Greenlane To Raise $6.5M Through Private Investment Deal With Large Institutional Investor

Greenlane Holdings (NASDAQ:GNLN) announced Monday that it has entered into a securities purchase agreement with a large institutional investor for aggregate gross cash proceeds of $6.5 million. Under the agreement, the vendor of cannabis accessories and vaporization products will issue 3.36 million units.

The Florida-based company intends to use the net proceeds from the private placement for working capital and general corporate purposes.

The $6.5 million raise comes on the heels of Greenlane's plan to distribute Safety Strips, Inc.'s fentanyl, xylazine and drink spike detection test strips across the U.S. The company's Safety Strips Fentanyl Test Strip (FTS) ISO 13485 validated product can detect potent synthetic opioids. The news caused the company's shares to skyrocket by 244.40%.

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Under the securities purchase agreement, each unit will include one share of stock and two warrants. Each warrant is exercisable for one share of common stock at an exercise price of $2.50 per share, and will expire five years from the initial exercise date.

The closing of the private placement is expected to occur on or about August 13, 2024, subject to the satisfaction of customary closing conditions.

Aegis Capital Corp. is acting as the exclusive placement agent for the private placement. Sichenzia Ross Ference Carmel LLP is serving as counsel to the company for the private placement. Kaufman & Canoles, P.C. is serving as counsel to Aegis Capital Corp. for the private placement.

Price Action

Greenlane shares traded 9.57% lower at $10.40 per share during Tuesday's pre-market session.

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