOI) positions Greenlane to leverage its omnichannel distribution platform to deliver CURB's non-heating, ultrasonic vibration-based device, which is compatible with substances such as nicotine, cannabinoids, and other wellness compounds.
CURB's technology aims to provide a safer and more efficient method for inhalation by using ultrasonic vibrations to create a fine mist, ensuring maximum absorption without the use of high temperatures. The water-soluble formulations are designed to minimize health risks and maintain the integrity of active compounds. The products are expected to be available for order starting November 15, 2024, through Greenlane's online and wholesale portals.
In addition to the distribution agreement, Greenlane and CURB plan to explore the development of a comprehensive portfolio of lifestyle products. These products will focus on consumer health and wellness, ranging from vitamins to pre and post-workout supplements, sleep aids, and stress relief applications.
Barbara Sher, CEO of Greenlane, expressed enthusiasm for the partnership, highlighting the alignment with the company's strategy to expand its product portfolio and access the growing health and wellness market. She emphasized the potential of this collaboration to drive sales, expand market presence, and enhance shareholder value.
The collaboration between Greenlane and CURB is seen as a pivotal moment for CURB, as it seeks to introduce its patented technology to a global audience through Greenlane's extensive network. The partnership is expected to transform the delivery of wellness products, offering consumers a dual-use approach that seamlessly integrates into their daily lives.
This announcement is based on a press release statement, which includes forward-looking statements subject to risks, uncertainties, and other factors that could affect Greenlane's business and financial results. These statements are predictions and should be considered in the context of the various risks outlined in Greenlane's SEC filings. The company advises consulting further disclosures for related subjects in their public announcements and SEC filings.
In other recent news, Greenlane Holdings has announced a series of significant developments. The company has disclosed plans to distribute a new line of drug detection test strips, a move that aligns with recent legislation in California. This initiative is in response to the growing opioid epidemic in the United States and aims to provide a quick and accurate method for individuals to test substances for dangerous adulterants.
Greenlane's CEO, Barbara Sher, recently increased her stake in the company, purchasing 12,500 common shares, signaling strong belief in the company's potential. In a bid to raise $6.5 million for working capital and general corporate purposes, Greenlane disclosed a securities purchase agreement, issuing over 2.3 million units. Aegis Capital Corp. is serving as the exclusive placement agent for this private placement.
Furthermore, Greenlane has announced a one-for-11 reverse stock split of its Class A common stock. This move is designed to meet Nasdaq's minimum bid price requirement, reducing the number of issued and outstanding shares from approximately 5.8 million to around 0.5 million. These are all recent developments in the company's ongoing growth initiatives.
InvestingPro Insights
Greenlane Holdings' strategic move to distribute CURB Lifestyle's innovative inhalation device comes at a critical time for the company. According to InvestingPro data, Greenlane's revenue for the last twelve months as of Q2 2024 stands at $29.37 million, with a concerning revenue growth decline of -68.83% over the same period. This partnership could potentially help reverse this trend.
InvestingPro Tips highlight that Greenlane "operates with a significant debt burden" and is "quickly burning through cash." These factors underscore the importance of this new distribution agreement, which could provide a much-needed boost to the company's financial health. The collaboration with CURB Lifestyle aligns well with Greenlane's strategy to expand its product portfolio and tap into the growing health and wellness market, as mentioned by CEO Barbara Sher.
Another relevant InvestingPro Tip indicates that "analysts anticipate sales growth in the current year." This expectation may be partly driven by strategic moves like the CURB partnership. However, investors should note that Greenlane is "not profitable over the last twelve months," with an operating income margin of -59.19% for the last twelve months as of Q2 2024.
It's worth noting that Greenlane's stock has shown a "strong return over the last three months," with a 30.77% price total return. This recent positive momentum could be further supported by the potential success of the CURB distribution agreement.
For readers interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for Greenlane Holdings, providing a deeper understanding of the company's financial position and market performance.
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